Need help with 6, 7a, 7b, 8b, 11b, 12a, 12b, 13b, 14, 16, 20, & 21a

Instructions Comprehensive Problem 4-1 Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 528, Las Vegas, NV 89125. Skylar is a stay-at- home parent and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter's father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2019, the Blacks provide over half of Alton's support. Skylar and Walt claim a $500 other dependent credit each for Rebecca and Alton. Walt's earnings from teaching are included on the W-2 (see separate tab). The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2019. They originally paid $76,000 for the home on July 3, 1994, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home. The Blacks received a 1099-DIV from their mutual fund investments (see separate tab) The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2019 and used by the Blacks for 15 days. The rental activity does not rise to the level to qualify for the QBI deduction. Pertinent information about the condo rental is as follows: Rental income $12,100 Mortgage Interest reported on Form 1098 8,600 Homeowners' association dues 5,200 Utilities 1,200 Maintenance 3,800 Depreciation (assume fully depreciated) 0 The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo. . Required: : Complete Form 1040 and the schedules and forms provided for the Blacks. Assume the taxpayers had health coverage for the entire year. Neither taxpayers wants to contribute to the presidential election campaign. If an amount box does not require an entry or the answer is zero, enter "O". . Do not round any percentages. If required, round your answers to the nearest dollar If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. a a . Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. . Walter's Forms W-2 and 1099-DIV Walter's earnings from teaching are: use file www.is.poulette Visit the IRS website at a Employee's social security number Safe, accurate, OMB No. 1545-0008 700-01-0002 FASTI Use b Employer identification number (EIN) 1 Wages, tips, other compensation 31-1239867 51,200.00 c Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 3 Social security wages 51,200.00 5 Medicare wages and tips 51,200.00 7 Social security tips 2 Federal income tax withheld 4,310.00 4 Social security tax withheld 3,174.40 6 Medicare tax withheld 742.40 8 Allocated tips d Control number 10 Dependent care benefits e Employee's first name and initial Last Suff. 11 Nonqualified plans 12a See instructions for box 12 1 country, and ZIP or foreign postal code name Walter Black 883 Scrub Brush Street, Apt 528 Las Vegas, NV 89125 po $7,900.00 d 9 Cash liquidation distributions 10 Noncash liquidation distributions 13 Statutory employee Retirement plan e 12b Third-party sick pay Las Vegas, NV 89125 $ d 14 Other 12c C C FATCA Nling requirement . d 11 Exempt-interest 12 Specified dividends private activity bond interest $ dividends $ 13 State 14 State 15 State tax identification withheld no $ e 12d Account number (see instructions) () C 0 Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service f Employee's address and ZIP code 15 State Employer's state ID 16 State wages, tips, number etc. NV 17 State income tax 18 Local wages, tips, etc. 19 Local Income tax 20 Locality name Form 1040 Complete Form 1040 for Walter and Skylar Black Form Department of the Treasury--Internal Revenue Service 2019 Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service. Form W-2 Wage and Tax The Blacks received the following 1099-DIV from their mutual fund investments: O O CORRECTED (if checked) PAYER'S name, street address, city OMB No. 1545- 1a Total ordinary or town, state or province, country dividends , 0110 ZIP or foreign postal code, and , telephone no. $ 1,425.00 2019 1b Qualified dividends Cyber Funds Equities Fund 41 Wall Street $ 1,002.00 Form 1099-DIV - New York, NY 10005 2a Total capital gain 2b Unrecap. distr. Sec. 1250 gain Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2019 CMB No. 1545-0074 IRS Use Only Filing Status Married filling Jointly Your first name and middle initial Last name Your social security number Walter Black 700-01-0002 If joint return, spouse's first name Last name Spouse's social security number and middle initial Black 222-43-7690 Skylar Home address (number and street). If you have a RO. ). a . Apt. no. box, see instructions 52B Presidential Election Campaign 883 Scrub Brush Street Check here if you, or your spouse if filing jointly, want $3 to go to City, town or post office, state, and ZIP code. If you have a foreign fund. Checking a box below will not change your tax or refund. address, also complete spaces below (see instructions). . Nome Las Vegas, NV 89125 Foreign country name Ir more than four dependents, see instructions and here province/state/county postal code Dividends and Distributions Foreign Foreign Copy B $ 6,540.34 2c Section 1202 gain For Recipient PAYER'S TIN RECIPIENT'S TIN $ 2d Collectibles (28%) gain $ Standard Deduction Someone can claim: None You: None Age/Blindness Spouse: None : Dependents (see instructions): (2) Social security number (3) Relationship to you (4) If qualifies for (see instructions): (1) First name Last name Child tax creditCredit for other dependents Rebecca Backin 411-66-2121 Mother No Yes Alton Black 343-22-8899 Father No Ver D 0 D 222-43-7690 $ 17- 1234326 RECIPIENT'S name This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 3 Nondividend distributions 4 Federal income tax withheld Skylar B. Black $ 1 , sW- 1 Wages, salaries, tips, etc. Attach Forms) W-2....... 1 51,200 2a Tax-exempt interest .. - 2a 2b Street address (including apt. no.) .) 5 5 Section 199A dividends $ 7 Foreign tax paid 6 Investment expenses $ & Foreign country or U.S. possession 3a b Taxable interest. Attach Sch. Bit required Ordinary dividends. Attach Sch. Bir required Taxable amount ... b 1,425 1,002 883 Scrub Brush Street #52B # Standard Deduction for - Single or Married filing separately. 3a Qualified dividends... $12,200 Married filing jointly or Qualifying widow(er), $24,400 4a IRA distributions ..... Head of household, $18,350 c Pensions and annuities 3b 40 45 City or town, state or province, $ 4c d Taxable amount..... 4d ! . If you checked any box under Standard Deduction, see instructions 5a Social security benefits Taxable amount ..... 5a Sb X 6 521,542 7a Capital gain or loss). Attach Schedule D ir required. If not required, check here ... (. . 7a Other income from Schedule 1, line 9............. Add lines 1, 2, 3, 46, 4, 5, 6, and 7a. This is your total income. 8a Adjustments to income from Schedule 1, line 22.............. Subtract line sa from line 7b. This is your adjusted gross income. 7b 8 8b 9 Standard deduction or itemized deductions (from Schedule A) .................................... 9 24,400 10 Qualified business income deduction. Attach Form 8995 or Form 10 8995-A................... 11a Add lines 9 and 10..... 11a 24,400 Taxable income. Subtract line 11a from line 8b.... 11b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) , ( Form 1040 (2019) Walter and Skylar Black 700-01-0002 Page 2 12a Tax (see Inst.) Check if any from Form(s): 1 8814 2 4972 30 12a b Add Schedule 2, line 3, and line 12a and enter the total.. 12b 13a Child tax credit or credit for other dependents ....... 13a 1,000 Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter 0... 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax.... 16 17 Federal income tax withheld from Forms W-2 and 1099 17 14.310 . If you have a qualifying 18 Other payments and refundable credits: child, attach Sch. EIC. a () a Earned income credit (EIC)..... 18a If you have nontaxable b Additional child tax credit. Attach Schedule 8812... combat pay, see 18b instructions. c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14...... 18d e Add lines 18a through 18d. These are your total other payments and refundable credits... 18e 19 Add lines 17 and 18e. These are your total payments ........ . 19 14,310 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid. 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a Direct deposit? Routing number (Mc Type: Checking Savings See instructions. >d Account number | | | 22 Amount of line 20 you want applied to your 2020 estimated tax... 22 Amount 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see Instructions ...... 23 You Owe Third Party Designee (Other than paid preparer) Sign 24 Estimated tax penalty (see instructions)............ Do you want to allow another person (other than your paid preparer) to discuss this return with Yes. Complete the IRS? See instructions. below. No Designee's Phone Personal identification name no. number (PIN) CI Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Instructions Comprehensive Problem 4-1 Skylar and Walter Black have been married for 25 years. They live at 883 Scrub Brush Street, Apt. 528, Las Vegas, NV 89125. Skylar is a stay-at- home parent and Walter is a high school teacher. His W-2 form is located on the next tab. Skylar's Social Security number is 222-43-7690 and Walt's is 700-01-0002. Neither are age 65 or older. The Blacks provide all the support for Skylar's mother, Rebecca Backin (Social Security number 411-66-2121), who lives in a nursing home in Reno, NV and has no income. Walter's father, Alton Black (Social Security number 343-22-8899), lives with the Blacks in Las Vegas. Although Alton received Social Security benefits of $7,600 in 2019, the Blacks provide over half of Alton's support. Skylar and Walt claim a $500 other dependent credit each for Rebecca and Alton. Walt's earnings from teaching are included on the W-2 (see separate tab). The Blacks moved from Maine to Nevada. As a result, they sold their house in Maine on January 4, 2019. They originally paid $76,000 for the home on July 3, 1994, but managed to sell it for $604,000. They spent $13,000 on improvements over the years. They are currently renting in Las Vegas while they look for a new home. The Blacks received a 1099-DIV from their mutual fund investments (see separate tab) The Blacks own a ski condo located at 123 Buncombe Lane, Brian Head, UT 84719. The condo was rented for 185 days during 2019 and used by the Blacks for 15 days. The rental activity does not rise to the level to qualify for the QBI deduction. Pertinent information about the condo rental is as follows: Rental income $12,100 Mortgage Interest reported on Form 1098 8,600 Homeowners' association dues 5,200 Utilities 1,200 Maintenance 3,800 Depreciation (assume fully depreciated) 0 The above amounts do not reflect any allocation between rental and personal use of the condo. The Blacks are active managers of the condo. . Required: : Complete Form 1040 and the schedules and forms provided for the Blacks. Assume the taxpayers had health coverage for the entire year. Neither taxpayers wants to contribute to the presidential election campaign. If an amount box does not require an entry or the answer is zero, enter "O". . Do not round any percentages. If required, round your answers to the nearest dollar If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers. a a . Special instructions for Form 8582: If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts. . Walter's Forms W-2 and 1099-DIV Walter's earnings from teaching are: use file www.is.poulette Visit the IRS website at a Employee's social security number Safe, accurate, OMB No. 1545-0008 700-01-0002 FASTI Use b Employer identification number (EIN) 1 Wages, tips, other compensation 31-1239867 51,200.00 c Employer's name, address, and ZIP code Las Vegas School District 2234 Vegas Valley Drive Las Vegas, NV 89169 3 Social security wages 51,200.00 5 Medicare wages and tips 51,200.00 7 Social security tips 2 Federal income tax withheld 4,310.00 4 Social security tax withheld 3,174.40 6 Medicare tax withheld 742.40 8 Allocated tips d Control number 10 Dependent care benefits e Employee's first name and initial Last Suff. 11 Nonqualified plans 12a See instructions for box 12 1 country, and ZIP or foreign postal code name Walter Black 883 Scrub Brush Street, Apt 528 Las Vegas, NV 89125 po $7,900.00 d 9 Cash liquidation distributions 10 Noncash liquidation distributions 13 Statutory employee Retirement plan e 12b Third-party sick pay Las Vegas, NV 89125 $ d 14 Other 12c C C FATCA Nling requirement . d 11 Exempt-interest 12 Specified dividends private activity bond interest $ dividends $ 13 State 14 State 15 State tax identification withheld no $ e 12d Account number (see instructions) () C 0 Form 1099-DIV (keep for your records) www.irs.gov/Form1099DIV Department of the Treasury - Internal Revenue Service f Employee's address and ZIP code 15 State Employer's state ID 16 State wages, tips, number etc. NV 17 State income tax 18 Local wages, tips, etc. 19 Local Income tax 20 Locality name Form 1040 Complete Form 1040 for Walter and Skylar Black Form Department of the Treasury--Internal Revenue Service 2019 Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service. Form W-2 Wage and Tax The Blacks received the following 1099-DIV from their mutual fund investments: O O CORRECTED (if checked) PAYER'S name, street address, city OMB No. 1545- 1a Total ordinary or town, state or province, country dividends , 0110 ZIP or foreign postal code, and , telephone no. $ 1,425.00 2019 1b Qualified dividends Cyber Funds Equities Fund 41 Wall Street $ 1,002.00 Form 1099-DIV - New York, NY 10005 2a Total capital gain 2b Unrecap. distr. Sec. 1250 gain Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2019 CMB No. 1545-0074 IRS Use Only Filing Status Married filling Jointly Your first name and middle initial Last name Your social security number Walter Black 700-01-0002 If joint return, spouse's first name Last name Spouse's social security number and middle initial Black 222-43-7690 Skylar Home address (number and street). If you have a RO. ). a . Apt. no. box, see instructions 52B Presidential Election Campaign 883 Scrub Brush Street Check here if you, or your spouse if filing jointly, want $3 to go to City, town or post office, state, and ZIP code. If you have a foreign fund. Checking a box below will not change your tax or refund. address, also complete spaces below (see instructions). . Nome Las Vegas, NV 89125 Foreign country name Ir more than four dependents, see instructions and here province/state/county postal code Dividends and Distributions Foreign Foreign Copy B $ 6,540.34 2c Section 1202 gain For Recipient PAYER'S TIN RECIPIENT'S TIN $ 2d Collectibles (28%) gain $ Standard Deduction Someone can claim: None You: None Age/Blindness Spouse: None : Dependents (see instructions): (2) Social security number (3) Relationship to you (4) If qualifies for (see instructions): (1) First name Last name Child tax creditCredit for other dependents Rebecca Backin 411-66-2121 Mother No Yes Alton Black 343-22-8899 Father No Ver D 0 D 222-43-7690 $ 17- 1234326 RECIPIENT'S name This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 3 Nondividend distributions 4 Federal income tax withheld Skylar B. Black $ 1 , sW- 1 Wages, salaries, tips, etc. Attach Forms) W-2....... 1 51,200 2a Tax-exempt interest .. - 2a 2b Street address (including apt. no.) .) 5 5 Section 199A dividends $ 7 Foreign tax paid 6 Investment expenses $ & Foreign country or U.S. possession 3a b Taxable interest. Attach Sch. Bit required Ordinary dividends. Attach Sch. Bir required Taxable amount ... b 1,425 1,002 883 Scrub Brush Street #52B # Standard Deduction for - Single or Married filing separately. 3a Qualified dividends... $12,200 Married filing jointly or Qualifying widow(er), $24,400 4a IRA distributions ..... Head of household, $18,350 c Pensions and annuities 3b 40 45 City or town, state or province, $ 4c d Taxable amount..... 4d ! . If you checked any box under Standard Deduction, see instructions 5a Social security benefits Taxable amount ..... 5a Sb X 6 521,542 7a Capital gain or loss). Attach Schedule D ir required. If not required, check here ... (. . 7a Other income from Schedule 1, line 9............. Add lines 1, 2, 3, 46, 4, 5, 6, and 7a. This is your total income. 8a Adjustments to income from Schedule 1, line 22.............. Subtract line sa from line 7b. This is your adjusted gross income. 7b 8 8b 9 Standard deduction or itemized deductions (from Schedule A) .................................... 9 24,400 10 Qualified business income deduction. Attach Form 8995 or Form 10 8995-A................... 11a Add lines 9 and 10..... 11a 24,400 Taxable income. Subtract line 11a from line 8b.... 11b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) , ( Form 1040 (2019) Walter and Skylar Black 700-01-0002 Page 2 12a Tax (see Inst.) Check if any from Form(s): 1 8814 2 4972 30 12a b Add Schedule 2, line 3, and line 12a and enter the total.. 12b 13a Child tax credit or credit for other dependents ....... 13a 1,000 Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter 0... 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax.... 16 17 Federal income tax withheld from Forms W-2 and 1099 17 14.310 . If you have a qualifying 18 Other payments and refundable credits: child, attach Sch. EIC. a () a Earned income credit (EIC)..... 18a If you have nontaxable b Additional child tax credit. Attach Schedule 8812... combat pay, see 18b instructions. c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14...... 18d e Add lines 18a through 18d. These are your total other payments and refundable credits... 18e 19 Add lines 17 and 18e. These are your total payments ........ . 19 14,310 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid. 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a Direct deposit? Routing number (Mc Type: Checking Savings See instructions. >d Account number | | | 22 Amount of line 20 you want applied to your 2020 estimated tax... 22 Amount 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see Instructions ...... 23 You Owe Third Party Designee (Other than paid preparer) Sign 24 Estimated tax penalty (see instructions)............ Do you want to allow another person (other than your paid preparer) to discuss this return with Yes. Complete the IRS? See instructions. below. No Designee's Phone Personal identification name no. number (PIN) CI Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge