Note: This problem is for the 2019 tax year. Beth Jordan ve 2322 Skye Raad Mese, AZ 85201. She is an accountant with Mesa Manufacturing Company. 1203 Western Avenue, Mesa, AZ 85201 (emple dentification number 11-1111111). She also writes computer software programs for tax practitioners and has a part time to practice. Beth is single and has no dependents. Beth was born on July 4, 1973, and her Social Security numbers 12345-6785. She did not engage in a virtual currency transactions during the year and she wants to contribute to the Presidential Blection Campaign Fund The following information is shown on Beth's Wage and Tex Statement Commy W-2) for 2019. Line Description Amount 1 Wages, tips, other compensation $65,000.00 2 Federal income tax withheld 9,500.00 3 Secl Security wages 65,000.00 Social Security tax withheld 4,030.00 5 Medicare wages and tips 65,000.00 6 Medicare tax withheld 942.50 15 State Arizona 16 State wages, tips, etc. 65,000.00 17 State income tax withheld 1,954.00 During the year. Beth receved interest of $1,300 from Arizona Federal Savings and loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and 5650 from Orange Corporation. Each corporation reported Beth's dividend payments on a form 1099-OV. Beth received a $1,100 income tax refund from the state of Ancona on April 29, 2019. On her 2018 Federal income tax return, she used the standard deduction Fees earned from her part-time tax practice in 2019 totaled $3,000. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2019, Beth bought 500 shares of Grey Corporation common stock for $17.60 share. On September 12, 2019, Beth sold the stock for 514 share. Beth bought a used sport utility vehicle for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehicle to a friend for $6,500 On January 2, 2019, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2019, for $55 a share. Both stock transactions were reported to Beth on Form 1099-6; besis was not reported to the IRS During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business Cost of personal computer $7,000 Cost of printer 2,000 Furniture 3,000 Supplies 650 Fee paid to computer consultant 3,500 Beth elected to expense the maximum portion of the cost of the computer printer, and furniture allowed under the provisions of 5 179. These items were placed in service on January 15, 2019, and used 100% in her business, Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1.420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for doctor interest to credit card bills and hospital bills. Medical Insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated taxes of $1,000. 9,500.00 3 Social Security were 65,000.00 4 4,030.00 S Medicare wages and tipe 65,000.00 6 Medicare withheld 942.50 15 State Arizona 16 Seate wages, es 65,000.00 17 State come tax whid 1.854.00 Durma the year Beth received interest of $1,300 from Arcona Federal Savings and Loan and $400 from Arion State Bank. Each financial met reported the interest income on Form 1099-INT. She received qualified dividends of so from Blue Corporation, $750 from Green Corporation, and so from Orange Corporation. Each corporation reported e' dividend payments on a Form 1099-DIV. Beth received $1.100 income tax refund from the state of Arizona on April 20, 2019. On her 2018 Federal income tax return, she used the standard dediction Fees earned from her part-time tax practice in 2019 totaled $3.500. She pod 5600 to have the tax returns processed by a computerized TAK service. On February 8, 2019, Beth bought 500 sures of Gray Corporation common stock for $17.50 share on September 12, 2019, Beth sold the stock for $14 share Beth bought used sport Utility vehide for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehide to afnendfor $6,500 On January 2, 2019, tieth cuired 100 shares of Blue Corporation common stock for $30 a share. She wold the stock on December 19, 2019, for $55 a share. Both stock transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS During the year, Beth recorde revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business Cost of personal computer $7,000 Cost of printer 2.000 Furniture 3.000 Supplies 650 Fee paid to computer consultant 3.500 Beth elected to expense the maximum portion of the cost of the computer printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2019, and used 100% in her business Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals. During the year Beth paid $500 for prescription medicines and 52,875 for doctor interest to credit card bills and hospital bills, Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her hom mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,000 to various qualifying chanties during the year. Professional dues and subscriptions totaled $350 Beth paid estimated taxes of $1,000 Required: Compute the net tax payable or refund due for Beth R. Jordan for 2019. You will need Form 1040, (and its Schedules 1,2,3, B, C, D, and SE) and Forms 4562, 8995 and 8949 and the Qualified Dividends and Capital Gain Tax Worksheet. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "o". Enter all amounts as positive numbers, unless instructed otherwise. It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2019 Tax Rate Schedule provided. Do not use the Tax Tables. Competerem 10 for theth Jordan for 2010 2019 OM 1545-004 SRS UE O 1040 U.S. Individual Income Tax Return Filling Stage Your first name and Beth Jordan Breton spouse' me and mental Last name Apt. No Home adrese (namber and street) you have a Robow, instructions Your social security number 123-456785 Spouse's sodal security number Presidential Election campaign Check here you, or your spouse filing jointly want to te this fund. Checkog a box below will not change your or refund. olyton or post offices, and ZIP code. If you have a foreign address, a complete spaces below Me, AZ 85201 Foreign country name Foren province/statcounty Foreign postal code of more than four dependents, see Instructions and here Standard Deduction Someone can damine YON Age/Blindness Spouse Dependent (ructions) (1) (2) Social security number (a) Rohip to you (4) quotes for Cree instruction Child to che Credit for other dependente 1 65,000 te ab 3 2.200 4b 4d Wees salaries, Mech Forms) W-2 Table interest Attach sich 2a required Ordinary dividends. Antech sch 2 Quid dividende. a 2.200 required 4a TRA ne da Table amount Pengendarnutie d 40 Table amount Sa Social securny benefit Sa b Taxable amount Capital gain or Dow). Attach Schedule Drequired. If not required, check here 7. Other income free Schedule 1, line 9 Addnes 1, 2, 3, 46, 4d, 56, 6, and 7. This is your total income Adments to come from Schedule 1. line 22 Subtract line from line. This is your adjusted gross income Standard Deduction for segle Hamed separately $12,200 Married line Quering widower), Mende household $16,350 If you checked any box under samt 1,200 ody To 3,050 $94.400 7b 72,150 Ba 216 72,93 2 9 Standard Deduction, see Standard deduction or itemized deductions from Schedule A) Instruction, 12,200 10 Qualified business income decoction. Attach Form 6995 or 567 Form $995- 10 118 Addnes 9 and 10 b Taxable income. Subtract line ta from line th. If were or less, enter -- BAA For Disease Privacy Act, and Paperwork Reduction Act Notice, see separate Instructions lla 12,767 111 60,167 Form 10-40 (2019) Form 1040 (2015) 123-45-6785 Page 2 Beth R. Jordan 12a Tax (see inst.) Check it any from Form): 1 08814 2 0 4972 30 12 3.857 X 3 2.00 Standard Det for - gler Mamedling 6 1.200 Ordinary dividende Atach sch 2,200 3. Qualthed dividende Brequired 4 IRA tritone 4 Towable amount d Persons and annuities Table amount Sa Social security benefits Tawatte amount Capital gain or loss). Anach Schedule Drequired. If not required, check here Ya Other income from schedule 1. line Add Linea 1, 2, 3, 4, 4, 5, 6, and ta. This is your total income Se Adjustments to income from Schedule 1. line 22 Subtract in a frontline Th. This is your adjusted gross income 7 2,oso 73,50 Harving only Qualdine widower 124,400 Hender houholet if you checked any box under Standard le 216 B 72,934 9 12,200 Standard Deduction ser Instructions 9 Standard deduction or itemized deductions (from Schedule A) 10 Qualified business income deduction. Attach Form 8995 Form 8995 A Ila Add hones 9 and 10 567 10 11a 12,767 111 66, 167 Form 1040 (2019) b Taxable income. Subtract line 1ta from line. If zero or less, enter -- BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions 123-45-6785 Page 2 Form 1040 (2019) 120 8,857 x 12b 8,857 X Beth R. Jordan 12a Tak (see inst.) Check if any from Form(s): 16514 2 3 4972 30 Add schedule 2 line 3, and line 12a and enter the total 13a Child tax creditor credit for other dependents Add Schedule 3, line 7 and line 136 and enter the total 14 Subtract line 13h from line 12. fere or less entero Ja 13b 14 8,857 X 15 431 15 Other taxes, including well-employment tax, from Schedule 2. line 10 16 9,20 X 16 Add lines 14 and 15. This is your total tax 17 9,500 17 Federal income tax withheld from Forms W-2 and 1099 Other payments and refundable credits! If you have a qualifying child attach Sch. EIC If you have nontable combat pay, see instructions Earned Income credit (EIC) 18a b Additional child tax credit. Attach Schedule 8812 185 c American opportunity credit from Form 886), line 8 18c d Schedule 3. line 14 180 1,000 - Add lines 16 through 18d. These are your total other payments and refundable credits 1,000 18e 19 10,500 Add lines 17 and 16e. These are your total payments. Refund 20 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpald 21a Amount of line 20 you want refunded to you. It form 8858 is attached, check here 21a Complete Beth's Form 95. The qualified business income on line 1 must be adjusted for the so deduction of the employment to Form 8995 Qualified Business Income Deduction OMB No 1545-0123 Simplified Computation 2019 Department of the Treasury Attach to your tax return. Attachment Internal Revenue Service Go to www.is.gov/Form995 for instructions and the latest Information. Sevence No. 55 Name(s) shown on return Your taxpayer identification number Beth R. Jordan 123-45-6785 (b) Taxpayer (c) Qualified business 1 (a) Trade, business, or aggregation name identification number income or (los) Beth R. Jordan 123-45-6785 3,050 x 1 1 v 2 Total cualified business income or loss). Combine lines through 1x, column()... 2 3 3 Qualified business net (los) Carryforward from the prior year Total qualified business income. Combine lines 2 and 3 of zere or less, enter-O- 4 5 Qualified business income component. Multiply line 4 by 20% (0.20). 6 Qualified REIT dividends and publicly traded partnership (PTP) income or loss) (see instructions) 7 Qualified REIT dividends and qualified PTP (los) carryforward from the prior year 6 Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero or less, enter -0. 9 10 11 9 REIT and PTP component. Multiply line 8 by 20% (0.20) 10 Qualified business income deduction before the income limitation. Add lines 5 and 9 11 Taxable income before qualified business income deduction 12 et capital gain (see instructions) 12 13 Subtract line 12 from line 11. If zero or less, enter- 13 14 Income limitation Multiply line 13 by 20% (0.20). 15 Qualified business income deduction Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of your return. 16 Total qualified business (los) carryforward. Combine lines 2 and 3. 1f greater than zero, enter -- 17 Total qualified REIT dividends and PTP (los) carryforward. Combine Ines 6 and 7. If greater than rero, enter 0 14 15 16 17 Use the 2010 The Schedule provided. Do not use the Tex Tables Qualified Dividends and Capital Gain Tax Worksheet-Line 12a Keep for Your Records Before you begin See the earlier instructions for line 12 to see if you can use this worksheet to figure your tax. Before completing this worksheet complete Form 1040 through line 11h. If you do not have to schedule D and you received capital gain distributions, be sure you checked the box on Form 1640 or 1040-SR, line 6 1. Enter the amount from Form 1040 or 1040-SR line 11b. However, if you are filing form 2555 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet Caxable income) 60,167 2. Enter the amount from Form 1040, line 3 2. 2,200 3. Are you fing Schedule 07 Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 i blank or a loss, enter- NO Enter the amount from Form 1040 or 1040-SR, line 4. Add lines 2 and 3 2,200 S. If iting Form 4952 (used to figure investment interest expense deduction), enter any amount from line of that form. Otherwise, enter -0. 6. Subtract lines from line 4. If rere or less, enter -- 2,200 7. 57,967 7. Subtract line 6 from line 1. If zero or less, enter -o- 8. Enter: $39,375 of single or married filling separately, $78,750 of married filing jointly or qualifying widow(er), } 8. 39,375 552,750 if head of household. 9. Enter the smaller of line 1 or line 8 9. 39,375 10. 10. Enter the smaller of line 7 or line 9 39,375 11. 11. Subtract line 10 from line 9. This amount is taxed at 0% 12. 12. Enter the smaller of line 1 or line 6 2,200 13. 0 13. Enter the amount from line 11 14. 14. Subtract line 13 from line 12 2,200 15. Enter: $434,550 if single, $244,425 of married filing separately, } 15. 434,550 $488,850 if married filing jointly or qualifying widow(er), $461,700 if head of household. 16. Enter the smaller of line 1 or line 15. 16. 60,167 17. 17. Add lines 7 and 11 .. 57,967 18. 18. Subtract line 17 from line 16. If zero or less, enter-O- 2,200 19. 19. Enter the smaller of line 14 or line 18. 2,200 60,167 I. hematomum 100 100 Sb. Howevem 2655 255-nge forem enter the metrominen Creme 2. ter the amenom, 7,200 1. Ang Scher Yee hemmallerines Schule 2. otherwise te wees, enter- Enter the room 100 1040 SR, . 4. Ad 2.0 3. 42 used to investment interese dedicate any of the form Otherwinter- 2,200 7. 57.967 7. Subtract line 6 from one 1. If zero or less, entero- } . 6. Enter $39,375 single or married filing separately. 578,750 married lig jointly or qualifying widower). $52,750 head of household 9. Enter the smaller af line 1 or line 8 39,375 9. 39,375 10. 39,375 10. Enter the smaller of line 7 or line 11. 0 11. Subtract line 10 from line 9. This amount is taxed at 12. 2,200 12. Enter the smaller of line 1 or line 6 13. 13. Enter the amount from line 11 14. 2,200 14. Subtract line 13 from line 12 15. Enter $434,550 single, $244.425 if married ling separately. 15. } 434,550 $480,850 married filing jointly or qualifying widow(er), $461,700 if head of household 16. Enter the smaller of line 1 or line 15 16. 60,1677 17. 57,967 17. Add lines 7 and 11. 18. 2,200 18. Subtract line 17 from line 16. If nero or less, enter-O- 19. 2,200 19. Enter the smaller of line 14 or line 18 20. 330 20. Multiply line 19 by 15% (0.15) 21. 21. Add lines 11 and 19 2,200 22. 22. Subtract line 21 from line 12 23. Multiply line 22 by 20% (0.20) 23. 24. 8,611 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet 25. Add lines 20,23 and 24. 25. 8,941 X 26. 9,095 26. Figure the tax on the amount on line 1.1 the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 11 $100,000 or more, use the Tax Computation Worksheet. 27. Tax on all taxable income. Enter the smaller of line 25 or 26. Also indude this amount on the entry space on Form 1040 or 1040-SR, line 12a. I you are filing Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 12a. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet 27. 8,941 Beth is anticipating ignificant changes in her we in 2020, and she has asked you to estimate her taxable income and tax liability for 2020, Beth just received word that she has been qualified to adopt a 2-year-old daughter. Beth expects that the adoption will be finalized in 2020 and that she will incur approximately $2,000 of adoption expenses. In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time because of her daughter, she has decided to discontinue her two part-time jobs (e, the part-time tax practice and her software business), and she will cease making estimated income tax payments. In your computations, assume that all other 2020 income and expenses will be the same as 2019 amounts. There no personal or dependency exemptions allowed in 2020, Medical deductions are subject to a 7.5% reduction of AG in 2020. Beth's rate for the child an dependent care credit is 20% and she is entitled to the full child tax credit and adoption credit as well Click here to access the 2020 Tax Rate Schedules to use for this part of the problem. For 2020, determine the following for Beth: Filing status: Head of Household Total gross income: 73,150 X Adjusted gross income 73,406 X The greater of total itemsired deductions or standard deduction: 9,847 X Taxable income: Total tax credits: Net tax liability (after credits but before any tax withholdings or payments): $8,472 Note: This problem is for the 2019 tax year. Beth Jordan ve 2322 Skye Raad Mese, AZ 85201. She is an accountant with Mesa Manufacturing Company. 1203 Western Avenue, Mesa, AZ 85201 (emple dentification number 11-1111111). She also writes computer software programs for tax practitioners and has a part time to practice. Beth is single and has no dependents. Beth was born on July 4, 1973, and her Social Security numbers 12345-6785. She did not engage in a virtual currency transactions during the year and she wants to contribute to the Presidential Blection Campaign Fund The following information is shown on Beth's Wage and Tex Statement Commy W-2) for 2019. Line Description Amount 1 Wages, tips, other compensation $65,000.00 2 Federal income tax withheld 9,500.00 3 Secl Security wages 65,000.00 Social Security tax withheld 4,030.00 5 Medicare wages and tips 65,000.00 6 Medicare tax withheld 942.50 15 State Arizona 16 State wages, tips, etc. 65,000.00 17 State income tax withheld 1,954.00 During the year. Beth receved interest of $1,300 from Arizona Federal Savings and loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and 5650 from Orange Corporation. Each corporation reported Beth's dividend payments on a form 1099-OV. Beth received a $1,100 income tax refund from the state of Ancona on April 29, 2019. On her 2018 Federal income tax return, she used the standard deduction Fees earned from her part-time tax practice in 2019 totaled $3,000. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2019, Beth bought 500 shares of Grey Corporation common stock for $17.60 share. On September 12, 2019, Beth sold the stock for 514 share. Beth bought a used sport utility vehicle for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehicle to a friend for $6,500 On January 2, 2019, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2019, for $55 a share. Both stock transactions were reported to Beth on Form 1099-6; besis was not reported to the IRS During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business Cost of personal computer $7,000 Cost of printer 2,000 Furniture 3,000 Supplies 650 Fee paid to computer consultant 3,500 Beth elected to expense the maximum portion of the cost of the computer printer, and furniture allowed under the provisions of 5 179. These items were placed in service on January 15, 2019, and used 100% in her business, Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1.420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for doctor interest to credit card bills and hospital bills. Medical Insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated taxes of $1,000. 9,500.00 3 Social Security were 65,000.00 4 4,030.00 S Medicare wages and tipe 65,000.00 6 Medicare withheld 942.50 15 State Arizona 16 Seate wages, es 65,000.00 17 State come tax whid 1.854.00 Durma the year Beth received interest of $1,300 from Arcona Federal Savings and Loan and $400 from Arion State Bank. Each financial met reported the interest income on Form 1099-INT. She received qualified dividends of so from Blue Corporation, $750 from Green Corporation, and so from Orange Corporation. Each corporation reported e' dividend payments on a Form 1099-DIV. Beth received $1.100 income tax refund from the state of Arizona on April 20, 2019. On her 2018 Federal income tax return, she used the standard dediction Fees earned from her part-time tax practice in 2019 totaled $3.500. She pod 5600 to have the tax returns processed by a computerized TAK service. On February 8, 2019, Beth bought 500 sures of Gray Corporation common stock for $17.50 share on September 12, 2019, Beth sold the stock for $14 share Beth bought used sport Utility vehide for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehide to afnendfor $6,500 On January 2, 2019, tieth cuired 100 shares of Blue Corporation common stock for $30 a share. She wold the stock on December 19, 2019, for $55 a share. Both stock transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS During the year, Beth recorde revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business Cost of personal computer $7,000 Cost of printer 2.000 Furniture 3.000 Supplies 650 Fee paid to computer consultant 3.500 Beth elected to expense the maximum portion of the cost of the computer printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2019, and used 100% in her business Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals. During the year Beth paid $500 for prescription medicines and 52,875 for doctor interest to credit card bills and hospital bills, Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her hom mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,000 to various qualifying chanties during the year. Professional dues and subscriptions totaled $350 Beth paid estimated taxes of $1,000 Required: Compute the net tax payable or refund due for Beth R. Jordan for 2019. You will need Form 1040, (and its Schedules 1,2,3, B, C, D, and SE) and Forms 4562, 8995 and 8949 and the Qualified Dividends and Capital Gain Tax Worksheet. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "o". Enter all amounts as positive numbers, unless instructed otherwise. It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2019 Tax Rate Schedule provided. Do not use the Tax Tables. Competerem 10 for theth Jordan for 2010 2019 OM 1545-004 SRS UE O 1040 U.S. Individual Income Tax Return Filling Stage Your first name and Beth Jordan Breton spouse' me and mental Last name Apt. No Home adrese (namber and street) you have a Robow, instructions Your social security number 123-456785 Spouse's sodal security number Presidential Election campaign Check here you, or your spouse filing jointly want to te this fund. Checkog a box below will not change your or refund. olyton or post offices, and ZIP code. If you have a foreign address, a complete spaces below Me, AZ 85201 Foreign country name Foren province/statcounty Foreign postal code of more than four dependents, see Instructions and here Standard Deduction Someone can damine YON Age/Blindness Spouse Dependent (ructions) (1) (2) Social security number (a) Rohip to you (4) quotes for Cree instruction Child to che Credit for other dependente 1 65,000 te ab 3 2.200 4b 4d Wees salaries, Mech Forms) W-2 Table interest Attach sich 2a required Ordinary dividends. Antech sch 2 Quid dividende. a 2.200 required 4a TRA ne da Table amount Pengendarnutie d 40 Table amount Sa Social securny benefit Sa b Taxable amount Capital gain or Dow). Attach Schedule Drequired. If not required, check here 7. Other income free Schedule 1, line 9 Addnes 1, 2, 3, 46, 4d, 56, 6, and 7. This is your total income Adments to come from Schedule 1. line 22 Subtract line from line. This is your adjusted gross income Standard Deduction for segle Hamed separately $12,200 Married line Quering widower), Mende household $16,350 If you checked any box under samt 1,200 ody To 3,050 $94.400 7b 72,150 Ba 216 72,93 2 9 Standard Deduction, see Standard deduction or itemized deductions from Schedule A) Instruction, 12,200 10 Qualified business income decoction. Attach Form 6995 or 567 Form $995- 10 118 Addnes 9 and 10 b Taxable income. Subtract line ta from line th. If were or less, enter -- BAA For Disease Privacy Act, and Paperwork Reduction Act Notice, see separate Instructions lla 12,767 111 60,167 Form 10-40 (2019) Form 1040 (2015) 123-45-6785 Page 2 Beth R. Jordan 12a Tax (see inst.) Check it any from Form): 1 08814 2 0 4972 30 12 3.857 X 3 2.00 Standard Det for - gler Mamedling 6 1.200 Ordinary dividende Atach sch 2,200 3. Qualthed dividende Brequired 4 IRA tritone 4 Towable amount d Persons and annuities Table amount Sa Social security benefits Tawatte amount Capital gain or loss). Anach Schedule Drequired. If not required, check here Ya Other income from schedule 1. line Add Linea 1, 2, 3, 4, 4, 5, 6, and ta. This is your total income Se Adjustments to income from Schedule 1. line 22 Subtract in a frontline Th. This is your adjusted gross income 7 2,oso 73,50 Harving only Qualdine widower 124,400 Hender houholet if you checked any box under Standard le 216 B 72,934 9 12,200 Standard Deduction ser Instructions 9 Standard deduction or itemized deductions (from Schedule A) 10 Qualified business income deduction. Attach Form 8995 Form 8995 A Ila Add hones 9 and 10 567 10 11a 12,767 111 66, 167 Form 1040 (2019) b Taxable income. Subtract line 1ta from line. If zero or less, enter -- BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions 123-45-6785 Page 2 Form 1040 (2019) 120 8,857 x 12b 8,857 X Beth R. Jordan 12a Tak (see inst.) Check if any from Form(s): 16514 2 3 4972 30 Add schedule 2 line 3, and line 12a and enter the total 13a Child tax creditor credit for other dependents Add Schedule 3, line 7 and line 136 and enter the total 14 Subtract line 13h from line 12. fere or less entero Ja 13b 14 8,857 X 15 431 15 Other taxes, including well-employment tax, from Schedule 2. line 10 16 9,20 X 16 Add lines 14 and 15. This is your total tax 17 9,500 17 Federal income tax withheld from Forms W-2 and 1099 Other payments and refundable credits! If you have a qualifying child attach Sch. EIC If you have nontable combat pay, see instructions Earned Income credit (EIC) 18a b Additional child tax credit. Attach Schedule 8812 185 c American opportunity credit from Form 886), line 8 18c d Schedule 3. line 14 180 1,000 - Add lines 16 through 18d. These are your total other payments and refundable credits 1,000 18e 19 10,500 Add lines 17 and 16e. These are your total payments. Refund 20 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpald 21a Amount of line 20 you want refunded to you. It form 8858 is attached, check here 21a Complete Beth's Form 95. The qualified business income on line 1 must be adjusted for the so deduction of the employment to Form 8995 Qualified Business Income Deduction OMB No 1545-0123 Simplified Computation 2019 Department of the Treasury Attach to your tax return. Attachment Internal Revenue Service Go to www.is.gov/Form995 for instructions and the latest Information. Sevence No. 55 Name(s) shown on return Your taxpayer identification number Beth R. Jordan 123-45-6785 (b) Taxpayer (c) Qualified business 1 (a) Trade, business, or aggregation name identification number income or (los) Beth R. Jordan 123-45-6785 3,050 x 1 1 v 2 Total cualified business income or loss). Combine lines through 1x, column()... 2 3 3 Qualified business net (los) Carryforward from the prior year Total qualified business income. Combine lines 2 and 3 of zere or less, enter-O- 4 5 Qualified business income component. Multiply line 4 by 20% (0.20). 6 Qualified REIT dividends and publicly traded partnership (PTP) income or loss) (see instructions) 7 Qualified REIT dividends and qualified PTP (los) carryforward from the prior year 6 Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero or less, enter -0. 9 10 11 9 REIT and PTP component. Multiply line 8 by 20% (0.20) 10 Qualified business income deduction before the income limitation. Add lines 5 and 9 11 Taxable income before qualified business income deduction 12 et capital gain (see instructions) 12 13 Subtract line 12 from line 11. If zero or less, enter- 13 14 Income limitation Multiply line 13 by 20% (0.20). 15 Qualified business income deduction Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of your return. 16 Total qualified business (los) carryforward. Combine lines 2 and 3. 1f greater than zero, enter -- 17 Total qualified REIT dividends and PTP (los) carryforward. Combine Ines 6 and 7. If greater than rero, enter 0 14 15 16 17 Use the 2010 The Schedule provided. Do not use the Tex Tables Qualified Dividends and Capital Gain Tax Worksheet-Line 12a Keep for Your Records Before you begin See the earlier instructions for line 12 to see if you can use this worksheet to figure your tax. Before completing this worksheet complete Form 1040 through line 11h. If you do not have to schedule D and you received capital gain distributions, be sure you checked the box on Form 1640 or 1040-SR, line 6 1. Enter the amount from Form 1040 or 1040-SR line 11b. However, if you are filing form 2555 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet Caxable income) 60,167 2. Enter the amount from Form 1040, line 3 2. 2,200 3. Are you fing Schedule 07 Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 i blank or a loss, enter- NO Enter the amount from Form 1040 or 1040-SR, line 4. Add lines 2 and 3 2,200 S. If iting Form 4952 (used to figure investment interest expense deduction), enter any amount from line of that form. Otherwise, enter -0. 6. Subtract lines from line 4. If rere or less, enter -- 2,200 7. 57,967 7. Subtract line 6 from line 1. If zero or less, enter -o- 8. Enter: $39,375 of single or married filling separately, $78,750 of married filing jointly or qualifying widow(er), } 8. 39,375 552,750 if head of household. 9. Enter the smaller of line 1 or line 8 9. 39,375 10. 10. Enter the smaller of line 7 or line 9 39,375 11. 11. Subtract line 10 from line 9. This amount is taxed at 0% 12. 12. Enter the smaller of line 1 or line 6 2,200 13. 0 13. Enter the amount from line 11 14. 14. Subtract line 13 from line 12 2,200 15. Enter: $434,550 if single, $244,425 of married filing separately, } 15. 434,550 $488,850 if married filing jointly or qualifying widow(er), $461,700 if head of household. 16. Enter the smaller of line 1 or line 15. 16. 60,167 17. 17. Add lines 7 and 11 .. 57,967 18. 18. Subtract line 17 from line 16. If zero or less, enter-O- 2,200 19. 19. Enter the smaller of line 14 or line 18. 2,200 60,167 I. hematomum 100 100 Sb. Howevem 2655 255-nge forem enter the metrominen Creme 2. ter the amenom, 7,200 1. Ang Scher Yee hemmallerines Schule 2. otherwise te wees, enter- Enter the room 100 1040 SR, . 4. Ad 2.0 3. 42 used to investment interese dedicate any of the form Otherwinter- 2,200 7. 57.967 7. Subtract line 6 from one 1. If zero or less, entero- } . 6. Enter $39,375 single or married filing separately. 578,750 married lig jointly or qualifying widower). $52,750 head of household 9. Enter the smaller af line 1 or line 8 39,375 9. 39,375 10. 39,375 10. Enter the smaller of line 7 or line 11. 0 11. Subtract line 10 from line 9. This amount is taxed at 12. 2,200 12. Enter the smaller of line 1 or line 6 13. 13. Enter the amount from line 11 14. 2,200 14. Subtract line 13 from line 12 15. Enter $434,550 single, $244.425 if married ling separately. 15. } 434,550 $480,850 married filing jointly or qualifying widow(er), $461,700 if head of household 16. Enter the smaller of line 1 or line 15 16. 60,1677 17. 57,967 17. Add lines 7 and 11. 18. 2,200 18. Subtract line 17 from line 16. If nero or less, enter-O- 19. 2,200 19. Enter the smaller of line 14 or line 18 20. 330 20. Multiply line 19 by 15% (0.15) 21. 21. Add lines 11 and 19 2,200 22. 22. Subtract line 21 from line 12 23. Multiply line 22 by 20% (0.20) 23. 24. 8,611 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet 25. Add lines 20,23 and 24. 25. 8,941 X 26. 9,095 26. Figure the tax on the amount on line 1.1 the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 11 $100,000 or more, use the Tax Computation Worksheet. 27. Tax on all taxable income. Enter the smaller of line 25 or 26. Also indude this amount on the entry space on Form 1040 or 1040-SR, line 12a. I you are filing Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 12a. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet 27. 8,941 Beth is anticipating ignificant changes in her we in 2020, and she has asked you to estimate her taxable income and tax liability for 2020, Beth just received word that she has been qualified to adopt a 2-year-old daughter. Beth expects that the adoption will be finalized in 2020 and that she will incur approximately $2,000 of adoption expenses. In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time because of her daughter, she has decided to discontinue her two part-time jobs (e, the part-time tax practice and her software business), and she will cease making estimated income tax payments. In your computations, assume that all other 2020 income and expenses will be the same as 2019 amounts. There no personal or dependency exemptions allowed in 2020, Medical deductions are subject to a 7.5% reduction of AG in 2020. Beth's rate for the child an dependent care credit is 20% and she is entitled to the full child tax credit and adoption credit as well Click here to access the 2020 Tax Rate Schedules to use for this part of the problem. For 2020, determine the following for Beth: Filing status: Head of Household Total gross income: 73,150 X Adjusted gross income 73,406 X The greater of total itemsired deductions or standard deduction: 9,847 X Taxable income: Total tax credits: Net tax liability (after credits but before any tax withholdings or payments): $8,472