Please fill out a tax Form 1040 with the information given.
COMPREHENSIVE PROBLEM 7-62 Dan M. and Cheryl A. Peters are married, file a joint return, and have no children. Dan, age 45, is an independent contractor working in pharmaceutical sales and Cheryl, age 42, is a nurse at a local hospital. Dan's SSN is 400-20-0000 and Cheryl's SSN is 200-40-0000 and they reside at 2033 Palmetto Drive, Atlanta, GA 30304. Dan is paid according to commissions from sales, and he has no income tax or payroll tax withholdings. Dan oper- ates his business from his home office. During 2019, Dan earned total commissions in his business of $125,000. Cheryl earned a salary during 2019 of $45,400, with the following withholdings: $6,000 federal taxes, $1,800 state taxes, $2,815 OASDI (Social Security), and 5658 Medicare taxes. During 2019, Dan and Cheryl had interest income from corporate bonds and bank ac- counts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2019: LTCG $4,900 LTCL (3,200) STCG 0 STCL (7,800) He had no capital loss carryovers from previous years. Basis for the stocks were re- ported to the IRS by the brokerage firm. Dan does a considerable amount of travel in connection with his business and uses his own car. During 2019, Dan drove his car a total of 38,000 miles, of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the follow- ing travel expenses while away from home during the year: Hotel $4,200 Meals 820 Entertainment of customers 1,080 Tips 100 Laundry and cleaning 150 Total $6,350 Dan uses the simplified method to deduct expenses for his office-in-home. His office measures 15 feet by 12 feet in size. Cheryl incurred several expenses in connection with her nursing job. She paid $450 in professional dues, $200 in professional journals, and $350 for uniforms. Dan and Cheryl had the following other expenditures during the year: Health insurance premiums (after-tax) $ 4,400" Doctor bills 470 Real estate taxes on home 6,800 Personal property taxes 1,400 Mortgage interest-all deductible 7,400 Charitable contributions cash 9.000 Charitable contributions-Apple stock owned for 5 years: FMV $8,000 Adjusted basis 2,000 Tax preparation fees ($250 allocated to Dan's business) 750 * Paid by Dan in connection with his business.U.S. Individual Income Tax Return 2019 OMB Na. 1545-0074 Filing Status Singla Married filing jointly Married filing sopartly (MFS) Handel household (HOH) Qualifying widower) [OW; Chuck only I you checked the MFS box, inter the name of spouse. If you checked the HCH or OW box, inter the child's name il the quillying person is and bun. a child but not your dependant. I Your first name and midle initial Last name Your social security number Dan M Peters 400240000 Ijoint nitum, Spouse's first name and midela initia Last name Spouse's social security number Cheryl A Peters 20 0 4 0000 Homa addnicht (number and street, If you haven PLO. box, sin Instructions. ApL no. Presidential Election Campaign 2033 Palmetto Drive wick him if you or pour ipoua if ting Jordy, want $5 to go to this fund. City, Bown or pool office, state, and ZIP enda. If you have a fomign adorices, also complete spaces bilow join instructions). Checking in bas ballew will not change your Atlanta, GA, 30304 You Spouse Forsign country name Fowler provinces failed county on qu postil coda if more than four chipendants, Standard Someone can claim: | You as a dapandant Your spouse is a dependant Deduction AgarBlindness Your Warn born before January 2, 1956 Are bind Spouse: With bam before January 2, 1065 Is blind Dependents (soo instructionst () Social security funder 14 / l qualifies for pat instructionsj 1) Fist mara Credit for other dopendants Wages, salarin, tips, ate. Allach Formb] W-2 - b Taxable hionait Allach Sch Bil required Qualfind dividanda b Ordinary dividanda Attach Sch. B if naquinid Standard Deduction for- 4a b Taxable amount Singda or Married Ting upicy d Table amount Social security banafits . b Tanthe amount Capital gain or (lass). Attach Schedule D if required. If not required, chick him Other heoma from Schedula 1, Ina 9 b Add Inan 1, 26, 36, 4h, 4d, 56, 8, and Fa. This is your total income Add unitmanta Be income from Behadula 1, lins 22 Subinici Iina Ba from lima Th. This to your adjusted gross income Standard deduction or itemized deductions from Behadvis Al 10 wininction Qualified business income deduction. Attach Form 805 or Form 8015-A Add Inas J and 10 - 11: Trouble Income. Bubfract lim 1 1a from Ina Bb. I career Mass, and For Disclosure, Privacy Act, and Paperwork wha instructions. For 1040 204)
