Note: This problem is for the 2019 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth was born on July 4, 1973, and her Social Security number is 123-45-6785. She did not engage in any virtual currency transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2019. Line Description Amount 1 Wages, tips, other compensation $65,000.00 2 Federal income tax withheld 9,500.00 3 Social Security wages 65,000.00 4 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 received 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 $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. Beth received a $1,100 income tax refund from the state of Arizona 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 $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2019, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2019, Beth sold the stock for $14 a 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-B; basis 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 Cost of printer Furniture Supplies Fee paid to computer consultant $7,000 2,000 3,000 650 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 $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. 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 equire an entry or the ans ver is zero, enter "0". 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. Qualified Dividends and Capital Gain Tax Worksheet-Line 12a Keep for Your Records Before you begin: See the earlier instructions for line 12a to see if you can use this worksheet to figure your tax Before completing this worksheet, complete Form 1040 through line 11b. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 6. 1. Enter the amount from Form 1040 or 1040-SR, line 11b. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet ... (Taxable income). ----- 2. Enter the amount from Form 1040, line 3a* 2. 2,200 1. 60,1677 3. Are you filing Schedule D? Yes Enter the smaller of line 15 or 16 of Schedule D. IT either line 15 or line 16 is blank or a loss, enter-O- No Enter the amount from Form 1040 or 1040-SR, line 6. 3. 4. Add lines 2 and 3. 2,200 5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter-O- .............................. 6. Subtract line 5 from line 4. If zero or less, enter-O- 5. 6. 2,200 7. Subtract line 6 from line 1. If zero or less, enter -- 7. 57,967 8. Enter: $39,375 if single or married filing separately, , $78,750 il married filing jointly or qualifying widow(er), 39,375 $52,750 if head of household. 9. Enter the smaller of line 1 or line 8 9. 39,375 10. Enter the smaller of line 7 or line 9 10. 39,375 11. Subtract line 10 from line 9. This amount is taxed at 0% 11. . 0 ol 12. Enter the smaller of line 1 or line 6... 12. . 2,200 13. Enter the amount from line 11 13 0 14. Subtract line 13 from line 12 14. 2,200 15. Enter: $434,550 if single, $244,425 if 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. Add lines 7 and 11 ..... 17. 57,967 18. Subtract line 17 from line 16. If zero or less, enter -O- 18. 2,200 19. Enter the smaller of line 14 or line 18 19. 2,2007 20. Multiply line 19 by 15% (0.15) - 20. 330 21. Add lines 11 and 19.. 21. 2,200 22. Subtract line 21 from line 12 22 o 23. Multiply line 22 by 20% (0.20). 23. 0 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..... 24. 8,612 X 25. 8,915 X 9,095 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet... 26. 27. Tax on all taxable income. Enter the smaller of line 25 or 26. Also include this amount on the entry space on Form 1040 or 1040-SR, line 12a. If 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 Eamed Income Tax Worksheet........... .................... 27. * If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. 8,915 X Note: This problem is for the 2019 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth was born on July 4, 1973, and her Social Security number is 123-45-6785. She did not engage in any virtual currency transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2019. Line Description Amount 1 Wages, tips, other compensation $65,000.00 2 Federal income tax withheld 9,500.00 3 Social Security wages 65,000.00 4 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 received 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 $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. Beth received a $1,100 income tax refund from the state of Arizona 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 $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2019, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2019, Beth sold the stock for $14 a 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-B; basis 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 Cost of printer Furniture Supplies Fee paid to computer consultant $7,000 2,000 3,000 650 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 $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. 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 equire an entry or the ans ver is zero, enter "0". 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. Qualified Dividends and Capital Gain Tax Worksheet-Line 12a Keep for Your Records Before you begin: See the earlier instructions for line 12a to see if you can use this worksheet to figure your tax Before completing this worksheet, complete Form 1040 through line 11b. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 6. 1. Enter the amount from Form 1040 or 1040-SR, line 11b. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet ... (Taxable income). ----- 2. Enter the amount from Form 1040, line 3a* 2. 2,200 1. 60,1677 3. Are you filing Schedule D? Yes Enter the smaller of line 15 or 16 of Schedule D. IT either line 15 or line 16 is blank or a loss, enter-O- No Enter the amount from Form 1040 or 1040-SR, line 6. 3. 4. Add lines 2 and 3. 2,200 5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter-O- .............................. 6. Subtract line 5 from line 4. If zero or less, enter-O- 5. 6. 2,200 7. Subtract line 6 from line 1. If zero or less, enter -- 7. 57,967 8. Enter: $39,375 if single or married filing separately, , $78,750 il married filing jointly or qualifying widow(er), 39,375 $52,750 if head of household. 9. Enter the smaller of line 1 or line 8 9. 39,375 10. Enter the smaller of line 7 or line 9 10. 39,375 11. Subtract line 10 from line 9. This amount is taxed at 0% 11. . 0 ol 12. Enter the smaller of line 1 or line 6... 12. . 2,200 13. Enter the amount from line 11 13 0 14. Subtract line 13 from line 12 14. 2,200 15. Enter: $434,550 if single, $244,425 if 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. Add lines 7 and 11 ..... 17. 57,967 18. Subtract line 17 from line 16. If zero or less, enter -O- 18. 2,200 19. Enter the smaller of line 14 or line 18 19. 2,2007 20. Multiply line 19 by 15% (0.15) - 20. 330 21. Add lines 11 and 19.. 21. 2,200 22. Subtract line 21 from line 12 22 o 23. Multiply line 22 by 20% (0.20). 23. 0 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..... 24. 8,612 X 25. 8,915 X 9,095 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet... 26. 27. Tax on all taxable income. Enter the smaller of line 25 or 26. Also include this amount on the entry space on Form 1040 or 1040-SR, line 12a. If 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 Eamed Income Tax Worksheet........... .................... 27. * If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. 8,915 X