Prepare a 2020 Form 1040, Schedule 1, Schedule 3, Schedule E, Form 8814, and Form 8995 using the information below.

Client Information:

Julia Swanson and her now ex-husband Kevin were legally divorced on March 1, 2018. As of the end of the year, Julia was unmarried. Julia and Kevin had only one child, an 11-year-old girl named Margaret. As part of the divorce decree, Julia was given custody of Margaret, and Kevin was required to pay child support for Margarets care, and alimony to Julia until she remarries or dies. Because Kevin will be making child support payments, the divorce decree provided that Kevin will be permitted to claim the tax dependency exemption for Margaret until Margaret no longer qualifies as a tax dependent of either parent and the decree obligates Julia to sign and/or file any required forms to cause this result to occur.

Julia rents a home for herself and Margaret. Margaret lives with Julia most of the time, but she visits and stays with her father every other weekend and most holidays. During the year, Margaret stayed at Kevins house for a total of 74 nights. Julia paid $250 per month to a licensed child care provider (Child Care Central, 123 West, Palmer, AK 99521, EIN 333-22-9999) for eight months during the school year and $600 per month for four months during school breaks (a total of $4,400 during the calendar year).

Julia provided the following information for 2020:

Julias Social Security number is 333-30-3333

Margarets Social Security number is 123-34-3333

Julias mailing address is 1245 West, Palmer, Alaska 99217

Margaret is a U. S. citizen

She had no virtual currency transactions during the year.

Julia works as a mechanic. The following was reported on Julias Form

W-2: Employer

Gross Wages- $38,350

Federal Income Tax Withholding- $4,950

All applicable and appropriate payroll taxes were withheld by the employer.

During the year, Julia also received the following:

Child Support Payment from Kevin Swanson $18,000

Alimony Payment from Kevin Swanson $14,000

A gift from her father to help with legal bills $ 9,500

Interest income on U.S. Treasury Bond $ 900

Interest income of Madison City Bond (municipal bond) $ 850

Interest income from First Bank of Madison $ 75

Life insurance proceeds on the death of her mother $85,000

Julia and Margaret each received a $992 PFD check during the year. Margaret also had interest income of $456 from a savings bond her grandparents bought for her when she was born. Julia also contributed $400 to United Way during the year.

Julia is a 50% owner in a friends company, Bright Day Flowers, Inc. Bright Day Flowers, Inc. (BDF) is a Subchapter S corporation that makes retail flower sales. The company reported ordinary business income for the year of $30,000. Julia acquired the stock several years ago. Julia worked a total of 600 hours at the BDF shop in the evenings and on the weekends during the tax year. Bright Day Flowers, Inc.s employer identification number is 56-1234555.

Julia entered a contest sponsored by a radio station and won 10 tickets to the touring Broadway-style production of Wholesome. The value of the tickets was $50 each. Julia took her friends from work to the production. Julia did not own, control or manage any foreign bank accounts, nor was she a grantor or beneficiary of a foreign trust during the tax year. Because Julia was not eligible for a retirement plan at work, she contributed $1,000 to a traditional IRA. Julia was provided with the following benefits as part of her employment: Group-term life insurance coverage of $50,000. The cost to cover Julia for the company for the tax year is $150. Access to the company photocopy machine. Julia estimates she made $14 worth of copies during the year primarily for use with her church group activities. Julia reported no itemized deductions other than any described above. She would like to receive a refund of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check. She will not owe any penalties if she owes money and will make a full payment with the tax return.