Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help with 13,14, & 15. let me know if anymore information is needed or if any pics are too blurry! thank you! inal Tax
Need help with 13,14, & 15. let me know if anymore information is needed or if any pics are too blurry! thank you!
inal Tax Return Print item Comprehensive Problem 1 - Part 1: Taxpayer Information, Form 1040, Schedules 1, 2, and 3, Schedule A, and Schedule B. Noah and Joan Arc's Tax Return Note: This problem is divided into three parts. You will need to complete some of the forms in the other parts in order to determine the amounts to be used on Form 1040. Some of the data information will be reproduced in the other parts for convenience. Noah and Joan Arc live with their family in Dayton, OH, Noah's Social Security number is 434-11-3311. Noah was born on February 22, 1985, and Joan was born on July 1, 1986. Both enjoy good health and eyesight. Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton 1. The Arcs have two children, a son named Shem (Social Security number 598-01-2345), born on March 21, 2013, and a daughter named Nora (Social Security number 554-33-2411), born on December 3, 2016. They received a statement from Roundup Day Care Center (located on a separate tab) regarding the cost of child care provided for Nora. 2. Joan and Noah brought a folder of tax documents (see Forms W-2 and 1098). In addition, they received a Substitute 1099 Statement from Charlotte Squab Finandal Services (located on a separate tab) regarding their stock transactions for the year 3. Noah's pet store is located at 1415 S. Patterson Blvd, Dayton, OH 45409. The name of the store is "The Arc,' and its taxpayer identification number is 95-9876556. Since you handle Noah's bookkeeping, you have printed the income statement from your Quickbooks software, shown in the table below. The Arc did not claim the COVID-related provisions for the employee retention credit or sick and family leave credits but Noah did defer his self-employment taxes related to The Arc. He estimates 77.5 percent of the profits can be allocated to the period March 27, 2020 through December 31, 2020 The Arc 95-9876556 Income Statement For the Year Ended December 31, 2020 Revenue: $143,500.00 Gross Sales Less: Sales Returns and Allowances Net Sales Cost of Goods Sold: Beginning Inventory Add: Purchases $143,500.00 $10,250.00 > 62,150.00 $72,400.00 10,000.00 62,400.00 $81,100.00 Less: Ending Inventory Cost of Goods Sold Gross Profit (Loss) Expenses: Dues and Subscriptions Estimated Federal Tax Payments Estimated State Tax Payments Insurance Meals and Entertainment Miscellaneous 7,500.00 3,800.00 3,950.00 1,400.00 Payroll Taxes 3,830.00 Final Tax Return Print item Medical co-pays for doctor visits 700 Mortgage Interest for purchase of home (See Form 1098) Tax return preparation fees 350 Credit card interest 220 Automobile insurance premiums 600 Uniforms for Joan 125 Contribution to Noah's individual retirement account (made on April 1, 2021) 6,000 7. Noah has a long-term capital loss carryover from last year of $2,313. 8. Noah and Joan own a condo and use it as a rental property. The condo is located at 16 Oakwood Ave, Unit A, Dayton, OH 45409. Noah provides the management services for the rental including selection of tenants, maintenance, repairs, rent collection, and other services as needed. On average, Noah spends about 2 hours per week on the rental activity. It was rented for 365 days. The revenue and expenses for the year are as follows: Rental income Insurance $14,000 600 5,700 Interest expense Property taxes Miscellaneous expenses 1,000 700 The home was acquired for $82,500 in 2004. No improvements have been made to the property. 9. The Arcs pald Ohio general sales tax of $1,076 during the year 10. The Arcs received a $3,400 EIP in 2020, Final Tax Return Print Item 1 30,350 Attach Sch. Bir required 2b 3b 1,9227 4b 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest. Za b Taxable interest 3a Qualified dividends 3a 1,922 v b Ordinary dividends 4a IRA distributions. 4a b Taxable amount 5a Pensions and annuities 5a d Taxable amount 6a Social security benefits b Taxable amount 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 9 9 Add lines 1, 2b, 36, 4b, 56, 66, 7, and 8. This is your total income. 10 Adjustments to Income: 5b 6b . 7 7 11,177 8 38,050 9 81,499 Standard Deduction for Single or Married filing separately, $12,400 Married filing jointly or Qualifying widow(er), $24,800 Head of household, $18,650 If you checked any box under Standard Deduction, see Instructions 8,477 a From Schedule 1, line 22 10a b Charitable contributions If you take the standard deduction, See instructions.. c Add lines 10a and 10b. These are your total adjustments to income 11 Subtract line 10c from line 9. This is your adjusted gross income 12 Standard deduction or itemized deductions (from Schedule A) 10b 300 10c 8,777 11 72,722 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 12 24,800 14 Add lines 12 and 13 13 3,975 X 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -- 14 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 15 Cat. No. 11320B Form 1040 (2020) Check My Work Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started