Please complete the required 2019 federal individual income tax return for the following taxpayer. You must complete the forms neatly by hand. You may not use any tax return preparation software. you can access the forms from the Internal Revenue Service website at irs.gov. You will need to complete Form 1040, pages 1 and 2, Schedule B, and Schedule C (first page only). If you conclude that the taxpayer should itemize deductions, then also complete Schedule A, Itemized Deductions.

Also:

• Please round all tax return entries to the nearest dollar.
• Please use the tax rate schedule at the back of your text to calculate any tax liability.
• AGI should equal $55,527, and total tax on line 16 should equal $4,461.

Jane Kirk, age 49, lives in Any Town, Missouri. Janes father, Leonard Spock, lives in his own home near his daughters home. Leonards gross income for the year is $3,000, and Jane provided more than half of his support for the year.

The following information relates to Janes tax year:

• Janes Social Security number is XXX-45-1234.
• Leonards Social Security number is XXX-37-4893.
• Janes mailing address is 123 Bear Drive, Any Town, Missouri 65897.

Jane Kirk received the following Form W-2 with information regarding her wages during the year:

1. wages, tips, other compensation $50000

2. federal income tax withheld $6000

17. state income tax $3000

All applicable and appropriate payroll taxes were withheld by Janes employer.

Later in the tax year, Jane decided to quit her job and become self-employed as a freelance copy editor. For tax year 2019 Jane had the following income and expenses related to her sole proprietorship:

• Sales revenue (see Forms 1099 below) $3,000
• Internet access $500
• Office supplies $200
• Jane will owe $325 in self-employment tax, of which, $163 is the employer portion.
• Jane uses the cash method of accounting, and she materially participated in this business.

Jane Kirk also received the following during the year:

• Interest income from Missouri State Bank $90
• Interest income from City of Any Town, MO Bond $350
• Interest income from U.S. Treasury Bond $700
• Workers compensation $4,250
• Disability payments received on account of injury $3,600
  • Janes employer paid 100% of the premiums on the policy and included the premium payments in Janes taxable wages.
• Gambling winnings $100
• Receipt of payment as a result of a lawsuit for damages sustained in a car accident:
  • Medical Expenses $3,000
  • Emotional Distress $10,500
  • Punitive Damages $11,000
  • Total $24,500

Jane did not own, control or manage any foreign bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year.

Jane Kirk paid the following expenses during the year:

Dentist/Orthodontist (unreimbursed by insurance) $1,550

Doctors (unreimbursed by insurance) $ 675

Prescriptions (unreimbursed by insurance) $ 390

Real property tax on residence $1,200

Vehicle (personal) property tax based upon value of cars $ 400

Mortgage interest on principal residence $5,000

Contribution to Red Cross $ 500

Contribution to state senator re-election campaign $ 600

Contribution to First Methodist Church of Any Town $4,000

Contribution to financially struggling neighbor $ 250

Jane also paid $2,600 in student loan interest during the year on a qualified education loan.

Jane drove 500 miles in total to receive medical treatment at a hospital in March.

Jane would like to contribute the maximum deductible contribution to her IRA account. She does not participate in an employer sponsored retirement plan.

Jane wants to contribute to the Presidential Election Campaign. 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.