Please fill out form 1040 and use 2019 tax rules!!!
Monica Smith 1. Monica Smith and her ex-husband James were legally divorced on March 1, 2019. As of the end of the year, Monica was unmarried. Monica and James had only one child, an 11 year old girl named Sophia. As part of the divorce decree, Monica was given custody of Sophia and James was required to pay 1) child support for Sophia's care, and 2) alimony to Monica until she remarries or dies. Because James will be making child support payments, the divorce decree provided that James will be permitted to claim Sophia as a tax dependent until Sophia no longer qualifies as a tax dependent of either parent and the decree obligates Monica to sign and/or file any required forms to cause this result to occur. 2. Monica rents a home (separate from James) that she pays for herself. Sophia lives with Monica most of the time but she visits and stays with her father every other weekend and most holidays. During the year, Sophia stayed at James's house a total of 74 nights. 3. Monica provided the following information for 2019: Monica's Social Security number is 123-43-4321 Sophia's Social Security number is 123-34-1234 Monica's mailing address is 5424 Northumberland St, Macyson, Wisconsin 53562 Sophia is a U.S.citizen . 4. The following was reported on Monica's Form W-2: Employer Gross Wages Federal Income Tax Withholding Central Wisconsin 66,500 7,950 Heating and Air State Income Tax Withholding 2,375 All applicable and appropriate payroll taxes were withheld by the employer. 5. During the year, Monica also received the following: Child Support Payment from James Smith Alimony Payment from James Smith 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 $20,000 $15,500 $50,500 $ 500 $ 1,000 $ 300 $75,000 6. Monica lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. She collected $1,680 in unemployment benefits during the year. She is currently looking for another job. 7. Monica 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 $150 each. Monica took her friends from work to the production. 8. Monica had qualifying minimum health insurance coverage provided to her because of her employment with Central Wisconsin Heating and Air for each ponth in 2019 (the employer continued to cover her through the end of the year). Sophia hted qualifying minimum health insurance coverage provided through James through his work. 9. Monica 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. 10. Monica reported no itemized deductions other than any described above. 11. Monica 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. Assignment Complete Monica Smith's Federal income tax return for 2019. Assume that Monica is filing her return on time (before April 15, 2020). In preparing the return, you will need to use Form 1040 and Schedule 1. Upload a copy of your completed tax return for Monica Smith on Moodle by October 13. Include your name in the file name. Monica Smith 1. Monica Smith and her ex-husband James were legally divorced on March 1, 2019. As of the end of the year, Monica was unmarried. Monica and James had only one child, an 11 year old girl named Sophia. As part of the divorce decree, Monica was given custody of Sophia and James was required to pay 1) child support for Sophia's care, and 2) alimony to Monica until she remarries or dies. Because James will be making child support payments, the divorce decree provided that James will be permitted to claim Sophia as a tax dependent until Sophia no longer qualifies as a tax dependent of either parent and the decree obligates Monica to sign and/or file any required forms to cause this result to occur. 2. Monica rents a home (separate from James) that she pays for herself. Sophia lives with Monica most of the time but she visits and stays with her father every other weekend and most holidays. During the year, Sophia stayed at James's house a total of 74 nights. 3. Monica provided the following information for 2019: Monica's Social Security number is 123-43-4321 Sophia's Social Security number is 123-34-1234 Monica's mailing address is 5424 Northumberland St, Macyson, Wisconsin 53562 Sophia is a U.S.citizen . 4. The following was reported on Monica's Form W-2: Employer Gross Wages Federal Income Tax Withholding Central Wisconsin 66,500 7,950 Heating and Air State Income Tax Withholding 2,375 All applicable and appropriate payroll taxes were withheld by the employer. 5. During the year, Monica also received the following: Child Support Payment from James Smith Alimony Payment from James Smith 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 $20,000 $15,500 $50,500 $ 500 $ 1,000 $ 300 $75,000 6. Monica lost her job with Central Wisconsin Heating and Air on November 15 because of a reduction in work force. She collected $1,680 in unemployment benefits during the year. She is currently looking for another job. 7. Monica 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 $150 each. Monica took her friends from work to the production. 8. Monica had qualifying minimum health insurance coverage provided to her because of her employment with Central Wisconsin Heating and Air for each ponth in 2019 (the employer continued to cover her through the end of the year). Sophia hted qualifying minimum health insurance coverage provided through James through his work. 9. Monica 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. 10. Monica reported no itemized deductions other than any described above. 11. Monica 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. Assignment Complete Monica Smith's Federal income tax return for 2019. Assume that Monica is filing her return on time (before April 15, 2020). In preparing the return, you will need to use Form 1040 and Schedule 1. Upload a copy of your completed tax return for Monica Smith on Moodle by October 13. Include your name in the file name
