Please complete the 2020 federal income tax return for Sarah Hamblin.

Tax Return-Project # 1, Fall 2020 Due by Exam 2 Instructions: October 21st Please complete the 2020 federal income tax return for Sarah Hamblin. It is to be done on the 2019 tax forms and use the 2020 tax rates. Be sure to include only required tax forms when completing the tax return. For purposes of this assignment, unless instructed otherwise, you do not need to attach Form 8582. Also, ignore the requirement to attach the Form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Sarah Hamblin and her now ex-husband Kevin were legally divorced on March 1, 2018. As of the end of the year, Sarah was unmarried. Sarah and Kevin had only one child, an 11-year-old girl named Elizabeth. As part of the divorce decree, Sarah was given custody of Elizabeth and Kevin was required to pay 1) child support for Elizabeth's care, and 2) alimony to Sarah until she remarries or dies. Because Kevin will be making child support payments, the divorce decree provided that Kevin will be permitted to claim the tax dependency exemption for Elizabeth until Elizabeth no longer qualifies as a tax dependent of either parent and the decree obligates Sarah to sign and/or file any required forms to cause this result to occur. Sarah rents a home (separate from Kevin) that she pays for herself. Elizabeth lives with Sarah most of the time, but she visits and stays with her father every other weekend and most holidays. During the year, Elizabeth stayed at Kevin's house a total of 84 nights. Sarah provided the following information for 2020: Sarah's Social Security number is 123-43-4321 Elizabeth's Social Security number is 123-34-1234 Sarah's mailing address is 1245 Rose Petal Drive, Middletown, Wisconsin 53562 Elizabeth is a U.S. citizen Kevin's Social Security number is 555-21-6699 . . The following was reported on Sarah's Form W-2: Employer Gross Wages Federal Income Tax Withholding 5825 State Income Tax Withholding 3,125 52,725 Central Wisconsin Heating and Air All applicable and appropriate payroll taxes were withheld by the employer. During the year, Sarah also received the following: Child Support Payment from Kevin Hamblin Alimony Payment from Kevin Hamblin Gift from her father to help with legal bills Interest income on U.S. Treasury Bond Interest income of Madison City Bond (municipal bond) Interest income from First Bank of Madison Life insurance proceeds on the death of her mother $ 8,000 $ 12,000 $ 15,000 $ 1,200 $ 650 $ 325 $ 15,000 Sarah is a 50% owner in a friend's company, Bright Day Flowers, Inc. Bright Day Flowers, Inc. (BDF) is a Subchapter Scorporation. They do consulting and are considered a Specified Service Trade company. The company reported ordinary business income for the year of $30,000. Sarah acquired the stock several years ago. Sarah worked a total of 600 hours at the BDF shop in the evenings and on the weekends during 2020. Bright Day Flowers, Inc.'s employer identification number is 56-3535353 Sarah entered a contest sponsored by a radio station and won 10 tickets to the touring Broadway-style production of Wholesome. The value of the tickets was $50 each. Sarah took her friends from work to the production Sarah lost her job with Central Wisconsin Heating and Air on March 31 because of Covid-19. She collected $3,550 in unemployment benefits during the year. She is currently looking for another job. Sarah had qualifying minimum health insurance coverage provided to her because of her employment with Central Wisconsin Heating and Air for each month in 2020 (the employer continued to cover her through the end of the year). Elizabeth had qualifying minimum health insurance coverage provided through Kevin through his work, Sarah did not own, control or manage any foreign or virtual bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year. Sarah was provided with the following benefits as part of her employment: Group-term life insurance coverage of $39,000. The cost to cover Sarah for the company for the tax year is $150. Access to the company photocopy machine. Sarah estimates she made $25 worth of copies during the year primarily for use with her church group activities. Sarah reported no itemized deductions other than any described above. Sarah does not want to contribute to the Presidential Election Campaign Fund. She would like to receive a refund (if any) of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check. Tax Return-Project # 1, Fall 2020 Due by Exam 2 Instructions: October 21st Please complete the 2020 federal income tax return for Sarah Hamblin. It is to be done on the 2019 tax forms and use the 2020 tax rates. Be sure to include only required tax forms when completing the tax return. For purposes of this assignment, unless instructed otherwise, you do not need to attach Form 8582. Also, ignore the requirement to attach the Form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Sarah Hamblin and her now ex-husband Kevin were legally divorced on March 1, 2018. As of the end of the year, Sarah was unmarried. Sarah and Kevin had only one child, an 11-year-old girl named Elizabeth. As part of the divorce decree, Sarah was given custody of Elizabeth and Kevin was required to pay 1) child support for Elizabeth's care, and 2) alimony to Sarah until she remarries or dies. Because Kevin will be making child support payments, the divorce decree provided that Kevin will be permitted to claim the tax dependency exemption for Elizabeth until Elizabeth no longer qualifies as a tax dependent of either parent and the decree obligates Sarah to sign and/or file any required forms to cause this result to occur. Sarah rents a home (separate from Kevin) that she pays for herself. Elizabeth lives with Sarah most of the time, but she visits and stays with her father every other weekend and most holidays. During the year, Elizabeth stayed at Kevin's house a total of 84 nights. Sarah provided the following information for 2020: Sarah's Social Security number is 123-43-4321 Elizabeth's Social Security number is 123-34-1234 Sarah's mailing address is 1245 Rose Petal Drive, Middletown, Wisconsin 53562 Elizabeth is a U.S. citizen Kevin's Social Security number is 555-21-6699 . . The following was reported on Sarah's Form W-2: Employer Gross Wages Federal Income Tax Withholding 5825 State Income Tax Withholding 3,125 52,725 Central Wisconsin Heating and Air All applicable and appropriate payroll taxes were withheld by the employer. During the year, Sarah also received the following: Child Support Payment from Kevin Hamblin Alimony Payment from Kevin Hamblin Gift from her father to help with legal bills Interest income on U.S. Treasury Bond Interest income of Madison City Bond (municipal bond) Interest income from First Bank of Madison Life insurance proceeds on the death of her mother $ 8,000 $ 12,000 $ 15,000 $ 1,200 $ 650 $ 325 $ 15,000 Sarah is a 50% owner in a friend's company, Bright Day Flowers, Inc. Bright Day Flowers, Inc. (BDF) is a Subchapter Scorporation. They do consulting and are considered a Specified Service Trade company. The company reported ordinary business income for the year of $30,000. Sarah acquired the stock several years ago. Sarah worked a total of 600 hours at the BDF shop in the evenings and on the weekends during 2020. Bright Day Flowers, Inc.'s employer identification number is 56-3535353 Sarah entered a contest sponsored by a radio station and won 10 tickets to the touring Broadway-style production of Wholesome. The value of the tickets was $50 each. Sarah took her friends from work to the production Sarah lost her job with Central Wisconsin Heating and Air on March 31 because of Covid-19. She collected $3,550 in unemployment benefits during the year. She is currently looking for another job. Sarah had qualifying minimum health insurance coverage provided to her because of her employment with Central Wisconsin Heating and Air for each month in 2020 (the employer continued to cover her through the end of the year). Elizabeth had qualifying minimum health insurance coverage provided through Kevin through his work, Sarah did not own, control or manage any foreign or virtual bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year. Sarah was provided with the following benefits as part of her employment: Group-term life insurance coverage of $39,000. The cost to cover Sarah for the company for the tax year is $150. Access to the company photocopy machine. Sarah estimates she made $25 worth of copies during the year primarily for use with her church group activities. Sarah reported no itemized deductions other than any described above. Sarah does not want to contribute to the Presidential Election Campaign Fund. She would like to receive a refund (if any) of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check