Note This problem is for the 2020 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, 1974, and her Social Security number is 123 45 6785 She wants to contribute $3 to the Presidential Election Campaign Fund Beth received the appropriate coronavirus recovery rebates (economic impact payments) related questions in ProConnect Tax should be ignored The following information is shown on Beth's Wage and Tax Statement (Form W2) for 2020 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 1099INT 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 1099DIV Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2020 On her 2019 Federal income tax return, she claimed the standard deduction Fees earned from her part time tax practice in 2020 totaled $3,800 She paid $600 to have the tax returns processed by a computerized tax return service On February 8, 2020, Beth bought 500 shares of Gray Corporation common stock for $17 60 a share On September 12, 2020, Beth sold the stock for $14 a share Beth bought a used sport utility vehicle for $6,000 on June 5, 2020 She purchased the vehicle from her brother in law, who was unemployed and was in need of cash On November 2, 2020, she sold the vehicle to a friend for $6,500 On January 2, 2020, Beth acquired 100 shares of Blue Corporation common stock for $30 a share She sold the stock on December 19, 2020, for $55 a share 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 179 These items were placed in service on January 15, 2020, and used 100 in her business Although her employer suggested that Beth attend an in person conference on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the meeting The $1,420 included $200 for the cost of meals During the year, Beth paid $300 for prescription medicines and $2,875 for doctor bills and hospital bills Medical insurance premiums were paid 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 credit card interest 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 Beth Jordans 2020 Federal income tax payable (or refund due), and complete her 2020 tax return using appropriate forms and schedules 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 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 2020 Tax Rate Schedule provided Do not use the Tax Tables Fill out and complete Form 1040, Schedule 1, Schedule 2, Schedule B, Schedule C, Schedule D, Form 8949, Schedule SE, Form 8995, Form 4562, Federal Statements, Qualified Dividends and Capital Gain Tax Worksheet And Answer Beth is anticipating significant changes in her life in 2021, and she has asked you to estimate her taxable income and tax liability for 2021 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 2021 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 (i 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 2021 income and expenses will be the same as 2020 amounts There no personal or dependency exemptions allowed in 2021 Medical deductions are subject to a 7 5 reduction of AGI in 2021 Beth's rate for the child an dependent care credit is 50 and she is entitled to the full child tax credit and adoption credit as well For 2021, determine the following for Beth Total gross income $ Adjusted gross income $ The greater of total itemized deductions or standard deduction $ Non itemizer charitable contribution deduction $ Taxable income $ Tax liability $ Total tax credits $ Income taxes withheld $ Refund due of the amount over $ 0 14,100 2020 Tax Rate Schedules Single Schedule X Head of household Schedule Z If taxable of the If taxable income is But not amount income is But not Over over The tax is over Over over The tax is $ 0 $ 9,875 10 $ 0 $ 0 $ 14,100 10 9,875 40,125 $ 987 50 12 9,875 14,100 53,700 $ 1,410 00 12 40,125 85,525 4,617 50 22 40,125 53,700 85,500 6,162 00 22 85,525 163,300 14,605 50 24 85,525 85,500 163,300 13,158 00 24 163,300 207,350 33,271 50 32 163,300 163,300 207,350 31,830 00 32 207,350 518,400 47,367 50 35 207,350 207,350 518,400 45,926 00 35 518,400 156,235 00 37 518,400 518,400 154,793 50 37 Married filing jointly or Qualifying widow(er) Married filing separatelySchedule Y 2 Schedule Y 1 If taxable of the If taxable income is But not amount income is But not Over over The tax is over Over over The tax is $ 0 $ 19,750 10 $ 0 $ 0 $ 9,875 10 19,750 80,250 $ 1,975 00 12 19,750 9,875 40,125 $ 987 50 12 80,250 171,050 9,235 00 22 80,250 40,125 85,525 4,617 50 22 171,050 326,600 29,211 00 24 171,050 85,525 163,300 14,605 50 24 326,600 414,700 66,543 00 32 326,600 163,300 207,350 33,271 50 32 414,700 622,050 94,735 00 35 414,700 207,350 311,025 47,367 50 35 622,050 167,307 50 37 622,050 311,025 83,653 75 37 53,700 85,500 163,300 207,350 518,400 of the amount over $ 0 9,875 40,125 85,525 163,300 207,350 311,025 of the amount over $ 0 14,100 2020 Tax Rate Schedules Single Schedule X Head of household Schedule Z If taxable of the If taxable income is But not amount income is But not Over over The tax is over Over over The tax is $ 0 $ 9,875 10 $ 0 $ 0 $ 14,100 10 9,875 40,125 $ 987 50 12 9,875 14,100 53,700 $ 1,410 00 12 40,125 85,525 4,617 50 22 40,125 53,700 85,500 6,162 00 22 85,525 163,300 14,605 50 24 85,525 85,500 163,300 13,158 00 24 163,300 207,350 33,271 50 32 163,300 163,300 207,350 31,830 00 32 207,350 518,400 47,367 50 35 207,350 207,350 518,400 45,926 00 35 518,400 156,235 00 37 518,400 518,400 154,793 50 37 Married filing jointly or Qualifying widow(er) Married filing separatelySchedule Y 2 Schedule Y 1 If taxable of the If taxable income is But not amount income is But not Over over The tax is over Over over The tax is $ 0 $ 19,750 10 $ 0 $ 0 $ 9,875 10 19,750 80,250 $ 1,975 00 12 19,750 9,875 40,125 $ 987 50 12 80,250 171,050 9,235 00 22 80,250 40,125 85,525 4,617 50 22 171,050 326,600 29,211 00 24 171,050 85,525 163,300 14,605 50 24 326,600 414,700 66,543 00 32 326,600 163,300 207,350 33,271 50 32 414,700 622,050 94,735 00 35 414,700 207,350 311,025 47,367 50 35 622,050 167,307 50 37 622,050 311,025 83,653 75 37 53,700 85,500 163,300 207,350 518,400 of the amount over $ 0 9,875 40,125 85,525 163,300 207,350 311,025

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Note: This problem is for the 2020 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant

Note: This problem is for the 2020 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, 1974, and her Social Security number is 123-45-6785. She wants to contribute $3 to the Presidential Election Campaign Fund. Beth received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored.

The following information is shown on Beth's Wage and Tax Statement (Form W2) for 2020.

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 1099INT. 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 1099DIV.

Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2020. On her 2019 Federal income tax return, she claimed the standard deduction.

Fees earned from her part-time tax practice in 2020 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service.

On February 8, 2020, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2020, Beth sold the stock for $14 a share.

Beth bought a used sport utility vehicle for $6,000 on June 5, 2020. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2020, she sold the vehicle to a friend for $6,500.

On January 2, 2020, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2020, for $55 a share.

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 179. These items were placed in service on January 15, 2020, and used 100% in her business.

Although her employer suggested that Beth attend an in-person conference on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the meeting. The $1,420 included $200 for the cost of meals.

During the year, Beth paid $300 for prescription medicines and $2,875 for doctor bills and hospital bills. Medical insurance premiums were paid 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 credit card interest 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 Beth Jordans 2020 Federal income tax payable (or refund due), and complete her 2020 tax return using appropriate forms and schedules 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 "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 2020 Tax Rate Schedule provided. Do not use the Tax Tables.
Fill out and complete: Form 1040, Schedule 1, Schedule 2, Schedule B, Schedule C, Schedule D, Form 8949, Schedule SE, Form 8995, Form 4562, Federal Statements, Qualified Dividends and Capital Gain Tax Worksheet
And Answer:

Beth is anticipating significant changes in her life in 2021, and she has asked you to estimate her taxable income and tax liability for 2021. 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 2021 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 (i.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 2021 income and expenses will be the same as 2020 amounts. There no personal or dependency exemptions allowed in 2021. Medical deductions are subject to a 7.5% reduction of AGI in 2021. Beth's rate for the child an dependent care credit is 50% and she is entitled to the full child tax credit and adoption credit as well.

For 2021, determine the following for Beth: Total gross income: $ Adjusted gross income: $ The greater of total itemized deductions or standard deduction: $ Non-itemizer charitable contribution deduction: $ Taxable income: $ Tax liability: $ Total tax credits: $ Income taxes withheld: $ Refund due:

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of the amount over- $ 0 14,100 2020 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable of the If taxable income is: But not amount income is: But not Over- over- The tax is: over- Over- over The tax is: $ 0 $ 9,875 ......... 10% $ 0 $ 0 $ 14,100 ......... 10% 9,875 40,125 $ 987.50 + 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 + 22% 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 +24% 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 + 37% Married filing jointly or Qualifying widow(er) - Married filing separatelySchedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But not Over- over The tax is: over- Over over- The tax is: $ 0 $ 19,750 .........10% $ 0 $ 0 $ 9,875 ......... 10% 19,750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 $ 987.50 +12% 80,250 171,050 9,235.00+ 22% 80,250 40,125 85,525 4,617.50 + 22% 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 + 24% 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 + 37% 53,700 85,500 163,300 207,350 518,400 of the amount over $ 0 9,875 40,125 85,525 163,300 207,350 311,025 of the amount over- $ 0 14,100 2020 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable of the If taxable income is: But not amount income is: But not Over- over- The tax is: over- Over- over The tax is: $ 0 $ 9,875 ......... 10% $ 0 $ 0 $ 14,100 ......... 10% 9,875 40,125 $ 987.50 + 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 + 22% 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 +24% 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 + 37% Married filing jointly or Qualifying widow(er) - Married filing separatelySchedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But not Over- over The tax is: over- Over over- The tax is: $ 0 $ 19,750 .........10% $ 0 $ 0 $ 9,875 ......... 10% 19,750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 $ 987.50 +12% 80,250 171,050 9,235.00+ 22% 80,250 40,125 85,525 4,617.50 + 22% 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 + 24% 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 + 37% 53,700 85,500 163,300 207,350 518,400 of the amount over $ 0 9,875 40,125 85,525 163,300 207,350 311,025