Pleas help me solve for the correct answers
Note: This problem is for the 2019 tax year.
Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive, Boca Raton, FL 33434. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, FL 33431. Jane's Social Security number is 123-45-6781. Jane indicates that she wants to designate $3 to the Presidential Election Campaign Fund. Jane has never owned or used any virtual currency. During 2019, Jane had the following income and expense items:
| a. | | $100,000 salary from Legal Services, Inc. |
| b. | | $20,000 gross receipts from her typing services business. |
| c. | | $700 interest income from Third National Bank. |
| d. | | $1,000 Christmas bonus from Legal Services, Inc. |
| e. | | $60,000 life insurance proceeds on the death of her sister. |
| f. | | $5,000 check given to her by her wealthy aunt. |
| g. | | $100 won in a bingo game. |
| h. | | Expenses connected with the typing service: |
| | | | Office rent | $7,000 | | Supplies | 4,400 | | Utilities and telephone | 4,680 | | Wages to part-time typists | 5,000 | | Payroll taxes | 500 | | Equipment rentals | 3,000 | |
| i. | | $9,500 interest expense on a home mortgage (paid to San Jose Savings and Loan). |
| j. | | $15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2019. Jane had paid $14,000 for the silverware on July 1, 2009. She was reimbursed $10,000 by her insurance company. |
| k. | | Jane had loaned $2,100 to a friend, Joan Jensen, on June 3, 2015. Joan declared bankruptcy on August 14, 2019, and was unable to repay the loan. Assume that the loan is a bona fide debt. |
| l. | | Legal Services, Inc., withheld Federal income tax of $15,000 and the appropriate amount of FICA tax from her wages. |
| m. | | Alimony of $10,000 received from her former husband, Ted Smith; divorce was finalized on December 2, 2013, and no changes have been made to the divorce decree since that time. |
| n. | | Interest income of $800 on City of Boca Raton bonds. |
| o. | | Jane made estimated Federal tax payments of $2,000. |
| p. | | Sales taxes from the sales tax table of $953. |
| q. | | Property taxes on her residence of $3,200. |
| r. | | Charitable contribution of $2,500 to her alma mater, Citrus State College. |
| s. | | On November 1, 2019, Jane was involved in an automobile accident. At the time of the accident, Jane's automobile had an FMV of $45,000. After the accident, the automobile's FMV was $38,000. Jane acquired the car at a cost of $52,000. Jane's car was covered by insurance, but because the policy had a $5,000 deduction clause, Jane decided not to file a claim for the damage. |
Required:
Compute Jane Smith's 2019 Federal income tax payable (or refund due). Use Form 1040, Schedule 1, Schedule 5, Schedule A, Schedule C, Schedule D and Form 8949.
- 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. However, unless instructed otherwise, use the minus sign to indicate a loss.
- It may be necessary to complete the tax schedules before completing Form 1040.
- Use the tax rate schedules provided (do not use the tax tables). When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.
Standard Deduction Someone can claim: None You: None Age/Blindness Spouse: None Dependents (see instructions): |(2) Social security number (3) Relationship to you (4) Vif qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents O O O Wages, salaries, tips, etc. Attach Form(s) W-2. 1 1 101,000 2a Tax-exempt interest .. 2a 800 2b 700 b Taxable interest. Attach Sch. Bir required b Ordinary dividends. Attach Sch. Bif required Taxable amount .... b 3a Qualified dividends.. Standard 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 Standard Deduction, see instructions. 3b 4a IRA distributions 4a 4b Taxable amount c Pensions and annuities 4c d 4d b 5b Taxable amount. 5a Social security benefits 5a Capital gain or loss). Attach Schedule D if required. If not required, check here.. 6 -2,100 Other income from Schedule 1, line 9 7a 7a 700 Add lines 1, 2b, 3b, 46, 4d, 5b, 6, and 7a. This is your total income 7b 105,120 Adjustments to income from Schedule 1, line 22 8a 8 Subtract line 8a from line 76. This is your adjusted gross income 8b | 105,120 9 Standard deduction or itemized deductions (from Schedule A) 975 9 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A. 10 11a Add lines 9 and 10 11a 0 b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -0- 11b 80,236 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2019) x 12a 975 12b 0 13a Form 1040 (2019) Jane Smith 123-45-6781 Page 2 12a Tax (see inst.) Check if any from Form(s): 108814 20 4972 30 b Add Schedule 2, line 3, and line 12a and enter the total. 13a Child tax credit or credit for other dependents .. b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 12b. If zero or less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2, line 10. Add lines 14 and 15. This is your total tax A 13b 14 - XI 0 15 16 16 80,386 17 17-17,000 If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see instructions. Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC). 18a b Additional child tax credit. Attach Schedule 8812. 18b c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14 .. e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 18d 0 18e 975 19 17,000 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 20 21a OXI 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here Direct deposit? Routing number c Type: Checking Savings See instructions. d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax. 22 23 below. Amount 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions You Owe 24 Estimated tax penalty (see instructions).. 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return Yes. Complete with the IRS? See instructions. Designee No (Other than Designee's Phone Personal identification paid preparer) 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 Hara name no. renarer other than taynaver is based on all information of which prenarer has any knowledne Additional Income and Adjustments to OMB No 1545- SCHEDULE 1 0074 (Form 1040 or 1040-SR) Income 2019 Department of the Treasury Internal Attach to Form 1040 or 1040-SR. Attachment Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest Sequence No. information. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Jane Smith 123-45-6781 At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes. 2a Alimony received .. 10,000 b Date of original divorce or separation agreement (see instructions) 12/2013 X 3 Business income or loss). Attach Schedule C.. 6,680 4 Other gains or losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 6 Farm income or loss). Attach Schedule F. 7 Unemployment compensation .... 8 Other income. List type and amount Gambling winnings 1 2a 3 4 5 6 7 00 100 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 Part II Adjustments to Income 10 Educator expenses.... 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 10 11 12 13 14 15 16 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans 16 Self-employed health insurance deduction ... 17 Penalty on early withdrawal of savings. 18a Alimony paid b Recipient's SSN. c Date of original divorce or separation agreement (see instructions) ps://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 17 18a 4/15 Schedule 3 Complete Jane Smith's Schedule 3. 03 OMB No. 1545 SCHEDULE 3 Additional Credits and Payments 0074 (Form 1040 or 1040-SR) 2019 Attachment Department of the Treasury Internal Revenue Attach to Form 1040 or 1040-SR. Service Go to www.irs.gov/Form1040 for instructions and the latest Sequence No. information. Name(s) shown on Form 1040 or 1040-SR Your social security number Jane Smith 123-45-6781 Part I Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required. 2 Credit for child and dependent care expenses. Attach Form 2441 3 Education credits from Form 8863, line 19.......... 4 Retirement savings contributions credit. Attach Form 8880 5 Residential energy credit. Attach Form 5695 6 Other credits from Form: a 3800 b 8801 CO 7 Add lines 1 through 6. Enter here and include on Form 1040 or 1040-SR, line 13b. Part II Other Payments and Refundable Credits 8 2019 estimated tax payments and amount applied from 2018 return 9 Net premium tax credit. Attach Form 8962.. 10 Amount paid with request for extension to file (see instructions) 11 Excess social security and tier 1 RRTA tax withheld 12 Credit for federal tax on fuels. Attach Form 4136. 12 13 Credits from Form: a o 2439 bo Reserved co 8885 do Add lines 8 through 13. Enter here and on Form 1040 or 1040-SR, line 18d. BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 3 (Form 1040 or 1040-SR) 2019 HNMON X 00 0 9 10 11 13 14 14 0 Feedback Check My Work Incorrect JMB NO. 154 0074 2019 Attachment Sequence No. 07 SCHEDULE A Itemized Deductions (Form 1040 or 1040-SR) Go to www.irs.gov/ScheduleA for instructions and the latest (Rev. January 2020) information. Department of the Treasury Internal Attach to Form 1040 or 1040-SR. Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Name(s) shown on Form 1040 or 1040-SR your social security number Jane Smith 123-45-6781 Caution: Do not include expenses reimbursed or paid by others. Medical and 1 Medical and dental expenses (see instructions). | 1 2 Enter amount from Form 1040 or 1040-SR, line 8b... Dental Expenses [2] Multiply line 2 by 7.5% (0.075).. 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter - - Taxes You Paid 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box ... b State and local real estate taxes (see instructions). 3 0 X 5a 0 5b 0 c State and local personal property taxes 5c 0 d Add lines 5a through 5c. 5d 0 e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 5e 0 6 Other taxes. List type and amount 6 0 X 7 0 Interest You Paid 7 Add lines Se and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box 8a 9,500 Caution: Your mortgage interest deduction may be limited (see instructions). a Home mortgage interest and points reported to you on Form 1098. See instructions if limited ... b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8b c Points not reported to you on Form 1098. See instructions for special rules 8c d Mortage insurance premiums (see instructions). 8d e Add lines 8a through 8d 8e 9,500 9 Investment interest. Attach Form 4952 if required. See instructions. 9 Qualified Business Income Deduction 0123 Form 8995 Simplified Computation 2019 Attach to your tax return. Attachment Department of the Treasury Internal Revenue Go to www.irs.gov/Form8995 for instructions and the latest Sequence No. Service information. 55 Name(s) shown on return Your taxpayer identification number Jane Smith 123-45-6781 1 (a) Trade, business, or aggregation name (b) Taxpayer identification number(c) Qualified business income or loss) i Typing Services 123-45-6780 0 ii iv V 2 Total qualified business income or loss). Combine lines li through iv, column (c)... 2 0 3 Qualified business net (loss) carryforward from the prior year 3 0 Total qualified business income. Combine lines 2 and 3. If zero or less, enter-O-.... 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) 5 6 7 7 Qualified REIT dividends and qualified PTP (loss) carryforward from the prior year.. 8 Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero or less, enter-O- 8 9 REIT and PTP component. Multiply line 8 by 20% (0.20) 9 0 Qualified business income deduction before the income limitation. Add lines 5 and 9. 10 0 10 X Taxable income before qualified business income deduction 11 11 0 Net capital gain (see instructions) 12 12 0 Subtract line 12 from line 11. If zero or less, enter - - 13 13 0 14 14 0 15 Income limitation. Multiply line 13 by 20% (0.20) Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of 15 your return...... Total qualified business (loss) carryforward. Combine lines 2 and 3. If greater than zero, enter -- Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than zero, 17 enter-O-....... BAA For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 8995 (2019) 0 16 16 17 2019 Tax Rate Schedules Use the 2019 Tax Rate Schedules to compute the tax. (Note: Because the tax rate schedules are used instead of the tax tables, the amount of tax computed may vary slightly from the amount listed in the tables.) 2019 Tax Rate Schedules Single-Schedule Head of household-Schedule z 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 $ 9,700 ...... 10% $0 $0 $ 13,850 . . . . . . 10% $0 9,700 39,475 $ 970.00 + 12% 9,700 13,850 52,850 $ 1,385.00 + 12% 13,850 39,475 84,200 4,543.00 + 22% 39,475 52,850 84,200 6,065.00 + 22% 52,850 84,200 160,725 14,382.50 + 24% 84,200 84,200 160,700 12,962.00 + 24% 84,200 160,725 204,100 32,748.50 + 32% 160,725 160,700 204,100 31,322.00 + 32% 160,700 204,100 510,300 46,628.50 + 35% 204,100 204,100 510,300 45,210.00 + 35% 204,100 510,300 153,798.50 + 37% 510,300 510,300 152,380.00 + 37% 510,300 Married filing jointly or Qualifying widow(er)-Schedule Y-1 Married filing separately-Schedule Y-2 If taxable But not The tax is: of the If taxable But not The tax is: of the income is: over- amount income is: over- amount Over- over- Over- over- tps://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 9/10 0/3/21, 1:17 PM ...... 10% $o $0 19,400 78,950 168,400 321,450 408,200 612,350 $ 19,400 78,950 168,400 321,450 408,200 612,350 CengageNOWV2 Online teaching and learning resource from Cengage Learning $0 $ 9,700 ...... 10% $0 $ 1,940.00 + 12% 19,400 9,700 39,475 $ 970.00 + 12% 9,700 9,086.00 + 22% 78,950 39,475 84,200 4,543.00 + 22% 39,475 28,765.00 + 24% 168,400 84,200 160,725 14,382.50 + 24% 84,200 65,497.00 + 32% 321,450 160,725 204,100 32,748.50 + 32% 160,725 93,257.00 + 35% 408,200 204,100 306,175 46,628.50 + 35% 204,100 164,709.50 + 37% 612,350 306,175 82,354.75 + 37% 306,175 Standard Deduction Someone can claim: None You: None Age/Blindness Spouse: None Dependents (see instructions): |(2) Social security number (3) Relationship to you (4) Vif qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents O O O Wages, salaries, tips, etc. Attach Form(s) W-2. 1 1 101,000 2a Tax-exempt interest .. 2a 800 2b 700 b Taxable interest. Attach Sch. Bir required b Ordinary dividends. Attach Sch. Bif required Taxable amount .... b 3a Qualified dividends.. Standard 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 Standard Deduction, see instructions. 3b 4a IRA distributions 4a 4b Taxable amount c Pensions and annuities 4c d 4d b 5b Taxable amount. 5a Social security benefits 5a Capital gain or loss). Attach Schedule D if required. If not required, check here.. 6 -2,100 Other income from Schedule 1, line 9 7a 7a 700 Add lines 1, 2b, 3b, 46, 4d, 5b, 6, and 7a. This is your total income 7b 105,120 Adjustments to income from Schedule 1, line 22 8a 8 Subtract line 8a from line 76. This is your adjusted gross income 8b | 105,120 9 Standard deduction or itemized deductions (from Schedule A) 975 9 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A. 10 11a Add lines 9 and 10 11a 0 b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -0- 11b 80,236 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2019) x 12a 975 12b 0 13a Form 1040 (2019) Jane Smith 123-45-6781 Page 2 12a Tax (see inst.) Check if any from Form(s): 108814 20 4972 30 b Add Schedule 2, line 3, and line 12a and enter the total. 13a Child tax credit or credit for other dependents .. b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 12b. If zero or less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2, line 10. Add lines 14 and 15. This is your total tax A 13b 14 - XI 0 15 16 16 80,386 17 17-17,000 If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see instructions. Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC). 18a b Additional child tax credit. Attach Schedule 8812. 18b c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14 .. e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 18d 0 18e 975 19 17,000 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 20 21a OXI 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here Direct deposit? Routing number c Type: Checking Savings See instructions. d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax. 22 23 below. Amount 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions You Owe 24 Estimated tax penalty (see instructions).. 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return Yes. Complete with the IRS? See instructions. Designee No (Other than Designee's Phone Personal identification paid preparer) 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 Hara name no. renarer other than taynaver is based on all information of which prenarer has any knowledne Additional Income and Adjustments to OMB No 1545- SCHEDULE 1 0074 (Form 1040 or 1040-SR) Income 2019 Department of the Treasury Internal Attach to Form 1040 or 1040-SR. Attachment Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest Sequence No. information. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Jane Smith 123-45-6781 At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes. 2a Alimony received .. 10,000 b Date of original divorce or separation agreement (see instructions) 12/2013 X 3 Business income or loss). Attach Schedule C.. 6,680 4 Other gains or losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 6 Farm income or loss). Attach Schedule F. 7 Unemployment compensation .... 8 Other income. List type and amount Gambling winnings 1 2a 3 4 5 6 7 00 100 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 Part II Adjustments to Income 10 Educator expenses.... 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 10 11 12 13 14 15 16 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans 16 Self-employed health insurance deduction ... 17 Penalty on early withdrawal of savings. 18a Alimony paid b Recipient's SSN. c Date of original divorce or separation agreement (see instructions) ps://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 17 18a 4/15 Schedule 3 Complete Jane Smith's Schedule 3. 03 OMB No. 1545 SCHEDULE 3 Additional Credits and Payments 0074 (Form 1040 or 1040-SR) 2019 Attachment Department of the Treasury Internal Revenue Attach to Form 1040 or 1040-SR. Service Go to www.irs.gov/Form1040 for instructions and the latest Sequence No. information. Name(s) shown on Form 1040 or 1040-SR Your social security number Jane Smith 123-45-6781 Part I Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required. 2 Credit for child and dependent care expenses. Attach Form 2441 3 Education credits from Form 8863, line 19.......... 4 Retirement savings contributions credit. Attach Form 8880 5 Residential energy credit. Attach Form 5695 6 Other credits from Form: a 3800 b 8801 CO 7 Add lines 1 through 6. Enter here and include on Form 1040 or 1040-SR, line 13b. Part II Other Payments and Refundable Credits 8 2019 estimated tax payments and amount applied from 2018 return 9 Net premium tax credit. Attach Form 8962.. 10 Amount paid with request for extension to file (see instructions) 11 Excess social security and tier 1 RRTA tax withheld 12 Credit for federal tax on fuels. Attach Form 4136. 12 13 Credits from Form: a o 2439 bo Reserved co 8885 do Add lines 8 through 13. Enter here and on Form 1040 or 1040-SR, line 18d. BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 3 (Form 1040 or 1040-SR) 2019 HNMON X 00 0 9 10 11 13 14 14 0 Feedback Check My Work Incorrect JMB NO. 154 0074 2019 Attachment Sequence No. 07 SCHEDULE A Itemized Deductions (Form 1040 or 1040-SR) Go to www.irs.gov/ScheduleA for instructions and the latest (Rev. January 2020) information. Department of the Treasury Internal Attach to Form 1040 or 1040-SR. Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Name(s) shown on Form 1040 or 1040-SR your social security number Jane Smith 123-45-6781 Caution: Do not include expenses reimbursed or paid by others. Medical and 1 Medical and dental expenses (see instructions). | 1 2 Enter amount from Form 1040 or 1040-SR, line 8b... Dental Expenses [2] Multiply line 2 by 7.5% (0.075).. 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter - - Taxes You Paid 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box ... b State and local real estate taxes (see instructions). 3 0 X 5a 0 5b 0 c State and local personal property taxes 5c 0 d Add lines 5a through 5c. 5d 0 e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 5e 0 6 Other taxes. List type and amount 6 0 X 7 0 Interest You Paid 7 Add lines Se and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box 8a 9,500 Caution: Your mortgage interest deduction may be limited (see instructions). a Home mortgage interest and points reported to you on Form 1098. See instructions if limited ... b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8b c Points not reported to you on Form 1098. See instructions for special rules 8c d Mortage insurance premiums (see instructions). 8d e Add lines 8a through 8d 8e 9,500 9 Investment interest. Attach Form 4952 if required. See instructions. 9 Qualified Business Income Deduction 0123 Form 8995 Simplified Computation 2019 Attach to your tax return. Attachment Department of the Treasury Internal Revenue Go to www.irs.gov/Form8995 for instructions and the latest Sequence No. Service information. 55 Name(s) shown on return Your taxpayer identification number Jane Smith 123-45-6781 1 (a) Trade, business, or aggregation name (b) Taxpayer identification number(c) Qualified business income or loss) i Typing Services 123-45-6780 0 ii iv V 2 Total qualified business income or loss). Combine lines li through iv, column (c)... 2 0 3 Qualified business net (loss) carryforward from the prior year 3 0 Total qualified business income. Combine lines 2 and 3. If zero or less, enter-O-.... 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) 5 6 7 7 Qualified REIT dividends and qualified PTP (loss) carryforward from the prior year.. 8 Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero or less, enter-O- 8 9 REIT and PTP component. Multiply line 8 by 20% (0.20) 9 0 Qualified business income deduction before the income limitation. Add lines 5 and 9. 10 0 10 X Taxable income before qualified business income deduction 11 11 0 Net capital gain (see instructions) 12 12 0 Subtract line 12 from line 11. If zero or less, enter - - 13 13 0 14 14 0 15 Income limitation. Multiply line 13 by 20% (0.20) Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of 15 your return...... Total qualified business (loss) carryforward. Combine lines 2 and 3. If greater than zero, enter -- Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than zero, 17 enter-O-....... BAA For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 8995 (2019) 0 16 16 17 2019 Tax Rate Schedules Use the 2019 Tax Rate Schedules to compute the tax. (Note: Because the tax rate schedules are used instead of the tax tables, the amount of tax computed may vary slightly from the amount listed in the tables.) 2019 Tax Rate Schedules Single-Schedule Head of household-Schedule z 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 $ 9,700 ...... 10% $0 $0 $ 13,850 . . . . . . 10% $0 9,700 39,475 $ 970.00 + 12% 9,700 13,850 52,850 $ 1,385.00 + 12% 13,850 39,475 84,200 4,543.00 + 22% 39,475 52,850 84,200 6,065.00 + 22% 52,850 84,200 160,725 14,382.50 + 24% 84,200 84,200 160,700 12,962.00 + 24% 84,200 160,725 204,100 32,748.50 + 32% 160,725 160,700 204,100 31,322.00 + 32% 160,700 204,100 510,300 46,628.50 + 35% 204,100 204,100 510,300 45,210.00 + 35% 204,100 510,300 153,798.50 + 37% 510,300 510,300 152,380.00 + 37% 510,300 Married filing jointly or Qualifying widow(er)-Schedule Y-1 Married filing separately-Schedule Y-2 If taxable But not The tax is: of the If taxable But not The tax is: of the income is: over- amount income is: over- amount Over- over- Over- over- tps://v2.cengagenow.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false 9/10 0/3/21, 1:17 PM ...... 10% $o $0 19,400 78,950 168,400 321,450 408,200 612,350 $ 19,400 78,950 168,400 321,450 408,200 612,350 CengageNOWV2 Online teaching and learning resource from Cengage Learning $0 $ 9,700 ...... 10% $0 $ 1,940.00 + 12% 19,400 9,700 39,475 $ 970.00 + 12% 9,700 9,086.00 + 22% 78,950 39,475 84,200 4,543.00 + 22% 39,475 28,765.00 + 24% 168,400 84,200 160,725 14,382.50 + 24% 84,200 65,497.00 + 32% 321,450 160,725 204,100 32,748.50 + 32% 160,725 93,257.00 + 35% 408,200 204,100 306,175 46,628.50 + 35% 204,100 164,709.50 + 37% 612,350 306,175 82,354.75 + 37% 306,175
