Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me complete the tax return forms 2020 required for this problem..... 1. Individual Return Form 1040 2020 2. Itemized Deductions: Form 1040 Schedule

Please help me complete the tax return forms 2020 required for this problem.....

1. Individual Return Form 1040 2020

2. Itemized Deductions: Form 1040 Schedule A 2020

3. Interest and Ordinary Dividends: Form 1040 Schedule B 2020

4. Capital Gains and Losses: Form 1040 Schedule D 2020

5. Capital Gains and Losses (listing): Form 1040 form 8949 2020

Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 62701. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jasons Social Security number is 111-11-1112, and Junes is 123-45-6788. Roberta has never owned or used any virtual currency. She does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta received the appropriate recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored.

Roberta, an advertising executive, earned a salary from ABC Advertising of $120,000 in 2020. Her employer withheld $19,000 in Federal income tax and $4,400 in state income tax.

Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $8,500 for Jasons support during 2020. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2020, she has decided not to do so. Roberta provides all of Junes support.

Robertas mother died on January 7, 2020. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mothers life insurance policy, Roberta received insurance proceeds of $300,000. Her mothers cost basis for the life insurance policy was $120,000. Robertas favorite aunt gave her $13,000 for her birthday in October.

On November 8, 2020, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2015. Walts cost basis for the stock was $26,000. On December 1, 2020, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2016, for $8,000.

An examination of Robertas records reveals that she received the following:

Interest income of $2,500 from First Savings Bank.

Groceries valued at $750 from Kroger Groceries for being the 100,000th customer.

Qualified dividend income of $1,800 from Amber. Interest income of $3,750 on City of Springfield school bonds.

Alimony of $16,000 from Wayne; divorce finalized in May 2017.

Distribution of $4,800 from ST Partnership (Employer Identification Number: 46-4567893). Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W2 wage limitation does not.

From her checkbook records, she determines that she made the following payments during 2020:

Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained).

Payment of $5,000 to ECM Hospital for the medical expenses of a friend from work.

Mortgage interest on her residence of $7,800 to Peoples Bank.

Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence.

Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000.

Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses.

A $1,000 ticket for parking in a handicapped space.

Attorneys fees of $500 associated with unsuccessfully contesting the parking ticket.

Contribution of $250 to the campaign of a candidate for governor.

Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $1,808.

Calculate Robertas net tax payable or refund due for 2020. Use the appropriate forms and schedules.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Auditors Guide To Auditing Financial Statements In The UK

Authors: Steve Collings

1st Edition

1526527480, 978-1526527486

More Books

Students also viewed these Accounting questions

Question

What is the difference between decision making and problem solving?

Answered: 1 week ago

Question

4. Identify cultural variations in communication style.

Answered: 1 week ago

Question

9. Understand the phenomenon of code switching and interlanguage.

Answered: 1 week ago

Question

8. Explain the difference between translation and interpretation.

Answered: 1 week ago