Please complete a 2020 Form 1040 for Fareh:

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. Farehs 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 residence 6,950

State and local property tax on residence 8,350

Property tax included in personal auto registration 260

State sales taxes paid 370

State income taxes paid 1,450

Charitable contributions of cash 1,750

Political contributions 550

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.

Use the 2020 tax forms. Use 2020 tax rates.