Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311. Noah was born on February 22, 1984, and Joan was born on July 1, 1985. Both enjoy good health and eyesight. Noah owns and operates a pet store and Joan is a firefighter for the city of Dayton
- The Arcs have two children, a son named Billie Bob (Social Security number 598-01- 2345), born on March 21, 2012, and a daughter named Mary Sue (Social Security number 554-33-2411), born on December 3, 2015.
- Joan and Noah brought a folder of tax documents located in the tax documents folder.
- Noahs 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 Noahs bookkeeping, you have printed the income statement from your Quickbooks software, you will find this in the Tax Documents Folder.
- Detail of The Arcs meals and entertainment:
| $ 400 | | Meals associated with business travel |
| 60 | | Overtime meals for employees |
| 878 | | Sports tickets for entertaining large customers |
| $ 1,338 | | Total meals and entertainment |
- Travel costs are business-related and do not include meals.
- Noah and Joan paid the following amounts during the year (all by check):
| Political Contributions | | $ 250 |
| Church donations (for which a written acknowledgment was received) | | 5,025 |
| Real estate taxes on their home | | 2,375 |
| 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 Noahs individual retirement account (made on April 1, 2020) | | 6,000 |
- Noah has a long-term capital loss carryover from last year of $2,400.
- 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. The revenue and expenses for the year are as follows:
| Rental income | | $ 13,800 |
| Insurance | | 575 |
| Interest expense | | 6,870 |
| Property taxes | | 1,016 |
| Miscellaneous expenses | | 700 |
| Depreciation on Rental Home | | 3,091 |
- The Arcs paid Ohio general sales tax of $976 during the year.
Required: You are to prepare their federal income tax return in good form, signing the return as the preparer. Do not complete an Ohio state income tax return. Make realistic assumptions about any missing data (addresses, etc.) that you may need. The following forms and schedules are required:
| Form 1040 | | Schedule E |
| Schedule 1 | | Schedule SE |
| Schedule 2 | | Form 2441 |
| Schedule 3 | | Form 8812 |
| Schedule A | | Form 8949 |
| Schedule B | | Form 8995 |
| Schedule C | | Qualified Dividends and Capital Gain Tax Worksheet |
| Schedule D | | Child Tax Credit Worksheet |
Charlotte Squab Financial Services 123 Wall Street New York, NY 10005 Joan and Noah Arc 1265 W. Riverview Avenue Dayton, OH 45402 SSN: 456-87-5432 Date December 31, 2019 Dividends Substitute 1099 Statement Box la Ordinary Dividends Box lb Quaified Dividends Box 2a Gain Distribe Box & Federal Income Tas withheld Box & Foreign Tax Paid Box 10-Tax exempt Dividends Payor ExxonMobil 312.00 312.00 0.00 0.00 000 0.00 Texas Util 1.188.00 1.188.00 0.00 0.00 0.00 0.00 CS Growth Fund 418.00 418.00 245.00 0.00 19.00 0.00 Stock Transactions Basis (reported to IRS) Description Date Aca Date Sold Proceeds 100 shs. Blue Corp 02/11/2009 08/15/2019 4537.00 2.576.00 50 shs. Yellow Corp 01/13/2019 06/05/2019 6.000.00 5,345.00 25 shs. Red Co. 10/02/2010 10/07/2019 12212.00 1.655.00 Visit the IRS website at sefile www.ra.gowanie Sate, accurate, TAS OMB No 1545-0006 FASTIUS 1 Wages, tps her comparation 30,240.00 Employee's Soc security number 456-87-5432 b Employer identification number (EN) 33-4382966 Employer's name, address and 2IP code City of Dayton Fire and Rescue 123 Warren Street Dayton, OH 45402 3 Social Securty wages 30,240.00 2 Federal income tax withold 5,120.00 4 Social Security tax withheld 1,874.88 6 Medicare sex withheld 438.48 8 Alocated to 5 Medicare este 30,240.00 7 Social Securty tips d Control number 10 Depon dont care borefts . Employee's first name and initial Last name S.11 Nonqualified plans 17a See Instructions for bax 12 IDD 12,200.00 13 Errent ty 12D BOY Joan Arc 1265 W. Riverview Ave. Dayton, OH 45402 14 Other 12c 120 1 Employee's address and ZIP code 15 Sante Employer's state ID number 18 Local wages, tips, etc. 19 Local income Tax 20 Locate OHL 1126-87021 16 Siate wagos, tips, etc. 17 State income tax 30,240.00 1,850.00 Department of the Treasury Internal Revenue Service W-2 Wage and Tax 2019 Form Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service Mortgage Interest Statement Copy C For Recipient/ Lender DVOID CORRECTED RECIPIENT'S/.ENDER'S am stront address, city or town, state or OMB No. 1545-1380 province, country, ZIP or foreign postal code, and telephone no. Chase Mortgage 2019 100 Park Avenue New York, NY 10017 Form 1098 1 Mortgage Interest received from payers borrowen's $ 11,100.00 RECIPIENT'S LENDERS TIN PAYER S/BORROWER'S TIN 2 Outstanding mortgage 3 Mortgage origination date principal 13-4296127 03/13/2010 $ 274,200.00 434-11-3311 4 Refund of overnid 5 Mortgage Insurance interest premiums PAYER'S/BORROWER'S name $ Noah and Joan Arc 8 Points paid on purchase of principal residence $ Street address including apt. no.) 7 address of property securing mortgage is the same IS PAYER'S/BORROWER'S address, check the book, or enter 1265 W. Riverview Avenue the address or description in box B. City or town, state or province, country, and ZP or foreign postal code 8 Address or description of property securing mortgages Instructions) Dayton, OH 45402 For Privacy Act and Paperwork Reduction Act Notice, see the 2019 General Instructions for Certain Information Returns Number of properties securing the 10 Other mortgage 11 Mortgage Acquisition date Account number (see instructions Form 1098 www.lrs.gowForm1068 Department of the Treasury - Internal Revenue Service $ 143,245.00 $0.00 $ 143,245.00 The Arc 95-9876556 Income Statement For the Year Ended December 31, 2019 Revenue: Gross Sales Less: Sales Returns and Allowances Net Sales Cost of Goods Sold: Beginning Inventory $10,204.00 Add: Purchases $62,111.00 $72,315.00 Less: Ending Inventory $9,987.00 Cost of Goods Sold Gross Profit (Loss) Expenses: Dues and Subscriptions $0.00 Estimated Federal Tax Payments $8,000.00 Estimated State Tax Payments $4,000.00 Insurance $780.00 Meals and Entertainment $1,338.00 Miscellaneous $0.00 Payroll Taxes $3,840.00 Professional Fees $1,700.00 Rent $8,400.00 Travel $1,231.00 Utilities $1,254.00 Vehicle Expenses $0.00 Wages $25,113.00 Total Expenses $62,328.00 $80,917.00 $55,656.00 Net Operating Income $25,261.00 ROUNDUP DAY CARE CENTER 245 N. WILKINSON STREET DAYTON, OH 45402 January 12, 2020 Joan and Noah Arc 1265 W. Riverview Avenue Dayton, OH 45402 Dear Joan and Noah, Thank you for a great 2019 at Roundup! We appreciate your patronage during the year and hope to continue to provide excellent service for Mary Sue in 2020. We have provided the tax information for calendar year 2019 below. Please let us know if you need any additional information. Sincerely, Charles F. Burgundian Charles F. Burgundian Executive Director, Roundup Day Care EIN 54-0983456 Date of service January 1, 2019 - December 31, 2019 Amount Paid $3,000.00 Child Mary Sue Arc OMB No. 1545-0074 SCHEDULE 1 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Name(s) shown on Form 1040 or 1040-SR 2019 Attachment Sequence No. 01 Your social security number Yes No b At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? ..... Partl Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received 2a Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 3 4 Other gains or losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 5 6 Farm income or (loss). Attach Schedule F 6 7 Unemployment compensation. 7 8 Other income. List type and amount 8 9 10 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7 Part II Adjustments to Income 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans 16 Self-employed health insurance deduction 17 Penalty on early withdrawal of savings 18a Alimony paid. b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 20 Student loan interest deduction 21 Tuition and fees. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 11 12 13 14 15 16 17 18a 19 20 21 22 OMB No. 1545-0074 SCHEDULE 2 (Form 1040 or 1040-SR) Additional Taxes Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form 1040 for instructions and the latest information. 2019 Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 or 1040-SR Attachment Sequence No. 02 Your social security number Part Tax 1 Alternative minimum tax. Attach Form 6251 1 2 Excess advance premium tax credit repayment. Attach Form 8962 2 3 Add lines 1 and 2. Enter here and include on Form 1040 or 1040-SR, line 12b 3 Part II Other Taxes 4 Self-employment tax. Attach Schedule SE 4 5 Unreported social security and Medicare tax from Form: a 4137 b 8919 5 6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required. .. 6 7a Household employment taxes. Attach Schedule H 7a b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 7b 8 Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s) 8 9 Section 965 net tax liability installment from Form 965-A 9 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 15 10 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71478U Schedule 2 (Form 1040 or 1040-SR) 2019 SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040 or 1040-SR) Go to www.irs.gov/Schedule A for instructions and the latest information. (Rev. January 2020) 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number 1 Medical and Dental Expenses 3 Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040 or 1040-SR, line 86 2 3 Multiply line 2 by 7.5% (0.075) 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-O- 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general taxes ins income taxes, check this box b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c. e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount 5a 5b 5c 5d 5e 6 7 Interest You Paid Caution: Your mortgage interest deduction may be imited (see instructions). 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8 8C 8d 8e 9 8b c Points not reported to you on Form 1098. See instructions for special rules d Mortgage insurance premiums (see instructions) e Add lines Ba through 8d. 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines 8e and 9 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions 11 Caution: If you 12 Other than by cash or check. If you made any gift of $250 or more, made a gift and got a benefit for it see instructions. You must attach Form 8283 if over $500. 12 see instructions. 13 Carryover from prior year 13 14 Add lines 11 through 13. 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 15 Other 16 Other from list in instructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 9 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C Schedule A (Form 1040 or 1040-SR) 2019 OMB No. 1545-0074 SCHEDULE B (Form 1040 or 1040-SR) Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Interest and Ordinary Dividends Go to www.irs.gov/Schedule for instructions and the latest information. Attach to Form 1040 or 1040-SR. 2019 Attachment Sequence No. 08 Your social security number 4 Part 1 1 List name of payer. If any interest is from a seller-financed mortgage and the Amount buyer used the property as a personal residence, see the instructions and list this Interest interest first. Also, show that buyer's social security number and address (See instructions and the instructions for Forms 1040 and 1040-SR, line 2b.) Note: If you 1 received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 2 Add the amounts on line 1 2 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815. 3 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 25 4 Note: If line 4 is over $1,500, you must complete Part III. Amount Part 11 5 List name of payer Ordinary Dividends (See instructions and the instructions for Forms 1040 and 1040-SR, line 3b.) Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3b 6 Note: If line 6 is over $1,500, you must complete Part III. Part III You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to a foreign trust. Yes No Foreign 7a At any time during 2019, did you have a financial interest in or signature authority over a financial Accounts account (such as a bank account, securities account, or brokerage account) located in a foreign and Trusts country? See instructions Caution: If If "Yes," are you required to file FinCEN Form 114, Report of Foreign Bank and Financial required, failure Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 to file FinCEN Form 114 may and its instructions for filing requirements and exceptions to those requirements result in b If you are required to file FinCEN Form 114, enter the name of the foreign country where the substantial financial account is located penalties. See 8 During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a instructions. foreign trust? If "Yes," you may have to file Form 3520. See instructions 6 SCHEDULEC Profit or Loss From Business OMB No. 1545-0074 (Form 1040 or 1040-SR) (Sole Proprietorship) 2019 Department of the Treasury Go to www.irs.gov/Schedule for instructions and the latest information. Attachment Intemal Revenue Service (99) Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) A Principal business or profession, including product or service (see instructions) B Enter code from instructions E F G H No 1 2 3 4 5 4 7 8 19 9 10 11 20b 21 22 Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) Business address (including suite or room no.) City, town or post office, state, and ZIP code Accounting method: (1) Cash (2) Accrual (3) Other (specify) Did you "materially participate in the operation of this business during 2019? If "No," see instructions for limit on losses Yes No If you started or acquired this business during 2019, check here. Did you make any payments in 2019 that would require you to file Form(s) 1099? (see instructions) Yes No If "Yes," did you or will you file required Forms 1099? Yes Partl Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked. 2 Returns and allowances 3 Subtract line 2 from line 1 Cost of goods sold (from line 42) 5 Gross profit. Subtract line 4 from line 3 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 7 Gross income. Add lines 5 and 6. Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans instructions) 20 Rent or lease see instructions): 10 Commissions and fees a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) bOther business property 12 Depletion 12 21 Repairs and maintenance 13 Depreciation and section 179 22 Supplies (not included in Part III). expense deduction (not included in Part II) (see 23 Taxes and licenses 23 instructions). 13 24 Travel and meals: 14 Employee benefit programs a Travel (other than on line 19) 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions) 16 Interest (see instructions): 25 Utilities 25 a Mortgage (paid to barks, etc.) 16a 26 Wages (less employment credits). 26 b Other 16b 27a Other expenses (from line 48) 27a 17 Legal and professional services 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a . 28 29 Tentative profit or loss). Subtract line 28 from line 7. 29 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 30 Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and 31 trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity (see instructions). . If you checked 32a, enter the loss on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 32a All investment is at risk. 31 instructions). Estates and trusts, enter on Form 1041, line 3. 32b Some investment is not . If you checked 32b, you must attach Form 6198. Your loss may be limited. at risk. 24a 24b 31 DO Page 2 Schedule C (Form 1040 or 1040-SA) 2019 Part III Cost of Goods Sold (see instructions) 33 Cost c 34 Yes No Method(s) used to value closing inventory: Lower of cost or market Other (attach explanation) Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "'Yes," attach explanation. Inventory at beginning of year. If different from last year's closing inventory, attach explanation Purchases less cost of items withdrawn for personal use 35 35 36 36 37 Cost of labor. Do not include any amounts paid to yourself 37 38 Materials and supplies 38 39 Other costs 39 40 Add lines 35 through 39 40 41 Inventory at end of year 41 42 42 43 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562 When did you place your vehicle in service for business purposes? (month, day, year) of the total number of miles you drove your vehicle during 2019, enter the number of miles you used your vehicle for: Business b Commuting (see instructions) Was your vehicle available for personal use during off-duty hours? 44 c Other 45 Yes No 46 Do you (or your spouse) have another vehicle available for personal use? Yes No Yes No 47a Do you have evidence to support your deduction? bif "Yes," is the evidence written? Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. Yes No Charlotte Squab Financial Services 123 Wall Street New York, NY 10005 Joan and Noah Arc 1265 W. Riverview Avenue Dayton, OH 45402 SSN: 456-87-5432 Date December 31, 2019 Dividends Substitute 1099 Statement Box la Ordinary Dividends Box lb Quaified Dividends Box 2a Gain Distribe Box & Federal Income Tas withheld Box & Foreign Tax Paid Box 10-Tax exempt Dividends Payor ExxonMobil 312.00 312.00 0.00 0.00 000 0.00 Texas Util 1.188.00 1.188.00 0.00 0.00 0.00 0.00 CS Growth Fund 418.00 418.00 245.00 0.00 19.00 0.00 Stock Transactions Basis (reported to IRS) Description Date Aca Date Sold Proceeds 100 shs. Blue Corp 02/11/2009 08/15/2019 4537.00 2.576.00 50 shs. Yellow Corp 01/13/2019 06/05/2019 6.000.00 5,345.00 25 shs. Red Co. 10/02/2010 10/07/2019 12212.00 1.655.00 Visit the IRS website at sefile www.ra.gowanie Sate, accurate, TAS OMB No 1545-0006 FASTIUS 1 Wages, tps her comparation 30,240.00 Employee's Soc security number 456-87-5432 b Employer identification number (EN) 33-4382966 Employer's name, address and 2IP code City of Dayton Fire and Rescue 123 Warren Street Dayton, OH 45402 3 Social Securty wages 30,240.00 2 Federal income tax withold 5,120.00 4 Social Security tax withheld 1,874.88 6 Medicare sex withheld 438.48 8 Alocated to 5 Medicare este 30,240.00 7 Social Securty tips d Control number 10 Depon dont care borefts . Employee's first name and initial Last name S.11 Nonqualified plans 17a See Instructions for bax 12 IDD 12,200.00 13 Errent ty 12D BOY Joan Arc 1265 W. Riverview Ave. Dayton, OH 45402 14 Other 12c 120 1 Employee's address and ZIP code 15 Sante Employer's state ID number 18 Local wages, tips, etc. 19 Local income Tax 20 Locate OHL 1126-87021 16 Siate wagos, tips, etc. 17 State income tax 30,240.00 1,850.00 Department of the Treasury Internal Revenue Service W-2 Wage and Tax 2019 Form Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return This information is being furnished to the Internal Revenue Service Mortgage Interest Statement Copy C For Recipient/ Lender DVOID CORRECTED RECIPIENT'S/.ENDER'S am stront address, city or town, state or OMB No. 1545-1380 province, country, ZIP or foreign postal code, and telephone no. Chase Mortgage 2019 100 Park Avenue New York, NY 10017 Form 1098 1 Mortgage Interest received from payers borrowen's $ 11,100.00 RECIPIENT'S LENDERS TIN PAYER S/BORROWER'S TIN 2 Outstanding mortgage 3 Mortgage origination date principal 13-4296127 03/13/2010 $ 274,200.00 434-11-3311 4 Refund of overnid 5 Mortgage Insurance interest premiums PAYER'S/BORROWER'S name $ Noah and Joan Arc 8 Points paid on purchase of principal residence $ Street address including apt. no.) 7 address of property securing mortgage is the same IS PAYER'S/BORROWER'S address, check the book, or enter 1265 W. Riverview Avenue the address or description in box B. City or town, state or province, country, and ZP or foreign postal code 8 Address or description of property securing mortgages Instructions) Dayton, OH 45402 For Privacy Act and Paperwork Reduction Act Notice, see the 2019 General Instructions for Certain Information Returns Number of properties securing the 10 Other mortgage 11 Mortgage Acquisition date Account number (see instructions Form 1098 www.lrs.gowForm1068 Department of the Treasury - Internal Revenue Service $ 143,245.00 $0.00 $ 143,245.00 The Arc 95-9876556 Income Statement For the Year Ended December 31, 2019 Revenue: Gross Sales Less: Sales Returns and Allowances Net Sales Cost of Goods Sold: Beginning Inventory $10,204.00 Add: Purchases $62,111.00 $72,315.00 Less: Ending Inventory $9,987.00 Cost of Goods Sold Gross Profit (Loss) Expenses: Dues and Subscriptions $0.00 Estimated Federal Tax Payments $8,000.00 Estimated State Tax Payments $4,000.00 Insurance $780.00 Meals and Entertainment $1,338.00 Miscellaneous $0.00 Payroll Taxes $3,840.00 Professional Fees $1,700.00 Rent $8,400.00 Travel $1,231.00 Utilities $1,254.00 Vehicle Expenses $0.00 Wages $25,113.00 Total Expenses $62,328.00 $80,917.00 $55,656.00 Net Operating Income $25,261.00 ROUNDUP DAY CARE CENTER 245 N. WILKINSON STREET DAYTON, OH 45402 January 12, 2020 Joan and Noah Arc 1265 W. Riverview Avenue Dayton, OH 45402 Dear Joan and Noah, Thank you for a great 2019 at Roundup! We appreciate your patronage during the year and hope to continue to provide excellent service for Mary Sue in 2020. We have provided the tax information for calendar year 2019 below. Please let us know if you need any additional information. Sincerely, Charles F. Burgundian Charles F. Burgundian Executive Director, Roundup Day Care EIN 54-0983456 Date of service January 1, 2019 - December 31, 2019 Amount Paid $3,000.00 Child Mary Sue Arc OMB No. 1545-0074 SCHEDULE 1 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Name(s) shown on Form 1040 or 1040-SR 2019 Attachment Sequence No. 01 Your social security number Yes No b At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? ..... Partl Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received 2a Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 3 4 Other gains or losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E. 5 6 Farm income or (loss). Attach Schedule F 6 7 Unemployment compensation. 7 8 Other income. List type and amount 8 9 10 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7 Part II Adjustments to Income 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans 16 Self-employed health insurance deduction 17 Penalty on early withdrawal of savings 18a Alimony paid. b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 20 Student loan interest deduction 21 Tuition and fees. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 11 12 13 14 15 16 17 18a 19 20 21 22 OMB No. 1545-0074 SCHEDULE 2 (Form 1040 or 1040-SR) Additional Taxes Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form 1040 for instructions and the latest information. 2019 Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 or 1040-SR Attachment Sequence No. 02 Your social security number Part Tax 1 Alternative minimum tax. Attach Form 6251 1 2 Excess advance premium tax credit repayment. Attach Form 8962 2 3 Add lines 1 and 2. Enter here and include on Form 1040 or 1040-SR, line 12b 3 Part II Other Taxes 4 Self-employment tax. Attach Schedule SE 4 5 Unreported social security and Medicare tax from Form: a 4137 b 8919 5 6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required. .. 6 7a Household employment taxes. Attach Schedule H 7a b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 7b 8 Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s) 8 9 Section 965 net tax liability installment from Form 965-A 9 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 15 10 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71478U Schedule 2 (Form 1040 or 1040-SR) 2019 SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040 or 1040-SR) Go to www.irs.gov/Schedule A for instructions and the latest information. (Rev. January 2020) 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number 1 Medical and Dental Expenses 3 Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040 or 1040-SR, line 86 2 3 Multiply line 2 by 7.5% (0.075) 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-O- 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general taxes ins income taxes, check this box b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c. e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount 5a 5b 5c 5d 5e 6 7 Interest You Paid Caution: Your mortgage interest deduction may be imited (see instructions). 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8 8C 8d 8e 9 8b c Points not reported to you on Form 1098. See instructions for special rules d Mortgage insurance premiums (see instructions) e Add lines Ba through 8d. 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines 8e and 9 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions 11 Caution: If you 12 Other than by cash or check. If you made any gift of $250 or more, made a gift and got a benefit for it see instructions. You must attach Form 8283 if over $500. 12 see instructions. 13 Carryover from prior year 13 14 Add lines 11 through 13. 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 15 Other 16 Other from list in instructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 9 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C Schedule A (Form 1040 or 1040-SR) 2019 OMB No. 1545-0074 SCHEDULE B (Form 1040 or 1040-SR) Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Interest and Ordinary Dividends Go to www.irs.gov/Schedule for instructions and the latest information. Attach to Form 1040 or 1040-SR. 2019 Attachment Sequence No. 08 Your social security number 4 Part 1 1 List name of payer. If any interest is from a seller-financed mortgage and the Amount buyer used the property as a personal residence, see the instructions and list this Interest interest first. Also, show that buyer's social security number and address (See instructions and the instructions for Forms 1040 and 1040-SR, line 2b.) Note: If you 1 received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 2 Add the amounts on line 1 2 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815. 3 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 25 4 Note: If line 4 is over $1,500, you must complete Part III. Amount Part 11 5 List name of payer Ordinary Dividends (See instructions and the instructions for Forms 1040 and 1040-SR, line 3b.) Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3b 6 Note: If line 6 is over $1,500, you must complete Part III. Part III You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to a foreign trust. Yes No Foreign 7a At any time during 2019, did you have a financial interest in or signature authority over a financial Accounts account (such as a bank account, securities account, or brokerage account) located in a foreign and Trusts country? See instructions Caution: If If "Yes," are you required to file FinCEN Form 114, Report of Foreign Bank and Financial required, failure Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 to file FinCEN Form 114 may and its instructions for filing requirements and exceptions to those requirements result in b If you are required to file FinCEN Form 114, enter the name of the foreign country where the substantial financial account is located penalties. See 8 During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a instructions. foreign trust? If "Yes," you may have to file Form 3520. See instructions 6 SCHEDULEC Profit or Loss From Business OMB No. 1545-0074 (Form 1040 or 1040-SR) (Sole Proprietorship) 2019 Department of the Treasury Go to www.irs.gov/Schedule for instructions and the latest information. Attachment Intemal Revenue Service (99) Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) A Principal business or profession, including product or service (see instructions) B Enter code from instructions E F G H No 1 2 3 4 5 4 7 8 19 9 10 11 20b 21 22 Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) Business address (including suite or room no.) City, town or post office, state, and ZIP code Accounting method: (1) Cash (2) Accrual (3) Other (specify) Did you "materially participate in the operation of this business during 2019? If "No," see instructions for limit on losses Yes No If you started or acquired this business during 2019, check here. Did you make any payments in 2019 that would require you to file Form(s) 1099? (see instructions) Yes No If "Yes," did you or will you file required Forms 1099? Yes Partl Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked. 2 Returns and allowances 3 Subtract line 2 from line 1 Cost of goods sold (from line 42) 5 Gross profit. Subtract line 4 from line 3 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 7 Gross income. Add lines 5 and 6. Part II Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 18 Office expense (see instructions) 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans instructions) 20 Rent or lease see instructions): 10 Commissions and fees a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) bOther business property 12 Depletion 12 21 Repairs and maintenance 13 Depreciation and section 179 22 Supplies (not included in Part III). expense deduction (not included in Part II) (see 23 Taxes and licenses 23 instructions). 13 24 Travel and meals: 14 Employee benefit programs a Travel (other than on line 19) 14 b Deductible meals (see 15 Insurance (other than health) 15 instructions) 16 Interest (see instructions): 25 Utilities 25 a Mortgage (paid to barks, etc.) 16a 26 Wages (less employment credits). 26 b Other 16b 27a Other expenses (from line 48) 27a 17 Legal and professional services 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a . 28 29 Tentative profit or loss). Subtract line 28 from line 7. 29 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30 30 Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and 31 trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity (see instructions). . If you checked 32a, enter the loss on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 32a All investment is at risk. 31 instructions). Estates and trusts, enter on Form 1041, line 3. 32b Some investment is not . If you checked 32b, you must attach Form 6198. Your loss may be limited. at risk. 24a 24b 31 DO Page 2 Schedule C (Form 1040 or 1040-SA) 2019 Part III Cost of Goods Sold (see instructions) 33 Cost c 34 Yes No Method(s) used to value closing inventory: Lower of cost or market Other (attach explanation) Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If "'Yes," attach explanation. Inventory at beginning of year. If different from last year's closing inventory, attach explanation Purchases less cost of items withdrawn for personal use 35 35 36 36 37 Cost of labor. Do not include any amounts paid to yourself 37 38 Materials and supplies 38 39 Other costs 39 40 Add lines 35 through 39 40 41 Inventory at end of year 41 42 42 43 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562 When did you place your vehicle in service for business purposes? (month, day, year) of the total number of miles you drove your vehicle during 2019, enter the number of miles you used your vehicle for: Business b Commuting (see instructions) Was your vehicle available for personal use during off-duty hours? 44 c Other 45 Yes No 46 Do you (or your spouse) have another vehicle available for personal use? Yes No Yes No 47a Do you have evidence to support your deduction? bif "Yes," is the evidence written? Part V Other Expenses. List below business expenses not included on lines 8-26 or line 30. Yes No
