Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please use the correct 2020 tax documents when answering Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 62701. Her
please use the correct 2020 tax documents when answering
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 Tax her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a P. daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's Es 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 che 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 n 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 55,500. Roberta can document that she spent $8,500 for Jason's support during 2020. n prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2020, he has decided not to do so. Roberta provides all of June's support. Roberta's mother died on January 7, 2020. Roberta inherited assets worth $625,000 rom her mother. As the sole beneficiary of her mother's life insurance policy, Coberta received insurance proceeds of $300,000. Her mother's cost basis for the fe insurance policy was $120,000. Roberta's favorite aunt gave her $13,000 for her irthday in October On November 8, 2020, Roberta sells for $22,000 Amber stock that she had pur- hased for $24,000 from her first cousin, Walt, on December 5, 2015. Walt's cost asis for the stock was $26,000. On December 1, 2020, Roberta sold Falcon stock or $13,500. She had acquired the stock on July 2, 2016, for $8,000. following: 5 An examination of Roberta's records reveals that she respeithe . Interest income of $2,500 from First Savings Bank. . . Qualified dividend income of $1,800 from Amber . . ments during 2020: American Red Cross (proper receipts obtained). . Groceries valued at $750 from Kroger Groceries for being in 200,000th customer Interest income of $3,750 on City of Springfield school bosc 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 W-2 wage limitation does not. From her checkbook records, she determines that she made the following pay Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the Payment of $5,000 to ECM Hospital for the medical expenses of a friend from work. Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. 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. Attorney's 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 Roberta's net tax payable or refund due for 2020. Use the appropriate forms and schedules. Suggested software: ProConnect Tax. Mortgage interest on her residence of $7,800 to Peoples Bank. . $800 for landscaping expenses for residence Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started