Note: This problem is for the 2019 tax year. Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta has never owned or used any virtual currency. She does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta, an advertising executive, earned a salary from ABC Advertising of $80,000 in 2019. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax. Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jason's support during 2019. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2019, she has decided not to do so. Roberta provides all of June's support. Roberta's mother died on January 7, 2019. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother's life insurance policy, Roberta received insurance proceeds of $300,000. Her mother's cost basis for the life insurance policy was $120,000. Roberta's favorite aunt gave her $13,000 for her birthday in October. On November 8, 2019, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2013. Walt's cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2015. On December 1, 2019, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2015, for $8,000. . An examination of Roberta's records reveals that she received the following: Interest income of $2,500 from First Savings Bank. Groceries valued at $750 from Kroger Groceries for being the 100,000th customer. Qualified dividend income of $1,800 from Amber. Interest income of $3,750 on City of Springfield school bonds. Alimony of $16,000 from Wayne; divorce finalized in May 2015. Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W-2 wage limitation does not. . . From her checkbook records, she determines that she made the following payments during 2019: Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained). Paid $5,000 to ECM Hospital for the medical expenses of a friend from work. Mortgage interest on her residence of $7,800 to Peoples Bank. Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence. Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000. Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses. She had full-year health care coverage. A $1,000 ticket for parking in a handicapped space. Attorney's fees of $500 associated with unsuccessfully contesting the parking ticket. Contribution of $250 to the campaign of a candidate for governor. . . Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994. Required: Calculate Roberta's net tax payable or refund due for 2019. . Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount box does not require an entry or the answer is zero, enter "0". Make realistic assumptions about any missing data. 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 Tax Rate Schedule provided. Do not use the Tax Tables. Form Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only Filing Status Single Your first name and middle initial Last name Your social security number 123-45-6780 Roberta Santos If joint return, spouse's first name and middle initial Last name Spouse's social security number Apt. no. Presidential Election Home address (number and street). If you have a P.O. box, see instructions. 120 Sanborne Avenue City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Springfield, IL 60781 Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. None Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here 0 Standard Someone can claim: None Deduction You: None Age/Blindness Spouse: None Spouse: Dependents (see instructions): (2) Social security number (3) Relationship to you (4) V if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents Jason Santos 111-11-1112 Child No No June Santos 123-45-6788 Child No No 1 Wages, salaries, tips, etc. Attach Form(s) W-2. 1 80,000 b 2a Tax-exempt interest .. 2a Taxable interest. Attach Sch. B if required 2b 2,500 Standard b 3a Qualified dividends . 3a Ordinary dividends. Attach Sch. B if required 3b 1,800 . 4a IRA distributions 4a b Taxable amount . 4b Pensions and annuities 4c d Taxable amount. 4d 5a Social security benefits 5a b Taxable amount . 5b . 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here . 6 5,500 Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 If you checked any box under 7a Other income from Schedule 1, line 9. 7a b Add lines 1, 2b, 36, 46, 40, 5b, 6, and 7a. This is your total income 7b 8a Adjustments to income from Schedule 1, line 22 . 8a b Subtract line 8a from line 7b. This is your adjusted gross income. 8b D 9 Standard Deduction, see instructions. Standard deduction or itemized deductions (from Schedule A). 9 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A. 10 11a Add lines 9 and 10 11a b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -o-, 11b BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2019) Form 1040 (2019) Roberta Santos 123-45-6780 Page 2 12a Tax (see inst.) Check if any from Form(s): 1 08814 2 0 4972 3 O 12a b Add Schedule 2, line 3, and line 12a and enter the total 12b 13a Child tax credit or credit for other dependents. 13a b Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter -0-. 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax . 16 17 Federal income tax withheld from Forms W-2 and 1099 17 18 Other payments and refundable credits: a Earned income credit (EIC). 18a If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see instructions. b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 8 180 d Schedule 3, line 14 18d e Add lines 18a through 18d. These are your total other payments and refundable credits 18e 19 Add lines 17 and 18e. These are your total payments 19 20 Refund If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid .. 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 0 21a Direct deposit? b Routing number c Type: Checking o Savings See instructions. d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax. 22 23 Amount Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 23 You Owe 24 Estimated tax penalty (see instructions) 24 Third Party Yes. Complete below. Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. > No Designee Designee Designee's Phone Personal identification (Other than paid preparer) name no. number (PIN) Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Joint return? See (see inst.) Advertising Execut. instructions. Keep a copy for your records. Spouse's occupation Spouse's signature. If a joint Date return, both must sign. If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Phone no. Email address Preparer's name Date PTIN Check if: Paid Preparer's signature Self-Prepared 3rd Party Designee Firm's name Phone no. Preparer Use Only Self-employed Firm's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019) Note: This problem is for the 2019 tax year. Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta has never owned or used any virtual currency. She does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta, an advertising executive, earned a salary from ABC Advertising of $80,000 in 2019. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax. Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jason's support during 2019. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2019, she has decided not to do so. Roberta provides all of June's support. Roberta's mother died on January 7, 2019. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother's life insurance policy, Roberta received insurance proceeds of $300,000. Her mother's cost basis for the life insurance policy was $120,000. Roberta's favorite aunt gave her $13,000 for her birthday in October. On November 8, 2019, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2013. Walt's cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2015. On December 1, 2019, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2015, for $8,000. . An examination of Roberta's records reveals that she received the following: Interest income of $2,500 from First Savings Bank. Groceries valued at $750 from Kroger Groceries for being the 100,000th customer. Qualified dividend income of $1,800 from Amber. Interest income of $3,750 on City of Springfield school bonds. Alimony of $16,000 from Wayne; divorce finalized in May 2015. Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W-2 wage limitation does not. . . From her checkbook records, she determines that she made the following payments during 2019: Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained). Paid $5,000 to ECM Hospital for the medical expenses of a friend from work. Mortgage interest on her residence of $7,800 to Peoples Bank. Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence. Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000. Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses. She had full-year health care coverage. A $1,000 ticket for parking in a handicapped space. Attorney's fees of $500 associated with unsuccessfully contesting the parking ticket. Contribution of $250 to the campaign of a candidate for governor. . . Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994. Required: Calculate Roberta's net tax payable or refund due for 2019. . Enter all amounts as positive numbers. However, use the minus sign to indicate a loss. If an amount box does not require an entry or the answer is zero, enter "0". Make realistic assumptions about any missing data. 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 Tax Rate Schedule provided. Do not use the Tax Tables. Form Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only Filing Status Single Your first name and middle initial Last name Your social security number 123-45-6780 Roberta Santos If joint return, spouse's first name and middle initial Last name Spouse's social security number Apt. no. Presidential Election Home address (number and street). If you have a P.O. box, see instructions. 120 Sanborne Avenue City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Springfield, IL 60781 Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. None Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here 0 Standard Someone can claim: None Deduction You: None Age/Blindness Spouse: None Spouse: Dependents (see instructions): (2) Social security number (3) Relationship to you (4) V if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents Jason Santos 111-11-1112 Child No No June Santos 123-45-6788 Child No No 1 Wages, salaries, tips, etc. Attach Form(s) W-2. 1 80,000 b 2a Tax-exempt interest .. 2a Taxable interest. Attach Sch. B if required 2b 2,500 Standard b 3a Qualified dividends . 3a Ordinary dividends. Attach Sch. B if required 3b 1,800 . 4a IRA distributions 4a b Taxable amount . 4b Pensions and annuities 4c d Taxable amount. 4d 5a Social security benefits 5a b Taxable amount . 5b . 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here . 6 5,500 Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 If you checked any box under 7a Other income from Schedule 1, line 9. 7a b Add lines 1, 2b, 36, 46, 40, 5b, 6, and 7a. This is your total income 7b 8a Adjustments to income from Schedule 1, line 22 . 8a b Subtract line 8a from line 7b. This is your adjusted gross income. 8b D 9 Standard Deduction, see instructions. Standard deduction or itemized deductions (from Schedule A). 9 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A. 10 11a Add lines 9 and 10 11a b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -o-, 11b BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2019) Form 1040 (2019) Roberta Santos 123-45-6780 Page 2 12a Tax (see inst.) Check if any from Form(s): 1 08814 2 0 4972 3 O 12a b Add Schedule 2, line 3, and line 12a and enter the total 12b 13a Child tax credit or credit for other dependents. 13a b Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter -0-. 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax . 16 17 Federal income tax withheld from Forms W-2 and 1099 17 18 Other payments and refundable credits: a Earned income credit (EIC). 18a If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see instructions. b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 8 180 d Schedule 3, line 14 18d e Add lines 18a through 18d. These are your total other payments and refundable credits 18e 19 Add lines 17 and 18e. These are your total payments 19 20 Refund If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid .. 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 0 21a Direct deposit? b Routing number c Type: Checking o Savings See instructions. d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax. 22 23 Amount Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 23 You Owe 24 Estimated tax penalty (see instructions) 24 Third Party Yes. Complete below. Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. > No Designee Designee Designee's Phone Personal identification (Other than paid preparer) name no. number (PIN) Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Joint return? See (see inst.) Advertising Execut. instructions. Keep a copy for your records. Spouse's occupation Spouse's signature. If a joint Date return, both must sign. If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Phone no. Email address Preparer's name Date PTIN Check if: Paid Preparer's signature Self-Prepared 3rd Party Designee Firm's name Phone no. Preparer Use Only Self-employed Firm's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019)