Please give DETAILED explanations and show all of the 2020 IRS Forms that need to be used. Thankyou
Instructions: Please complete the 2020 federal income tax return for Ellen Williams. 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. Ellen Williams has undergone some major changes in her life recently. In 2017, at the age of 46, her husband, Roger, passed away. Ellen has not remarried as of the end of 2020. Ellen currently lives in Bedford, Pennsylvania. She was living in Pittsburgh when her husband passed away but she moved back to her childhood home so she could get help from her family raising her children. Ellen was employed in Pittsburgh early in the year but left that job and relocated 100 miles away to pursue a new life and start her new job. Ellen has three children (ages as of the end of the year): Roz (23), Tyler (16), and Connor (11). Ellen would like to determine her federal income tax under the filing status that is most advantageous for her. Ellen reported the following information: Eller's social security number is 294-83-2845 Roz's social security number is 824-84-8456 Tyler's social security number is 824-34-9584 Connor's social security number is 824-56-2984 . Eller's mailing address is 623 S. Liberty Road Bedford, Pennsylvania 15522 Roz is unmarried and a full-time graduate student at Pennsylvania State University (PSU) (EIN 33. 9876543), PSU's address is 1250 Happy Valley, State College, PA 16801. She received her bachelor's degree the year her father passed away. This year represents her fifth year of full-time higher education schooling, Rox works part-time in State College to help with some of her living expenses. Roz earned $2,300 in gross income during the year and had her income tax return prepared on campus by Volunteer Income Tax Asistance (VITA) volunteers, Ellen provided support for Roz including paying for rent, books, tuition, food, clothes, medicine, and other support items. In total, Ellen provided $12,700 of support for the year. Psu provided Rox with a Form 1098-T at year end. Rox's higher education expenses for her university studies were as follows: Tuition $6,500 Books $2,000 In order to for Ellen to maintain a full-time job, she sends Connor to a day care program after school five days a week. During the vear Flien said the day care operator $4.250 for Connor's care days a week. During the year, Ellen paid the day care operator $4,250 for Connor's care. The day care details are as follows: Horizon Day Care 452 S. Patriot Road Bedford, PA 15522 EIN: 43-6598324 Ellen's W-2s for the year reported the following: Employer Gross Wages Juniata Development Corporation Pittsburgh Real Estate Federal Income Tax Withholding $1,100 $40.568 State Income Tax Withholding $700 $3,455 $250 $125 Ellen's employers withheld all applicable and appropriate payroll taxes On January 1, 2018 (prior year), Ellen started a photography business in which she takes bridal and wedding photographs. She does not do any of the professional printing. However, she provides all the digital files to her clients on a password protected website as part of her service. This unique service, along with her skill and reputation has lowed her to earn additional money on the weekends primarily in the summer, to help support her daughter in college. Ellenrents all the camera equipment and does not currently own any equipment hentet. The photography business uses the cash method of accounting. The business did not have any option to file a Form 1099 to any payee during the year Ellen reported the following revenue and expenses for her business this year Grass Revenue 56,500 Photothic supplies 5430 Gross Revenue $6,500 Photographic supplies $ 430 Camera rental $1,050 Web site hosting fee $ 200 Ellen also received the following amounts in 2020: Life Insurance Payment-Mutual Life (Mother's passing) $150,000 Cash gift from her father $5,000 Interest income-First Bank of Bedford $ 310 Interest income-General Electric Bond $ 3,200 Interest income-Bedford School District Municipal Bond $ 2,500 Interest income-Johnstown Rural Improvement District Bond $ 1,300 PA state income tax refund $325 *Refund was from state tax she paid in 2018. Ellen deducted all her state taxes as itemized deductions, and received full tax benefit for the deductions, on her 2018 federal tax return. Ellen 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. Ellen made the following payments during 2020: Dentist (unreimbursed by insurance) $1,500 Doctors (unreimbursed by Insurance) $ 475 Prescriptions (unreimbursed by insurance) $ 255 Real property taxes on residence $ 950 Vehicle registration fee based upon age of vehicle S 175 Mortgage interest on principal residence (Form 1098 received) $6,845 Contribution to the American Lung Association Contribution to the Habitat for Humanity $ 600 Contribution to Methodist Church of PA $1,000 Contribution to Penn State University $3,000 5 400 Ellen wants 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. 1 Instructions: Please complete the 2020 federal income tax return for Ellen Williams. 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. Ellen Williams has undergone some major changes in her life recently. In 2017, at the age of 46, her husband, Roger, passed away. Ellen has not remarried as of the end of 2020. Ellen currently lives in Bedford, Pennsylvania. She was living in Pittsburgh when her husband passed away but she moved back to her childhood home so she could get help from her family raising her children. Ellen was employed in Pittsburgh early in the year but left that job and relocated 100 miles away to pursue a new life and start her new job. Ellen has three children (ages as of the end of the year): Roz (23), Tyler (16), and Connor (11). Ellen would like to determine her federal income tax under the filing status that is most advantageous for her. Ellen reported the following information: Eller's social security number is 294-83-2845 Roz's social security number is 824-84-8456 Tyler's social security number is 824-34-9584 Connor's social security number is 824-56-2984 . Eller's mailing address is 623 S. Liberty Road Bedford, Pennsylvania 15522 Roz is unmarried and a full-time graduate student at Pennsylvania State University (PSU) (EIN 33. 9876543), PSU's address is 1250 Happy Valley, State College, PA 16801. She received her bachelor's degree the year her father passed away. This year represents her fifth year of full-time higher education schooling, Rox works part-time in State College to help with some of her living expenses. Roz earned $2,300 in gross income during the year and had her income tax return prepared on campus by Volunteer Income Tax Asistance (VITA) volunteers, Ellen provided support for Roz including paying for rent, books, tuition, food, clothes, medicine, and other support items. In total, Ellen provided $12,700 of support for the year. Psu provided Rox with a Form 1098-T at year end. Rox's higher education expenses for her university studies were as follows: Tuition $6,500 Books $2,000 In order to for Ellen to maintain a full-time job, she sends Connor to a day care program after school five days a week. During the vear Flien said the day care operator $4.250 for Connor's care days a week. During the year, Ellen paid the day care operator $4,250 for Connor's care. The day care details are as follows: Horizon Day Care 452 S. Patriot Road Bedford, PA 15522 EIN: 43-6598324 Ellen's W-2s for the year reported the following: Employer Gross Wages Juniata Development Corporation Pittsburgh Real Estate Federal Income Tax Withholding $1,100 $40.568 State Income Tax Withholding $700 $3,455 $250 $125 Ellen's employers withheld all applicable and appropriate payroll taxes On January 1, 2018 (prior year), Ellen started a photography business in which she takes bridal and wedding photographs. She does not do any of the professional printing. However, she provides all the digital files to her clients on a password protected website as part of her service. This unique service, along with her skill and reputation has lowed her to earn additional money on the weekends primarily in the summer, to help support her daughter in college. Ellenrents all the camera equipment and does not currently own any equipment hentet. The photography business uses the cash method of accounting. The business did not have any option to file a Form 1099 to any payee during the year Ellen reported the following revenue and expenses for her business this year Grass Revenue 56,500 Photothic supplies 5430 Gross Revenue $6,500 Photographic supplies $ 430 Camera rental $1,050 Web site hosting fee $ 200 Ellen also received the following amounts in 2020: Life Insurance Payment-Mutual Life (Mother's passing) $150,000 Cash gift from her father $5,000 Interest income-First Bank of Bedford $ 310 Interest income-General Electric Bond $ 3,200 Interest income-Bedford School District Municipal Bond $ 2,500 Interest income-Johnstown Rural Improvement District Bond $ 1,300 PA state income tax refund $325 *Refund was from state tax she paid in 2018. Ellen deducted all her state taxes as itemized deductions, and received full tax benefit for the deductions, on her 2018 federal tax return. Ellen 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. Ellen made the following payments during 2020: Dentist (unreimbursed by insurance) $1,500 Doctors (unreimbursed by Insurance) $ 475 Prescriptions (unreimbursed by insurance) $ 255 Real property taxes on residence $ 950 Vehicle registration fee based upon age of vehicle S 175 Mortgage interest on principal residence (Form 1098 received) $6,845 Contribution to the American Lung Association Contribution to the Habitat for Humanity $ 600 Contribution to Methodist Church of PA $1,000 Contribution to Penn State University $3,000 5 400 Ellen wants 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. 1
