Please complete the 2020 federal income tax return for Sarah Woods. 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 8582. Also, ignore the requirement to attach the form W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Sarah woods and her now ex-husband Kevin were legally divorced on March 1, 2017 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. 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 house (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 74 nights. Sarah provided the following information for 2020: Sarah's Social Security number is 123-45-4321. Her DOB is 4/15/85 Elizabeth's Social Security number is 123-34-1234. Her DOB is 10/12/09 Sarah's mailing address is 1245 Rose Petal Drive, Middletown, WI 53562 Elizabeth is a US citizen The following was reported on Sarah's Form W2: Employer Gross Wages Federal Income State Income The following was reported on Sarah's Form W2: Employer Gross Wages Federal Income State Income Tax Withholding Tax Withholding $7,250 $2,025 Central Wisconsin Heating and Air $40,150 All Applicable and appropriate payroll taxes were withheld by the employer. During the year, Sarah also received the following: Child Support Payments from Kevin Wood Alimony Payment from Kevin Wood Gift from her father to help with legal bills Interest Income on US Treasury Bond Interest Income on Madison City Bond (municipal bond) Interest Income from First bank of Madison Life Insurance proceeds on the death of her mother $12,000 $16,000 $ 8,500 $ 400 $ 250 $ 205 $45,000 Styles Sarah is a 50% owner in a friend's company, Bright Day Flowers, Inc. Bright Day Flowers, Inc. (BDF) is a Subchapter S corporation. The company reported ordinary business income for the year of $24,000. 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. Consider the income to be non-passive. Sarah entered a contest sponsored by a radio station and won 10 tickets to the touring Broadway-style production of Hamilton. The value of the tickets was $200 each. Sarah took her friends from work to the production. Sarah lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. She collected $1,750 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 bank accounts nor was she a grantor or beneficiary of a foreign trust during the year. Sarah was provided with the following benefits as part of her employment: Group-term life insurance coverage of $50,000. The cost to cover Sarah for the company for the tax year is $150 Access to the company photocopy machine. Sarah estimates she made $14 worth of copies during the year primarily for use with her church group activities. Sarah reported no itemized deductions other than any described above. . aury and I lui Ca TOTUT ZUZU 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 bank accounts nor was she a grantor or beneficiary of a foreign trust during the year. Sarah was provided with the following benefits as part of her employment: . Group-term life insurance coverage of $50,000. The cost to cover Sarah for the company for the tax year is $150. Access to the company photocopy machine. Sarah estimates she made $14 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. (Form 1040) HUVILINIAI MICUM HU AUJUSLINTLS LU MICUM Department of the Treasury Attach to Form 1040,1040-SR, or 1040-NR. Internal Revenue Service Go to www.irs.gov/Form 10-40 for instructions and the latest Information. Attachment Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 2020 2a Part 1 Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule C 3 4 Other gains or losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 5 6 Farm income or (loss). Attach Schedule F 6 7 Unemployment compensation 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR. line 8 9 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE 14 11 O 1 Please complete the 2020 federal income tax return for Sarah Woods. 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 8582. Also, ignore the requirement to attach the form W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Sarah woods and her now ex-husband Kevin were legally divorced on March 1, 2017 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. 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 house (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 74 nights. Sarah provided the following information for 2020: Sarah's Social Security number is 123-45-4321. Her DOB is 4/15/85 Elizabeth's Social Security number is 123-34-1234. Her DOB is 10/12/09 Sarah's mailing address is 1245 Rose Petal Drive, Middletown, WI 53562 Elizabeth is a US citizen The following was reported on Sarah's Form W2: Employer Gross Wages Federal Income State Income The following was reported on Sarah's Form W2: Employer Gross Wages Federal Income State Income Tax Withholding Tax Withholding $7,250 $2,025 Central Wisconsin Heating and Air $40,150 All Applicable and appropriate payroll taxes were withheld by the employer. During the year, Sarah also received the following: Child Support Payments from Kevin Wood Alimony Payment from Kevin Wood Gift from her father to help with legal bills Interest Income on US Treasury Bond Interest Income on Madison City Bond (municipal bond) Interest Income from First bank of Madison Life Insurance proceeds on the death of her mother $12,000 $16,000 $ 8,500 $ 400 $ 250 $ 205 $45,000 Styles Sarah is a 50% owner in a friend's company, Bright Day Flowers, Inc. Bright Day Flowers, Inc. (BDF) is a Subchapter S corporation. The company reported ordinary business income for the year of $24,000. 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. Consider the income to be non-passive. Sarah entered a contest sponsored by a radio station and won 10 tickets to the touring Broadway-style production of Hamilton. The value of the tickets was $200 each. Sarah took her friends from work to the production. Sarah lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. She collected $1,750 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 bank accounts nor was she a grantor or beneficiary of a foreign trust during the year. Sarah was provided with the following benefits as part of her employment: Group-term life insurance coverage of $50,000. The cost to cover Sarah for the company for the tax year is $150 Access to the company photocopy machine. Sarah estimates she made $14 worth of copies during the year primarily for use with her church group activities. Sarah reported no itemized deductions other than any described above. . aury and I lui Ca TOTUT ZUZU 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 bank accounts nor was she a grantor or beneficiary of a foreign trust during the year. Sarah was provided with the following benefits as part of her employment: . Group-term life insurance coverage of $50,000. The cost to cover Sarah for the company for the tax year is $150. Access to the company photocopy machine. Sarah estimates she made $14 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. (Form 1040) HUVILINIAI MICUM HU AUJUSLINTLS LU MICUM Department of the Treasury Attach to Form 1040,1040-SR, or 1040-NR. Internal Revenue Service Go to www.irs.gov/Form 10-40 for instructions and the latest Information. Attachment Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 2020 2a Part 1 Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule C 3 4 Other gains or losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 5 6 Farm income or (loss). Attach Schedule F 6 7 Unemployment compensation 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR. line 8 9 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE 14 11 O 1