Please check my work

Tax Return 1, Fall 2020

Fareh is not married and supports her 12-year old child who lives with her.Fareh works as an employee with gross salaries and wages of $92,000.Fareh's only other income was interest of $7,300, qualifying dividends of $2,450, and other information follows:

Contribution to Sec. 401(k) retirement plan, withheld from the

Gross salary above$ 3,500

Loss on sale of Alphatech stock held 2 years-3,400

Mortgage interest on primary residence6,950

State and local property tax on residence8,350

Property tax included in personal auto registration260

State sales taxes paid370

State income taxes paid 1,450

Charitable contributions of cash1,750

Political contributions550

Three comments that will help:

The Sec. 401(k) contribution was withheld from salary, so reported salary from the W-2 is $88,500.

Qualified dividends are included in ordinary dividends on the form 1040.

You are not required to complete the Schedule D Worksheet.Just consult the last example in "drnos Capital Gain calcs 2020.ppt" to calculate the tax.

ANSWER

Calculation of Farah's Income Tax Returns

Gross Salary and wages

92000

Less: Contribution to retirement plan

-3500

Income from house property

Less: net annual value of house pro

Less: Mortgage interest on primery residence

-6950

Add: Other Income

Interest Income

7300

Dividend Income

2450

Les:

Loss of stock held on 2 years

-3400

state sales tax paid

-370

state income tax paid

-1450

charitable contribution of cash

-1750

Taxable Income

84330