Note This problem is for the 2020 tax year Alfred E Old and Beulah A Crane, each age 42, married on September 7, 2018 Alfred and Beulah will file a joint return for 2020 Alfred's Social Security number is 111 11 1109 Beulah's Social Security number is 123 45 6780, and she has chosen to use Old as her married name They live at 211 Brickstone Drive, Atlanta, GA 30304 Alfred was divorced from Sarah Old in March 2017 Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first Alfred paid Sarah $15,000 in 2020 In addition, in January 2020, Alfred paid Sarah $50,000, which is designated as being for her share of the marital property Also, Alfred is responsible for all prior years' income taxes Sarah's Social Security number is 123 45 6788 Alfred's salary for 2020 is $150,000 He is an executive working for Cherry, Inc (Federal I D No 98 7654321) As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes The proper amounts were withheld for FICA taxes Beulah recently graduated from law school and is employed by Legal Aid Society, Inc (Federal I D No 11 1111111), as a public defender She received a salary of $42,000 in 2020 Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes The proper amounts were withheld for FICA taxes Alfred and Beulah received taxable interest income of $500 Alfred and Beulah received a $1,900 refund on their 2019 state income taxes they claimed the standard deduction on their 2019 Federal income tax return Alfred and Beulah paid $4,500 interest and $1,450 property taxes on their personal residence in 2020 They paid sales taxes of $1,400, for which they maintain the receipts Alfred and Beulah have never owned or used any virtual currency, and they do not want to contribute to the Presidential Election Campaign Alfred and Beulah received the appropriate coronavirus recovery rebates (economic impact payments) related questions in ProConnect Tax should be ignored Required Compute the Olds' net tax payable (or refund due) for 2020 Use Form 1040 and Schedule 1 to complete this tax return It may be necessary to complete the tax schedule and worksheet before completing Form 1040 Enter all amounts as positive numbers If an amount box does not require an entry or the answer is zero, enter 0 Make realistic assumptions about any missing data When computing the tax liability, do not round your immediate calculations If required round your final answers to the nearest dollar Use the 2020 Tax Rate Schedule provided Do not use the Tax Tables EXHIBIT 5 1 Uniform Premiums for $1,000 of Group Term Life Insurance Protection Attained Age on Last Day of Employee's Tax Year Under 25 25 29 30 34 35 39 40 44 45 49 50 54 55 59 60 64 65 69 70 and above Reg $ 1 79 3, effective for coverage after June 30, 1999 Cost per $1,000 of Protection for One Month Period $0 05 0 06 0 08 0 09 0 10 0 15 0 23 0 43 0 66 1 27 2 06 Single Schedule X Head of household Schedule Z If taxable of the If taxable of the But not amount income is But not amount income is Over over The tax is over Over over The tax is over $ 0 $ 9,875 10 $ 0 $ 0 $ 14,100 10 $ 0 9,875 40,125 $ 987 50 12 9,875 14,100 53,700 $ 1,410 00 12 14,100 40,125 85,525 4,617 50 22 40,125 53,700 85,500 6,162 00 22 53,700 85,525 163,300 14,605 50 24 85,525 85,525 163,300 13,158 00 24 85,500 163,300 207,350 33,271 50 32 163,300 163,300 207,350 31,830 00 32 163,300 207,350 518,400 47,367 50 35 207,350 207,350 518,400 45,926 00 35 207,350 518,400 156,235 00 37 518,400 518,400 154,793 50 37 518,400 Married filing jointly or Qualifying widow(er) Schedule Y 1 Married filing separatelySchedule Y 2 If taxable of the If taxable of the income is But not amount income is But not amount Over over The tax is over Over over The tax is over $ 0 $ 19,750 10 $ 0 $ 0 $ 9,875 10 $ 0 19,750 80,250 $ 1,975 00 12 19,750 9,875 40,125 $ 987 50 12 9,875 80,250 171,050 9,235 00 22 80,250 40,125 85,525 4,617 50 22 40,125 171,050 326,600 29,211 00 24 171,050 85,525 163,300 14,605 50 24 85,525

Question

Note  This problem is for the 2020 tax year  Alfred E  Old and Beulah A  Crane, each age 42, married on September 7, 2018  Alfred and Beulah will file a joint return for 2020  Alfred's Social Security number is 111 11 1109  Beulah's Social Security number is 123 45 6780, and she has chosen to use  Old  as her married name  They live at 211 Brickstone Drive, Atlanta, GA 30304  Alfred was divorced from Sarah Old in March 2017  Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first  Alfred paid Sarah $15,000 in 2020  In addition, in January 2020, Alfred paid Sarah $50,000, which is designated as being for her share of the marital property  Also, Alfred is responsible for all prior years' income taxes  Sarah's Social Security number is 123 45 6788  Alfred's salary for 2020 is $150,000  He is an executive working for Cherry, Inc  (Federal I D  No  98 7654321)  As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary  His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes  The proper amounts were withheld for FICA taxes  Beulah recently graduated from law school and is employed by Legal Aid Society, Inc  (Federal I D  No  11 1111111), as a public defender  She received a salary of $42,000 in 2020  Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes  The proper amounts were withheld for FICA taxes  Alfred and Beulah received taxable interest income of $500  Alfred and Beulah received a $1,900 refund on their 2019 state income taxes  they claimed the standard deduction on their 2019 Federal income tax return  Alfred and Beulah paid $4,500 interest and $1,450 property taxes on their personal residence in 2020  They paid sales taxes of $1,400, for which they maintain the receipts  Alfred and Beulah have never owned or used any virtual currency, and they do not want to contribute to the Presidential Election Campaign  Alfred and Beulah received the appropriate coronavirus recovery rebates (economic impact payments)  related questions in ProConnect Tax should be ignored  Required  Compute the Olds' net tax payable (or refund due) for 2020  Use Form 1040 and Schedule 1 to complete this tax return  It may be necessary to complete the tax schedule and worksheet before completing Form 1040  Enter all amounts as positive numbers  If an amount box does not require an entry or the answer is zero, enter  0   Make realistic assumptions about any missing data  When computing the tax liability, do not round your immediate calculations  If required round your final answers to the nearest dollar  Use the 2020 Tax Rate Schedule provided  Do not use the Tax Tables    EXHIBIT 5 1 Uniform Premiums for $1,000 of Group Term Life Insurance Protection Attained Age on Last Day of Employee's Tax Year Under 25 25 29 30 34 35 39 40 44 45 49 50 54 55 59 60 64 65 69 70 and above  Reg  $ 1 79 3, effective for coverage after June 30, 1999  Cost per $1,000 of Protection for One Month Period  $0 05 0 06 0 08 0 09 0 10 0 15 0 23 0 43 0 66 1 27 2 06 Single Schedule X Head of household Schedule Z If taxable of the If taxable of the But not amount income is  But not amount income is  Over  over  The tax is  over  Over  over  The tax is  over  $ 0 $ 9,875        10  $ 0 $ 0 $ 14,100        10  $ 0 9,875 40,125 $ 987 50   12  9,875 14,100 53,700 $ 1,410 00   12  14,100 40,125 85,525 4,617 50   22  40,125 53,700 85,500 6,162 00   22  53,700 85,525 163,300 14,605 50   24  85,525 85,525 163,300 13,158 00   24  85,500 163,300 207,350 33,271 50   32  163,300 163,300 207,350 31,830 00   32  163,300 207,350 518,400 47,367 50   35  207,350 207,350 518,400 45,926 00   35  207,350 518,400 156,235 00   37  518,400 518,400 154,793 50   37  518,400 Married filing jointly or Qualifying widow(er) Schedule Y 1 Married filing separatelySchedule Y 2 If taxable of the If taxable of the income is  But not amount income is  But not amount Over  over  The tax is  over  Over  over  The tax is  over  $ 0 $ 19,750 10  $ 0 $ 0 $ 9,875 10  $ 0 19,750 80,250 $ 1,975 00   12  19,750 9,875 40,125 $ 987 50   12  9,875 80,250 171,050 9,235 00   22  80,250 40,125 85,525 4,617 50   22  40,125 171,050 326,600 29,211 00   24  171,050 85,525 163,300 14,605 50   24  85,525

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Note: This problem is for the 2020 tax year. Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2018. Alfred

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