Please use the information above to fill out Schedule 1 and 2 below. Thank you.
DONALD AND MARIA DUCKWORTH SS# 222-33-4444 123 Spring Alley Donald DOB: 7/4/1973 Houston, TX 77002 SS# 333-44-5555 Maria DOB: 7/4/1974 Filing Status: MFJ Maria: Pilot Yes: Presidential Election Fund Donald: Petroleum Engineer Yes: Presidential Election Fund Dependents: Son Barry SS# 111-22-7777 Birth date: 01/01/2004 Age: 16 The Duckworth's would like any tax due drafted from the Chase bank account, or any overpayment refunded in full direct deposit to: Chase Bank checking account: Routing# 111000614 Acc# 111222333 The Duckworth's do not own, nor did they trade in virtual currency during 2020. Estimated Taxes Payments Mrs. Duckworth received a W-2 04/15/2020 $11,000 Employer EIN 11-1234567 06/15/2020 $11,000 Agency Air (Covered by pension plan) 09/15/2020 $11,000 $197,000 Wages 01/15/2021 $11,000 $ 8,537 Social Security Withheld (Based on $137,700) $ 2,857 Medicare Withheld $ 23,000 Federal Income Tax Withheld Deductions for AGI (Schedule 1) You will have to calculate Donald's Schedule C before you can calculate some of the deductions for AGI. Donald: Self-Employed - Family health coverage $1,800/month x 12 months = $21,600. Deduction for AGI Use Schedule SE to calculate y of your self-employment tax AFTER you calculate Schedule C Net Income from self-employment. You will have to take this for AGI deduction into consideration when calculating the Form 8995-A Donald pays alimony to his former wife (Wilma SS# 222-44-8888) $24,000 per year. They were divorced in 12/1/2003 Donald wishes to contribute the maximum amount permitted to a SEP IRA (Consult Chapter 13 for the calculation) The amount is based on Sch C net income from business. Deduction Items (from AGI) - Schedule A Out-of-pocket medical and dental expenses $ 22,300 Mortgage Interest Paid (Personal residence) $ 62,000 (Original Mortgage indebtedness = $500,000) General Sales Tax (Actual Paid) $ 2,700 Real Estate Taxes Paid (Personal residence) $ 12,000 Charitable Contributions: Various Qualifying $ 10,500 Interest & Dividend Income - Schedule B 1099-INT Interest earned on Chase Bank Savings $ 5,100 1099-DIV Dividends earned on Fidelity Investments $ 23,000 (Total Ordinary; $0 Qualified) No Foreign Interest was earned and no signatory authority over foreign accounts Self-Employment Income Petroleum Engineer Activity - Schedule C & SE Activity: Engineer Code: 541330 Business Started 1/1/2020 This schedule C activity is a Qualified Trade or Business under Section 199A (which means it is eligible for Form 8995-A QBID) 1099s: Tax payer did NOT make any payments which would require 1099s. Cash basis taxpayer who materially participates. The sole proprietorship's EIN 12-3456789 Donald uses his name and home address as his business name. Donald does NOT elect expenses for business use of his home. Part I - Income - Line 1 - $ 855,000 Part II - Expenses: Office / Warehouse rent $ 240,000 Liability Insurance $ 31,000 Office expenses $ 189,000 Business entertainment 100% $ 275,000 Form 4562 - Depreciation Description: GEOLOGICAL COMPUTER EQUIPMENT Date: 02-01-2020 Cost: $ 78,000 Method: Federal: MACRS HY (Convention) 200 DB (Method) Life: 5 Years Section 179 elected this year: $0 Did not Elect Bonus Depreciation Description: OFFICE FURNITURE Date 01-01-2020 Cost: $ 107,000 Method: Federal: MACRS Life: 5 Years Elect all allowable Sec 179 depreciation Did not Elect Bonus Deprecation SCHEDULE 1 OMB No. 1545-0074 (Form 1040) Additional Income and Adjustments to Income 2020 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 1 2a 3 Part 1 Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes. 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 .. 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 5 6 Farm income or loss). Attach Schedule F 6 7 Unemployment compensation. 7 8 Other income. List type and amount . 4 NO 8 10 11 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8. Part 11 Adjustments to Income 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans. 16 Self-employed health insurance deduction 17 Penalty on early withdrawal of savings 18a Alimony paid.. b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction 20 Student loan interest deduction 21 Tuition and fees deduction. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10a For Paperwork Reduction Act Notice, see your tax return instructions. 12 13 14 15 16 17 18a 19 20 21 22 Cat, No. 71479F Schedule 1 Form 1040) 2020 SCHEDULE 2 OMB No. 1545-0074 (Form 1040) Additional Taxes 2020 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 02 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 1 2 3 3 4 4 5 Part I Tax 1 Alternative minimum tax. Attach Form 6251 2 Excess advance premium tax credit repayment. Attach Form 8962. 3 Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17. . Part II Other Taxes 4 Self-employment tax. Attach Schedule SE... 5 Unreported social security and Medicare tax from Form: a 4137 b8919. 6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required ... 7a Household employment taxes. Attach Schedule H b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 8 Taxes from: a Form 8959bForm 8960 c Instructions; enter code(s) 9 Section 965 net tax liability installment from Form 965-A . 9 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 23, or Form 1040-NR, line 23b For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71478U 6 7a 7b 8 10 Schedule 2 (Form 1040) 2020 DONALD AND MARIA DUCKWORTH SS# 222-33-4444 123 Spring Alley Donald DOB: 7/4/1973 Houston, TX 77002 SS# 333-44-5555 Maria DOB: 7/4/1974 Filing Status: MFJ Maria: Pilot Yes: Presidential Election Fund Donald: Petroleum Engineer Yes: Presidential Election Fund Dependents: Son Barry SS# 111-22-7777 Birth date: 01/01/2004 Age: 16 The Duckworth's would like any tax due drafted from the Chase bank account, or any overpayment refunded in full direct deposit to: Chase Bank checking account: Routing# 111000614 Acc# 111222333 The Duckworth's do not own, nor did they trade in virtual currency during 2020. Estimated Taxes Payments Mrs. Duckworth received a W-2 04/15/2020 $11,000 Employer EIN 11-1234567 06/15/2020 $11,000 Agency Air (Covered by pension plan) 09/15/2020 $11,000 $197,000 Wages 01/15/2021 $11,000 $ 8,537 Social Security Withheld (Based on $137,700) $ 2,857 Medicare Withheld $ 23,000 Federal Income Tax Withheld Deductions for AGI (Schedule 1) You will have to calculate Donald's Schedule C before you can calculate some of the deductions for AGI. Donald: Self-Employed - Family health coverage $1,800/month x 12 months = $21,600. Deduction for AGI Use Schedule SE to calculate y of your self-employment tax AFTER you calculate Schedule C Net Income from self-employment. You will have to take this for AGI deduction into consideration when calculating the Form 8995-A Donald pays alimony to his former wife (Wilma SS# 222-44-8888) $24,000 per year. They were divorced in 12/1/2003 Donald wishes to contribute the maximum amount permitted to a SEP IRA (Consult Chapter 13 for the calculation) The amount is based on Sch C net income from business. Deduction Items (from AGI) - Schedule A Out-of-pocket medical and dental expenses $ 22,300 Mortgage Interest Paid (Personal residence) $ 62,000 (Original Mortgage indebtedness = $500,000) General Sales Tax (Actual Paid) $ 2,700 Real Estate Taxes Paid (Personal residence) $ 12,000 Charitable Contributions: Various Qualifying $ 10,500 Interest & Dividend Income - Schedule B 1099-INT Interest earned on Chase Bank Savings $ 5,100 1099-DIV Dividends earned on Fidelity Investments $ 23,000 (Total Ordinary; $0 Qualified) No Foreign Interest was earned and no signatory authority over foreign accounts Self-Employment Income Petroleum Engineer Activity - Schedule C & SE Activity: Engineer Code: 541330 Business Started 1/1/2020 This schedule C activity is a Qualified Trade or Business under Section 199A (which means it is eligible for Form 8995-A QBID) 1099s: Tax payer did NOT make any payments which would require 1099s. Cash basis taxpayer who materially participates. The sole proprietorship's EIN 12-3456789 Donald uses his name and home address as his business name. Donald does NOT elect expenses for business use of his home. Part I - Income - Line 1 - $ 855,000 Part II - Expenses: Office / Warehouse rent $ 240,000 Liability Insurance $ 31,000 Office expenses $ 189,000 Business entertainment 100% $ 275,000 Form 4562 - Depreciation Description: GEOLOGICAL COMPUTER EQUIPMENT Date: 02-01-2020 Cost: $ 78,000 Method: Federal: MACRS HY (Convention) 200 DB (Method) Life: 5 Years Section 179 elected this year: $0 Did not Elect Bonus Depreciation Description: OFFICE FURNITURE Date 01-01-2020 Cost: $ 107,000 Method: Federal: MACRS Life: 5 Years Elect all allowable Sec 179 depreciation Did not Elect Bonus Deprecation SCHEDULE 1 OMB No. 1545-0074 (Form 1040) Additional Income and Adjustments to Income 2020 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 1 2a 3 Part 1 Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes. 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 .. 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 5 6 Farm income or loss). Attach Schedule F 6 7 Unemployment compensation. 7 8 Other income. List type and amount . 4 NO 8 10 11 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8. Part 11 Adjustments to Income 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans. 16 Self-employed health insurance deduction 17 Penalty on early withdrawal of savings 18a Alimony paid.. b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 IRA deduction 20 Student loan interest deduction 21 Tuition and fees deduction. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10a For Paperwork Reduction Act Notice, see your tax return instructions. 12 13 14 15 16 17 18a 19 20 21 22 Cat, No. 71479F Schedule 1 Form 1040) 2020 SCHEDULE 2 OMB No. 1545-0074 (Form 1040) Additional Taxes 2020 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 02 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 1 2 3 3 4 4 5 Part I Tax 1 Alternative minimum tax. Attach Form 6251 2 Excess advance premium tax credit repayment. Attach Form 8962. 3 Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17. . Part II Other Taxes 4 Self-employment tax. Attach Schedule SE... 5 Unreported social security and Medicare tax from Form: a 4137 b8919. 6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required ... 7a Household employment taxes. Attach Schedule H b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 8 Taxes from: a Form 8959bForm 8960 c Instructions; enter code(s) 9 Section 965 net tax liability installment from Form 965-A . 9 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 23, or Form 1040-NR, line 23b For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71478U 6 7a 7b 8 10 Schedule 2 (Form 1040) 2020
