Please help me with this 2019 tax return. All boxes filled with numbers have been verified as accurate. Any parts of this question where I need assistance are highlighted in yellow. I believe any additional relevant documents have been provided, including the 2019 Tax Rate Schedule and the 2020 Tax Rate Schedule (for the 2020 tax planning at the end of these images). Thank you so much!

65,000.00 Note: This problem is for the 2019 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth was born on July 4, 1973, and her Social Security number is 123-45-6785. She wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2019. Line Description Amount 1 Wages, tips, other compensation $65,000.00 2 Federal income tax withheld 9,500.00 3 Social Security wages 65,000.00 Social Security tax withheld 4,030.00 Medicare wages and tips 6 Medicare tax withheld 942.50 eur 15 State Arizona AL 16 State wages, tips, etc. 65,000.00 17 State income tax withheld 1,954.00 During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2019. On her 2018 Federal income tax return, she used the standard deduction. Fees earned from her part-time tax practice in 2019 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax retur service. On February 8, 2019, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2019, Beth sold the stock for $14 a share. Beth bought a used sport utility vehicle for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehicle to a friend for $6,500. On January 2, 2019, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2019, for $55 a share. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business. Cost of personal computer $7,000 Cost of printer 2,000 Furniture 3,000 Supplies 650 Fee paid to computer consultant 3,500 Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of $ 179. These items were placed in service on January 15, 2019, and used 100% in her business. Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for doctor interest to credit card bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated taxes of $1,000. Beth does not own or use any virtual currency. Required: Compute the net tax payable or refund due for Beth R. Jordan for 2019. You will need Form 1040, (and its Schedules 1, 2,3, B, C, D, and SE) and Forms 4562, 8995 and 8949 and the Qualified Dividends and Capital Gain Tax Worksheet. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless instructed otherwise. It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2019 Tax Rate Schedule provided. Do not use the Tax Tables. . . Form 1040 Complete Form 1040 for Beth Jordan for 2019. 2019 OMB No. 1545-0074 IRS Use Only Perm Department of the Terry-Internal Revenue Service (29) 1040 U.S. Individual Income Tax Return Filing Status Single Your first name and middle initial Last name Beth R. Jordan If joint return, spouse's first name and middle initial Last name Your social security number 123-45-6785 Spouse's social security number Apt, no Home address (number and street). If you have a P.O. box, see instructions. 2322 Skyview Road City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Mesa, AZ 85201 Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You If more than four dependents, See instructions and here Foreign country name Foreign province/state/county Foreign postal code Standard Deduction Someone can claim: None Age/Blindness You: None Spouse: None Dependents (see instructions): (2) Social security number (1) First name Last name (3) Relationship to you (4) Vif qualifies for (see instructions): Child tax credit Credit for other dependents 0 0 0 0 1 Wages, salaries, tips, etc. Attach Form(s) W-2... 1 65000 b 2a Tax-exempt interest .. 2a Taxable interest. Attach Sch. B required 1700 2b b 2200 3b b Ordinary dividends. Attach Sch. B if required Taxable amount Taxable amount .......... Taxable amount 4b 4d d b b 5b Standard Deduction 3a Qualified dividends... for- 2200 3a Single or Married 4a IRA distributions ..... 4a filing separately, c Pensions and annuities 4c 5a Social Security benefits Sa $12,200 6 Married filing Capital gain or loss). Attach Schedule D if required. If not required, check here... O jointly or Qualifying 7a Other income from Schedule 1, line 9. widow(er), $24,400 Add lines 1, 2b, 30, 40, 40, 5b, 6, and 7a. This is your total income 1200 6 3050 7a 73150 7b Head of household, $18,350 Ba Adjustments to income from Schedule 1, line 22..... 216 Ba 72934 b Subtract line 8a from line 7b. This is your adjusted gross income. If you checked any box 9 Standard deduction or itemized deductions (from Schedule A) 12200 9 under Standard Deduction, sec 110 Qualified business income deduction. Attach Form 8995 or Form 8995-A. Please Help instructions 10 11a Add lines 9 and 10 ......... Please Help 11a b Please Help 11b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O-............ BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2019) Form 1040 (2019) 123-45-6785 Page 2 Please Help 12a Beth R. Jordan 12a Tax (see inst.) Check If any from Form(s): 108814 20 4972 30.................. b Add Schedule 2, line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents ............ b Add Schedule 3, line 7, and line 13a and enter the total... 14 Subtract line 13b from line 12b. If zero or less, enter-0- Please Help 12b 13a1 13b 14 Please Help 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 431 16 Add lines 14 and 15. This is your total tax..... 16 Please Help 17 Federal income tax withheld from Forms W-2 and 1099 9500 17 18 18a If you have a qualifying child, Other payments and refundable credits:.. a Earned income credit (EIC)..... b Additional child tax credit. Attach Schedule 8812.. c American opportunity credit from Form 8863, line 8 18b 18c attach Sch. EIC. 18d d Schedule 3, line 14 If you have nontaxable combat pay, see instructions. 1000 e Add lines 18a through 18d. These are your total other payments and refundable credits 1000 18e | 24 | 19 Add lines 17 and 18e. These are your total payments. 19 10500 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you over paid , Please Help 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here Please Help 21a Direct deposit? Routing number Mc Type: Checking Savings c o O See instructions. d d Account number 1 22 Amount of line 20 you want applied to your 2020 estimated tax...... .............. 22 Amount You 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions ............. 23 Owe 24 Estimated tax penalty (see instructions).............. Third Party Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. No Designee (Other than Designee's Phone Personal identification paid preparer) name no. number (PIN) DEBE Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here Joint return? See (see Tax Accountant instructions. Keep a inst.) ) copy for your records. Spouse's signature. If a joint Date Spouse's occupation If the IRS sent your spouse an return, both must sign. Identity Protection PIN, enter it here (see inst.) Phone no. Email address Paid Preparer's name Preparer's signature Date PTIN Check if: Self-Prepared 3rd Party Designee Preparer Firm's name Phone no. Self-employed Use Only Firm's address Firm's EIN Go to www.lrs.gov/Form1040 for instructions and the latest information. Form 1040 (2019) of the amount over $ 0 13,850 52,850 84,200 160,700 204,100 510,300 2019 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable of the If taxable income is: But not amount income is: But not Over- over- The tax is: over Over over The tax is: $ 0 S 9,700 .........10% $ 0 $ 0 $ 13,850 ......... 10% % 9,700 39,475 S 970.00 + 12% 9,700 13,850 52,850 $ 1,385.00 +12% 39,475 84,200 4,543.00 + 22% 39,475 52,850 84,200 6,065.00+ 22% 84,200 160,725 14,382.50 + 24% 84,200 84,200 160,700 12,962.00 + 2496 160,725 204,100 32,748.50 + 32% 160,725 160,700 204,100 31,322.00 + 32% 204,100 510,300 46,628.50 + 35% 204,100 204,100 510,300 45,210.00 + 35% 510,300 153,798.50 + 37% 510,300 510,300 152,380.00 + 37% Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But not Over- over The tax is: over Over over- The tax is: $ 0 $ 19,400 ...10% $ 0 $ 0 $ 9,700 .........10% 19,400 78,950 $ 1,940.00 + 12% 19,400 9,700 39,475 $ 970.00 + 12% 78,950 168,400 9,086.00 + 22% 78,950 39,475 84,200 4,543.00 + 22% 168.400 321,450 28,765.00 + 24% 168,400 84,200 160,725 14,382.50 +24% 321,450 408.200 65,497.00 + 32% 321,450 160,725 204.100 32.748,50 + 32% 408,200 612,350 93,257.00 + 35% 408,200 204,100 306,175 46,628.50 + 35% 612,350 164,709.50 + 37% 612,350 306,175 82.354.75 + 37% of the amount over S 0 9,700 39,475 84,200 160,725 204,100 306,175 Complete Beth's Form 8995. The qualified business income on line 1 must be adjusted for the 50% deduction of the self-employment taxes. OMB No. 1545-0123 Form 8995 Qualified Business Income Deduction Simplified Computation Attach to your tax return. Go to www.lrs.gov/Form8995 for instructions and the latest information. 2019 Department of the Treasury Internal Revenue Service Attachment Sequence No. 55 Name(s) shown on return Beth R. Jordan Your taxpayer identification number 123-45-6785 1 (a) Trade, business, or aggregation name (b) Taxpayer identification number (c) Qualified business income or (loss) i Beth R. Jordan 123-45-6785 Please Help ii iii iv V 2 Total qualified business income or (loss). Combine lines li through 1v, column (c) ... Please Help 2 3 Qualified business net (loss) carryforward from the prior year 0 4 Total qualified business income. Combine lines 2 and 3. If zero or less, enter-O-.... Please Help 4 5 Qualified business income component. Multiply line 4 by 20% (0.20) ..... Please Help 5 6 Qualified REIT dividends and publicly traded partnership (PTP) income or (loss) (see instructions) 0 6 7 Qualified REIT dividends and qualified PTP (loss) carryforward from the prior year.. 0 7 7 8 Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero or less, enter-O- 0 8 9 REIT and PTP component. Multiply line 8 by 20% (0.20) 0 9 10 Qualified business income deduction before the income limitation. Add lines 5 and 9 Please Help 10 11 Taxable income before qualified business income deduction Please Help 11 12 Net capital gain (see instructions) Please Help 12 13 Subtract line 12 from line 11. If zero or less, enter-O- Please Help 13 14 Income limitation. Multiply line 13 by 20% (0.20)..... Please Help 14 15 Qualified business income deduction. Enter the lesser of line 10 or line 14. Also enter this amount on the applicable line of your return. Please Help 15 16 Total qualified business (loss) carryforward. Combine lines 2 and 3. If greater than zero, enter-O-...... 0 16 17 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than zero, enter-O- ........................ 0 17 BAA For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Form 8995 (2019) Complete Form 4562 for Beth for 2019, Note: The threshold cost of Section 179 property before any reduction limitation is $2,550,000 for 2019. The maximum amount for Section 179 is $1,020,000 for 2019. Hint: For line 11, see the instructions. Click to view https://www.irs.gov/pub/irs-pdf/i4562.pdf. OMB No. 1545-0172 Form 4562 Depreciation and Amortization (Including Information on Listed Property) Attach to your tax return. . Go to www.irs.gov/Form4562 for instructions and the latest information. 2019 Department of the Treasury Internal Revenue Service (99) Attachment Sequence No. 179 Name(s) shown on return Beth R. Jordan Identifying number 123-45-6785 Business or activity to which this form relates Schedule C - Beth R. Jordan Part I I Election To Expense Certain Property Under Section 179 Note: you have any listed property, complete Part V before you complete Part I. 1 1 Maximum amount (see instructions) .... Please Help 2 Total cost of section 179 property placed in service (see instructions) 2 Please Help 3 3 Threshold cost of section 179 property before reduction in limitation (see instructions)..... Please Help 4 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter-0-........ 0 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter-O-. If married filing separately, see instructions Please Help 5 6 (a) Description of property (b) Cost (business use only) (c) Elected cost See Statement 1 Please Help 7 Listed property. Enter the amount from line 29 7 0 0 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7. 8 Please Help 9 Tentative deduction. Enter the smaller of line 5 or line 8... 9 Please Help 10 Carryover of disallowed deduction from line 13 of your 2018 Form 4562 . 10 0 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instrs. 11 Please Help 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 ................ 12 Please Help 13 Carryover of disallowed deduction to 2020. Add lines 9 and 10, less line 12.. 13 0 Note: Don't use Part II or Part III below for listed property. Instead, use Part V. Part II Special Depreciation Allowance and Other Depreciation (Don't include listed property. See instructions.) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year. See instructions 14 15 Property subject to section 168(f)(1) election 15 16 Other depreciation (including ACRS) 16 Part III MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2019 17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here .. Section 8 - Assets Placed in Service During 2019 Tax Year Using the General Depreciation System (a) Classification of property (c) Basis for depreciation (1) Month and year (business/investment () Recovery period placed in service use only - see instructions) (e) Convention (1) Method (g) Depreciation deduction 19a 3-year property b 5-year property c7-year property d 10-year property e 15-year property f 20-year property q 25-year property 25 yrs S/L h Residential rental property 27.5 yrs MM S/L 27.5 yrs MM S/L 39 yrs MM S/L i Nonresidential real property MM S/L Section C-Assets Placed in Service During 2019 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year 12 yrs S/L c 30-year 30 yrs MM S/L d 40-year 40 yrs MM S/L Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 21 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and corporations - see instructions ............ Please Help 22 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs....... .... 23 BAA For Paperwork Reduction Act Notice, see separate instructions. Form 4562 (2019) Complete Federal Statements for Beth R. Jordan. 2019 Federal Statements Beth R. Jordan Page 1 123-45-6785 Statement 1 Form 4562, Part I Election To Expense Certain Tangible Property (Section 179) Cost Description of Property Personal Computer .. Elected Cost 7000 7000 Printer 2000 2000 Furniture 3000 3000 Total 12000 Use the 2019 Tax Rate Schedule provided. Do not use the Tax Tables. Qualified Dividends and Capital Gain Tax Worksheet-Line 12a Keep for Your Records Before you begin: See the earlier instructions for line 12a to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1040 through line 11b. If you do not have to file Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 6. 1. Enter the amount from Form 1040 or 1040-SR, line 116. However, if you are filing Form 2555 or 2555-EZ (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax 60167 Worksheet (Taxable income) 2. Enter the amount from Form 1040, line 3a* ... 2200 1. 2 3. 0 3. Are you filing Schedule D?* Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0- O No Enter the amount from Form 1040 or 1040-SR, line 6. 4. Add lines 2 and 3... ........... 5. If filing Form 4952 (used to figure investment interest expense deduction), enter any amount from line 4g of that form. Otherwise, enter -O-. ...................... 6. Subtract line 5 from line 4. If zero or less, enter -- 4. 2200 0 0 5. 6. 2200 7. 57967 7. Subtract line 6 from line 1. If zero or less, enter-o- 8. Enter: $39,375 if single or married filing separately, $78,750 if married filing jointly or qualifying widow(er), $52,750 if head of household. 9. Enter the smaller of line 1 or line 8. .. 8. 39375 9. 39375 10. Enter the smaller of line 7 or line 9... 10. 39375 11. Subtract line 10 from line 9. This amount is taxed at 0% 11. 0 12. 2200 12. Enter the smaller of line 1 or line 6... 13. Enter the amount from line 11.. 13. 0 0 14. Subtract line 13 from line 12 14. 2200 15. Enter: $434,550 if single, $244,425 if married filing separately, .. 15. 434550 $488,850 if married filing jointly or qualifying widowler), $461,700 if head of household. 16. Enter the smaller of line 1 or line 15.. 16. 60187 17. Add lines 7 and 11 ... 17. 57967 18. Subtract line 17 from line 16. If zero or less, enter -0-.. 18. 2200 19. Enter the smaller of line 14 or line 18 19. 2200 20. Multiply line 19 by 15% (0.15) 20. 330 21. Add lines 11 and 19 21. 2200 22. Subtract line 21 from line 12 22. 0 23. 0 Please Help 24. 25. Please Help 23. Multiply line 22 by 20% (0.20) 24. Figure the tax on the amount on line 7. If the amount on line 7 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 7 is $100,000 or more, use the Tax Computation Worksheet 25. Add lines 20, 23, and 24 ..... 26. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet ........... 27. Tax on all taxable income. Enter the smaller of line 25 or 26. Also include this amount on the entry space on Form 1040 or 1040-SR, line 12a. If you are filing Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 12a. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet ............................... * If you are filing Form 2555 or 2555-EZ, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. Please Help 26. Please Help 27. Beth is anticipating significant changes in her life in 2020, and she has asked you to estimate her taxable income and tax liability for 2020. Beth just received word that she has been qualified to adopt a 2-year-old daughter. Beth expects that the adoption will be finalized in 2020 and that she will incur approximately $2,000 of adoption expenses. In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time because of her daughter, she has decided to discontinue her two part- time jobs (i.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments. In your computations, assume that all other 2020 income and expenses will be the same as 2019 amounts. There no personal or dependency exemptions allowed in 2020. Medical deductions are subject to a 7.5% reduction of AGI in 2020. Beth's rate for the child an dependent care credit is 20% and she is entitled to the full child tax credit and adoption credit as well. Click here to access the 2020 Tax Rate Schedules to use for this part of the problem. For 2020, determine the following for Beth: Filing status: Head of Household Please Help Total gross income: $ Please Help Adjusted gross income: $ Please Help The greater of total itemized deductions or standard deduction: $ Please Help Taxable income: $ Please Help Total tax credits: $ Net tax liability (after credits but before any tax withholdings or payments): $ Please Help $ 9.875 of the amount over $ 0 14,100 53,700 85,500 163,300 207,350 518,400 207,350 2020 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable of the If taxable income is: But not amount income is: But not Over- over- The tax is: over- Over- over The tax is: $ 0 ...... 10% $ 0 $ 0 $ 14,100 ........ 10% 9,875 40,125 $ 987.50 + 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 +22% 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 +24% 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 207,350 518,400 47,367.50 + 35% + 207,350 518,400 45,926.00 + 35% 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 +37% + Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable income is: : But not amount income is: But not Over- over- The tax is: over- Over- over- The tax is: $ 0 $ 19,750 .....10% $ 0 $ 0 $ 9,875 .........10% 19,750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 $ 987.50 +12% 80,250 171,050 9,235.00 + 22% 80,250 40,125 85,525 4,617.50 + 22% 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 +24% 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 414.700 622.050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 +37% of the amount over- $ 0 9,875 40,125 85,525 163,300 207,350 311,025 HERE HII