Question
Please help me asap Jack and Diane (two American kids from the heart land) were married in 2020 on November 8. Jack is a lawyer
Please help me asap
Jack and Diane (two American kids from the heart land) were married in 2020 on November 8. Jack is a lawyer with a local law firm. Diane is a school teacher, teaching the 3rd grade at a local elementary school (public). During the year, they had the following items for their income:
a. Salary for Jack: $200,000
b. Salary for Diane: $65,000
c. Jack received a bonus for performance of $5,000
d. Dividend income of $3000, $2700 of which was received from US companies and $300 from a corporation located in the Cayman Islands.
e. $4000 from the city of Fairfax for purchase of the bonds used to fund a high school library.
f. During 2020, Jack was in a car crash and was compensated $3000 for car injuries and $8,000 for lost wages due to being in the hospital for 2 weeks.
g. In 2020, Diane sold some investments listed in her IRA for a total gain of $4000.
h. Jack had stock losses of $15,000 in 2019 and $7,000 carried over into 2020. Jack had no capital gains or losses in 2020.
i. Jack contributed $5000 to a traditional IRA
j. Diane is a part owner of land, which discovered oil in 1997. From this she receives royalties of $1500 per year.
What is the total income reported on Line 9 of Schedule 1, Part I ?
What is the total deduction allowed for the IRA Contribution ?
How are the dividends taxed ?
How would the bonds be differently handled if they were for a school library in London, England?
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