Nathan Cohen, age 45, is a single taxpayer who lives at 2245 Mardel St., San Jose, CA 95130. His social security number is 351-42-1961. Nathan's earnings and withholdings as a marketing director at a high-tech company for 2020 are: Earnings from Placeware, Inc. $297,000 (this is after subtracting his health insurance premiums -see below) Federal Income tax withheld $50,000 State income tax withheld $23,500 Other facts and possibly useful information: Nathan earns interest on a savings account at Bank of the West of $13,075. Nathan is divorced, the divorce was final May 3, 2016, and pays his ex-wife $4,000 per month. When their 15-year old daughter (who lives 100% with the ex-wife) reaches 18, the payments drop to $2,800 per month. The reason it drops is because he is no longer paying child support once his daughter turns 18. His ex-wife's social security number is 857-51- 6438. Nathan does not claim his daughter as a dependent. Nathan paid the following amounts (he has records to prove payment): California DMV renewal taxes (the value based part): $300 Credit card interest expense $1,760 Auto Loan interest expense $4,300 Property taxes on his home $6,200 Blue Cross health insurance premiums $1,800 withheld from his paycheck (not deducted on Sch A, already paid with pretax dollars!). Other medical expenses $790 Income tax preparation fees for his 2019 income tax return $900, which he paid on April 2020 when his 2019 taxes were prepared. Federal 2019 income taxes paid in April 2020 when he filed his 2019 federal income tax return $1,825 California 2019 income taxes paid in April 2020 when he filed his 2019 California tax return $500 Check to Boy Scouts of America $1,100 Check for fundraiser to build a new building at Harker School, where his daughter goes, $8,000. This payment was not related to tuition and neither Nathan nor his family received any specific benefits. Check to St. Andrews Church $10,000 Stanford Business School Alumni Association $12,000 (fundraiser to support the business school) Silicon Valley Democratic Party Fund $1,000 (2020 campaign fundraiser) Nathan paid $100 to attend a fundraising dinner at the Tech Museum of Innovation, the value of the dinner is $50. Nathan received a Form 1098 Mortgage Interest Statement from Bank of the West indicating $19,700 of interest expense on his mortgage (a qualified acquisition mortgage) Complete Nathan's Form 1040, Schedules 1 & 2, Schedule A, Schedule B, Forms 8959 and 8960. Don't forget he paid state taxes and they should be deducted on Schedule A. If you need to make assumptions, they should be realistic. Hint: Form 8959, lines 7, 18, 22 and 24 should be $873, and form 8960, Line 17 should be $454, and that the total of these additional taxes belong on Schedule 2 (you figure out where on Sch 2), and on line 23 of Form 1040. Line 25d on page 2 of Form 1040 should be $50,873. The additional amount of $873 would have been on his W-2 because his employer would have deducted this amount. Yes, you calculate the $873 additional tax but because it was already withheld by the employer, it is considered tax withheld, a credit towards the tax liability calculated on the tax return