Prepare an income tax return (with appropriate schedules) for the Taxpayers for 2019, using the following guidelines and information: The Taxpayers choose to file a joint income tax return The Taxpayers do not wish to contribute to the Presidential Elections Campaign Fund. The Taxpayers do not own any foreign bank accounts or other investments. The Taxpayers have not engaged in any virtual currency transactions The Taxpayers prefer to receive any refund of overpaid taxes. For the past several years, the Taxpayers have itemized their deductions from AGI instead of using the standard deduction. The taxpayers have the necessary substantiation (e.g., records, receipts) to support all transactions reported in their tax return. Make necessary assumptions for information not given in the problem but needed to complete the return. Bill Taxlaw (age 53) and Mary Taxpayer (age 45) are married and live at 426 East Oak, Carbondale, IL 62901. Bill has been promoted to Vice President for Com-Pac a local flexible packaging manufacturer and Mary is a self-employed attorney. They are calendar-year, cash-basis taxpayers. The taxpayers are not tax savvy so they provided you with all the following information. 1. Bill's W-2 is attached. Bill participates in his employer's group health insurance plan to which he contributed $3,600 in 2019 for medical coverage. These contributions were made with after-tax dollars. The health plan covers Bill, Mary, and their two children. Com-Pac does not provide any retirement benefits. On January 15, 2020 Bill contributed $5,500 to his Individual Retirement Account for 2019. The company provides an office for Bill's use that is located at 110 North Round Street, Suite 217, Carbondale, IL 2. Besides the business use of his car (see item 3 below), Bill's out-of-pocket employment related expenses for 2019 are as follows: Airfare $2600 Lodging 3,200 Meals 3,400 Entertainment 800 Car rentals, limos, taxis 600 Parking and tolls 300 Subscriptions to trade journals 120 Dues to trade association 80 Business gifts 550 Bill presented the business gifts in late December to Managers at Compac, with each manager receiving a $50 gift card to a local retailer. Other than the business gifts and use Bill presented the business gifts in late December to Managers at Compac, with each manager receiving a $50 gift card to a local retailer. Other than the business gifts and use of his car, Compac reimbursed Bill for all the other employment related expenses pursuant to its accountable plan. 3. On March 5, 2017, Bill purchased a new Ford Focus for use in his job. The Car cost $34.000 (including sales tax), with no trade-in involved. The car was driven 12,000 miles in 2017 and 18,000 miles in 2018 and 12,000 miles in 2019 with usage as follows: 20% for commuting to the office and 80% for business trips. The mileage for 2019 was evenly distributed throughout the year. Bill uses the actual operating cost method, and for depreciation purposes uses 200% declining-balance with a half-year convention. In addition, Bill does not claim any sec. 179 expensing or additional first- year depreciation when he bought the car. (See Table 3 of the Instructions to Form 4562.) Bill's expenses related to operation the Ford Focus for 2019 are as follows: Gasoline $3,000 Oil change and lubrication 250 Auto insurance 2,000 Repairs 400 Auto club dues 160 License and registration 160 Interest on car loan 500 4. Mary is a licensed attorney who works part time on a consulting basis. Her major clients are marijuana production facilities for whom she prepares contracts. Mary collected $ 98,000 in consulting fees during 2019. Of the fees collected she deposited a pre-payment fee of $5,000 into her lawyer's trust account on December 28th and will draw on those funds as she performs work for the client and issues an invoice. She performed no work for that client in 2019. Mary does her work at the client's premises or in her office at home (see item 5 below). Her business expenses for 2019 are as follows: Mary is a licensed attorney who works part time on a consulting basis. Her major clients are marijuana production facilities for whom she prepares contracts. Mary collected $ 98,000 in consulting fees during 2019. Of the fees collected she deposited a pre-payment fee of $5,000 into her lawyer's trust account on December 28th and will draw on those funds as she performs work for the client and issues an invoice. She performed no work for that client in 2019. Mary does her work at the client's premises or in her office at home (see item 5 below). Her business expenses for 2019 are as follows: Supplies $7,000 Library materials 2,000 Expert fees Professional license fee Subscriptions to professional journals 350 Dues to professional organizations 500 Attorney Subcontractor fees paid (1099s issued) 15,000 1,000 400 26.250 In addition, Mary drove the family Acura (purchase on June 7, 2018) 1.050 miles on her job assignments. She uses the standard mileage method to deduct business costs related to the Acura. During 2019, Mary drove the car a total of 8,200 miles. Mary would like to a contribution to a traditional IRA account in an amount equal to the maximum amount allowed her for a deduction. 5. When the Taxpayers purchased their home on February 2, 2013, they set aside 300 square Feet (out of a total of 2,400 square feet) of living space for Mary's office. As of January 1, 2019, the home has a cost basis of $240,000 (of which $40,000 is attributable to the land) - the fair market value of the property is in excess of this amount. Relevant information concerning the residence for all of 2019 follows: Homeowner's insurance $3,200 Repairs and maintenance 2.000 Utilities 6,800 Home Phone 1,200 5. When the Taxpayers purchased their home on February 2, 2013, they set aside 300 square Feet (out of a total of 2,400 square feet) of living space for Mary's office. As of January 1, 2019, the home has a cost basis of $240,000 (of which $40,000 is attributable to the land) - the fair market value of the property is in excess of this amount. Relevant information concerning the residence for all of 2019 follows: Homeowner's insurance $3,200 Repairs and maintenance 2,000 Utilities 6,800 Home Phone 1,200 Real estate Taxes 6,700 On March 21, 2019, she purchased a computer, printer and scanner for $4,000.00. If possible, Mary prefers to avoid depreciating capital expenditures. 6. On November 2, 2019, Mary sold a tract of land in McCook County to a farmer who owned the adjoining property. The land was inherited from her uncle who died June 6, 1993. Her Uncle paid $15,000 for the property and it was worth $60,000 on June 6, 1993. Under the terms of the sale, Mary received cash of $150,000. 7. Stock and Bond Transactions are reflected on the attached 1099s. Real estate Taxes 6,700 On March 21, 2019, she purchased a computer, printer and scanner for $4,000.00. If possible, Mary prefers to avoid depreciating capital expenditures. 6. On November 2, 2019, Mary sold a tract of land in McCook County to a farmer who owned the adjoining property. The land was inherited from her uncle who died June 6, 1993. Her Uncle paid $15,000 for the property and it was worth $60,000 on June 6, 1993. Under the terms of the sale, Mary received cash of $150,000. 7. Stock and Bond Transactions are reflected on the attached 1099s. 8. Besides the items previously noted, the Taxpayers had the following additional receipts for 2019: Interest income: City of Carbondale bonds General Motors corporate bonds Castle Bank certificate of deposit $1,200 1,400 200 $2,800 Loan repayment received from a friend, Sarah Taxpayer-Caine Cash gifts from Mary's parents State income tax refund (2018 return) 4,500 32,000 1,290 9. In addition to the items already noted, the Taxpayers had the following expenditures for 2019: Mary's contribution to her traditional IRA $3,000 Net gambling loss 2,000 Life insurance premiums 1,800 Medical and dental expenses not covered by insurance 4,200 Taxes: Real estate taxes on personal residence $6,700 Real estate taxes on 40 acres in Missouri 3,000 State and local sales taxes 3,200 Interest on home mortgage 5,800 Cash Contributions: Goodwill (Carbondale branch) 1,200 Illinois governor's election campaign 300 1,500 The $2,000 net gambling loss for 2019 is the difference between the Taxpayers' gambling winnings of $4,000 and losses of $6,000. Included in the medical expenses are $1,200 incurred in 2018, which was paid in early June 2019. The Taxpayers can substantiate the $3,200 in sales taxes paid based on their purchase receipts for the year. 10. The Taxpayers maintain a household that includes their two children, Andrew and Sandy. Andrew is a Junior in high school. Sandy graduated from high school on June 7, 2016, and is still undecided about college. Sandy is an accomplished babysitter and during 2019 earned $10,200. She places most of her earnings in a savings account and kept only a small amount to spend on herself. a 12. 11. The Taxlaw's have made quarterly federal income tax payments of $5,000 and state income estimated payments of $3,000 each quarter. The payments were made on the due dates. Relevant Social Security numbers and dates of birth are as follows: Name Social Security Number DOB Bill S. Taxlaw 111-11-1111 2/1/77 Mary N. Taxlaw 123-45-6787 1/19/76 Sandy J. Taxlaw 123-45-6788 9/5/2001 Andrew W. Taxlaw 123-45-6789 3/15/2003 13. Mary also provides you with a K-1 form for a partnership in which she invested last year. The partnership owns rental real estate but Mary does not participate in the operations. 1 2019 ending B D 2019 Part III Partner's Share of Current Year Income, (Form 1065) Deductions, Credits, and Other Items Department of the Treasury Ordinary business income (06) 15 Credits Intemal Revenue Service For calendar year 2019. or tax year beginning 2 Net rental real estate income (088) Partner's Share of Income, Deductions, -5727 3 Other net rental income foss) Credits, etc. See back of form and separate instructions. 16 Foreign transactions Part 1 Information About the Partnership 4a Guaranteed payments for services A Partnership's employer identification number 72-1009882 4b Guaranteed payments for capital Partnership's name, address, city, state, and ZIP code ABC Real Estate Partnership 4c Total guaranteed payments 147 S Illinois Carbondale, IL 62901 5 Interest income IRS Center where partnership flodreturn Kansas City 75 Check if this is a publicly traded partnership (PTP) Ga Ordinary dividends Part II Information About the Partner 125 E Partner's SSN or TIN (Do not use TIN of a disregarded entity. See inst) 6b Qualified dividends 123-45-6787 100 5. Name, address, city, state, and ZIP code for partner entered in E. See Instructions. 6c Dividend equivalenta 17 Alematve minimun tax (AMT tome Mary Taxlaw 426 East Oak St 7 Royalties Carbondale, IL 62901 General partner or LLC Limited partner or other LLC 8 Not short-term capital gain (0) member-manager member 1 x Domestic partner Foreign partner 9. Not long-term capital gain (losa) 18 Tax-exempt income and nendeductible expenses H2 the partners a disregarded entity (DE), enter the partner's TIN Name Sb Collecties (2896) gain (0) 11 What type of entity is this partner? Individual 12 this partner is a retirement plan (RNSEP Keoghvete.), check here o 9c Unrecaptured section 1250 gain Partner's share of profit, loss, and capital free instruction Beginning Ending 10 Net section 1231 gain loss Profit Distributions Loss 11 Other income foss Capital 50 % Check it decrease in due to sale or exchange of partnership interest Other information Partner's share of abilities: Section 179 deduction Beginning Ending Nonrecours 13 Other deductions J 19 50 % 50 % 50% 50 % 50 % 20 12 20 Other information 12 Section 179 deduction 13 Other deductions Check it decrease is due to talo or exchange of partnership interest K Partner's share of liabilities: Beginning Ending Nonrecourse $ 5 Qualified nonrecourse financing Recourse Check this box item Kincludes lability amounts from lower tier partnerships Partner's Capital Account Analysis 14 Self-employment earnings (108) 46,545 -5527 Beginning capital account Capital contributed during the year Current year net income foss). Other increase reach exploration Withdrawals & distributions Ending capital account $ 3,000) 38,018 21 More than one activity for at-risk purposes 22 More than one activity for passive activity purposes See attached statement for additional information. M Did the partner contribute property with a built-in gain or loss? Yes Notes."attach statement. See instructions. Partner's Share of Not Unrecognized Section 704c) Gain or (Less) Beginning Ending For Paperwork Reduction Act Notice, see Instructions for Form 1085. www.is.gewForm 1085 N For IRS Use Only Cat No. 11394R Schedule K-1 (Form 1065) 2019 Schedule K-1 Form 1065) 2019 Page 2 This list identifies the codos used on Schedule K-1 for all partners and provides summarized reporting Information for partnors who flo Form 1040 or 1040-SR. For detailed reporting and filing Information, see the separate Partner's Instructions for Schedule K-1 and the Instructions for your income tax return. 1. Ordinary business Income foss. Determine whether the income fools Code Raporton passive or nonpassive and enter on your rolum as follows. M Undistributed capital gains credit Schedule 3 Form 1040 ar 1000-SR. Raporton Eine 13, box a Passive loss See the Partner's Instructions I Biofuel producer credit Soo the Partner's Instructions Passive income Schedule E Ine 28, column J Work opportunity credit Nonpassive loss See the Partner's Instructions K Disabled access credit Nonpassive Income Schedule Eino 2, column) L Empowerment zone 2 Net rental real estate income poss! See the Partner's instructions employment credit 2 Other nat rantainenn M Credit for increasing research Santha Partnereine inne 1 Wages, tips, other compensation 2 Federal income tax withheld 210,000.00 47,000.00 3 Social security wages 4 Social security tax withheld 128,400.00 7,961.00 5 Medicare wages and tips 6 Medicare tax withheld 210,000.00 3,045.00 7 Social security tips 8 Allocated tips 9 10 Dependent care benefits 11 Nonqualified plans 12a c nstructions for box 12 D 10,000.00 13 Statutory Retirement Third-party employee plar 12b sick pay C ad 14 Other 12c 12d od Prepare an income tax return (with appropriate schedules) for the Taxpayers for 2019, using the following guidelines and information: The Taxpayers choose to file a joint income tax return The Taxpayers do not wish to contribute to the Presidential Elections Campaign Fund. The Taxpayers do not own any foreign bank accounts or other investments. The Taxpayers have not engaged in any virtual currency transactions The Taxpayers prefer to receive any refund of overpaid taxes. For the past several years, the Taxpayers have itemized their deductions from AGI instead of using the standard deduction. The taxpayers have the necessary substantiation (e.g., records, receipts) to support all transactions reported in their tax return. Make necessary assumptions for information not given in the problem but needed to complete the return. Bill Taxlaw (age 53) and Mary Taxpayer (age 45) are married and live at 426 East Oak, Carbondale, IL 62901. Bill has been promoted to Vice President for Com-Pac a local flexible packaging manufacturer and Mary is a self-employed attorney. They are calendar-year, cash-basis taxpayers. The taxpayers are not tax savvy so they provided you with all the following information. 1. Bill's W-2 is attached. Bill participates in his employer's group health insurance plan to which he contributed $3,600 in 2019 for medical coverage. These contributions were made with after-tax dollars. The health plan covers Bill, Mary, and their two children. Com-Pac does not provide any retirement benefits. On January 15, 2020 Bill contributed $5,500 to his Individual Retirement Account for 2019. The company provides an office for Bill's use that is located at 110 North Round Street, Suite 217, Carbondale, IL 2. Besides the business use of his car (see item 3 below), Bill's out-of-pocket employment related expenses for 2019 are as follows: Airfare $2600 Lodging 3,200 Meals 3,400 Entertainment 800 Car rentals, limos, taxis 600 Parking and tolls 300 Subscriptions to trade journals 120 Dues to trade association 80 Business gifts 550 Bill presented the business gifts in late December to Managers at Compac, with each manager receiving a $50 gift card to a local retailer. Other than the business gifts and use Bill presented the business gifts in late December to Managers at Compac, with each manager receiving a $50 gift card to a local retailer. Other than the business gifts and use of his car, Compac reimbursed Bill for all the other employment related expenses pursuant to its accountable plan. 3. On March 5, 2017, Bill purchased a new Ford Focus for use in his job. The Car cost $34.000 (including sales tax), with no trade-in involved. The car was driven 12,000 miles in 2017 and 18,000 miles in 2018 and 12,000 miles in 2019 with usage as follows: 20% for commuting to the office and 80% for business trips. The mileage for 2019 was evenly distributed throughout the year. Bill uses the actual operating cost method, and for depreciation purposes uses 200% declining-balance with a half-year convention. In addition, Bill does not claim any sec. 179 expensing or additional first- year depreciation when he bought the car. (See Table 3 of the Instructions to Form 4562.) Bill's expenses related to operation the Ford Focus for 2019 are as follows: Gasoline $3,000 Oil change and lubrication 250 Auto insurance 2,000 Repairs 400 Auto club dues 160 License and registration 160 Interest on car loan 500 4. Mary is a licensed attorney who works part time on a consulting basis. Her major clients are marijuana production facilities for whom she prepares contracts. Mary collected $ 98,000 in consulting fees during 2019. Of the fees collected she deposited a pre-payment fee of $5,000 into her lawyer's trust account on December 28th and will draw on those funds as she performs work for the client and issues an invoice. She performed no work for that client in 2019. Mary does her work at the client's premises or in her office at home (see item 5 below). Her business expenses for 2019 are as follows: Mary is a licensed attorney who works part time on a consulting basis. Her major clients are marijuana production facilities for whom she prepares contracts. Mary collected $ 98,000 in consulting fees during 2019. Of the fees collected she deposited a pre-payment fee of $5,000 into her lawyer's trust account on December 28th and will draw on those funds as she performs work for the client and issues an invoice. She performed no work for that client in 2019. Mary does her work at the client's premises or in her office at home (see item 5 below). Her business expenses for 2019 are as follows: Supplies $7,000 Library materials 2,000 Expert fees Professional license fee Subscriptions to professional journals 350 Dues to professional organizations 500 Attorney Subcontractor fees paid (1099s issued) 15,000 1,000 400 26.250 In addition, Mary drove the family Acura (purchase on June 7, 2018) 1.050 miles on her job assignments. She uses the standard mileage method to deduct business costs related to the Acura. During 2019, Mary drove the car a total of 8,200 miles. Mary would like to a contribution to a traditional IRA account in an amount equal to the maximum amount allowed her for a deduction. 5. When the Taxpayers purchased their home on February 2, 2013, they set aside 300 square Feet (out of a total of 2,400 square feet) of living space for Mary's office. As of January 1, 2019, the home has a cost basis of $240,000 (of which $40,000 is attributable to the land) - the fair market value of the property is in excess of this amount. Relevant information concerning the residence for all of 2019 follows: Homeowner's insurance $3,200 Repairs and maintenance 2.000 Utilities 6,800 Home Phone 1,200 5. When the Taxpayers purchased their home on February 2, 2013, they set aside 300 square Feet (out of a total of 2,400 square feet) of living space for Mary's office. As of January 1, 2019, the home has a cost basis of $240,000 (of which $40,000 is attributable to the land) - the fair market value of the property is in excess of this amount. Relevant information concerning the residence for all of 2019 follows: Homeowner's insurance $3,200 Repairs and maintenance 2,000 Utilities 6,800 Home Phone 1,200 Real estate Taxes 6,700 On March 21, 2019, she purchased a computer, printer and scanner for $4,000.00. If possible, Mary prefers to avoid depreciating capital expenditures. 6. On November 2, 2019, Mary sold a tract of land in McCook County to a farmer who owned the adjoining property. The land was inherited from her uncle who died June 6, 1993. Her Uncle paid $15,000 for the property and it was worth $60,000 on June 6, 1993. Under the terms of the sale, Mary received cash of $150,000. 7. Stock and Bond Transactions are reflected on the attached 1099s. Real estate Taxes 6,700 On March 21, 2019, she purchased a computer, printer and scanner for $4,000.00. If possible, Mary prefers to avoid depreciating capital expenditures. 6. On November 2, 2019, Mary sold a tract of land in McCook County to a farmer who owned the adjoining property. The land was inherited from her uncle who died June 6, 1993. Her Uncle paid $15,000 for the property and it was worth $60,000 on June 6, 1993. Under the terms of the sale, Mary received cash of $150,000. 7. Stock and Bond Transactions are reflected on the attached 1099s. 8. Besides the items previously noted, the Taxpayers had the following additional receipts for 2019: Interest income: City of Carbondale bonds General Motors corporate bonds Castle Bank certificate of deposit $1,200 1,400 200 $2,800 Loan repayment received from a friend, Sarah Taxpayer-Caine Cash gifts from Mary's parents State income tax refund (2018 return) 4,500 32,000 1,290 9. In addition to the items already noted, the Taxpayers had the following expenditures for 2019: Mary's contribution to her traditional IRA $3,000 Net gambling loss 2,000 Life insurance premiums 1,800 Medical and dental expenses not covered by insurance 4,200 Taxes: Real estate taxes on personal residence $6,700 Real estate taxes on 40 acres in Missouri 3,000 State and local sales taxes 3,200 Interest on home mortgage 5,800 Cash Contributions: Goodwill (Carbondale branch) 1,200 Illinois governor's election campaign 300 1,500 The $2,000 net gambling loss for 2019 is the difference between the Taxpayers' gambling winnings of $4,000 and losses of $6,000. Included in the medical expenses are $1,200 incurred in 2018, which was paid in early June 2019. The Taxpayers can substantiate the $3,200 in sales taxes paid based on their purchase receipts for the year. 10. The Taxpayers maintain a household that includes their two children, Andrew and Sandy. Andrew is a Junior in high school. Sandy graduated from high school on June 7, 2016, and is still undecided about college. Sandy is an accomplished babysitter and during 2019 earned $10,200. She places most of her earnings in a savings account and kept only a small amount to spend on herself. a 12. 11. The Taxlaw's have made quarterly federal income tax payments of $5,000 and state income estimated payments of $3,000 each quarter. The payments were made on the due dates. Relevant Social Security numbers and dates of birth are as follows: Name Social Security Number DOB Bill S. Taxlaw 111-11-1111 2/1/77 Mary N. Taxlaw 123-45-6787 1/19/76 Sandy J. Taxlaw 123-45-6788 9/5/2001 Andrew W. Taxlaw 123-45-6789 3/15/2003 13. Mary also provides you with a K-1 form for a partnership in which she invested last year. The partnership owns rental real estate but Mary does not participate in the operations. 1 2019 ending B D 2019 Part III Partner's Share of Current Year Income, (Form 1065) Deductions, Credits, and Other Items Department of the Treasury Ordinary business income (06) 15 Credits Intemal Revenue Service For calendar year 2019. or tax year beginning 2 Net rental real estate income (088) Partner's Share of Income, Deductions, -5727 3 Other net rental income foss) Credits, etc. See back of form and separate instructions. 16 Foreign transactions Part 1 Information About the Partnership 4a Guaranteed payments for services A Partnership's employer identification number 72-1009882 4b Guaranteed payments for capital Partnership's name, address, city, state, and ZIP code ABC Real Estate Partnership 4c Total guaranteed payments 147 S Illinois Carbondale, IL 62901 5 Interest income IRS Center where partnership flodreturn Kansas City 75 Check if this is a publicly traded partnership (PTP) Ga Ordinary dividends Part II Information About the Partner 125 E Partner's SSN or TIN (Do not use TIN of a disregarded entity. See inst) 6b Qualified dividends 123-45-6787 100 5. Name, address, city, state, and ZIP code for partner entered in E. See Instructions. 6c Dividend equivalenta 17 Alematve minimun tax (AMT tome Mary Taxlaw 426 East Oak St 7 Royalties Carbondale, IL 62901 General partner or LLC Limited partner or other LLC 8 Not short-term capital gain (0) member-manager member 1 x Domestic partner Foreign partner 9. Not long-term capital gain (losa) 18 Tax-exempt income and nendeductible expenses H2 the partners a disregarded entity (DE), enter the partner's TIN Name Sb Collecties (2896) gain (0) 11 What type of entity is this partner? Individual 12 this partner is a retirement plan (RNSEP Keoghvete.), check here o 9c Unrecaptured section 1250 gain Partner's share of profit, loss, and capital free instruction Beginning Ending 10 Net section 1231 gain loss Profit Distributions Loss 11 Other income foss Capital 50 % Check it decrease in due to sale or exchange of partnership interest Other information Partner's share of abilities: Section 179 deduction Beginning Ending Nonrecours 13 Other deductions J 19 50 % 50 % 50% 50 % 50 % 20 12 20 Other information 12 Section 179 deduction 13 Other deductions Check it decrease is due to talo or exchange of partnership interest K Partner's share of liabilities: Beginning Ending Nonrecourse $ 5 Qualified nonrecourse financing Recourse Check this box item Kincludes lability amounts from lower tier partnerships Partner's Capital Account Analysis 14 Self-employment earnings (108) 46,545 -5527 Beginning capital account Capital contributed during the year Current year net income foss). Other increase reach exploration Withdrawals & distributions Ending capital account $ 3,000) 38,018 21 More than one activity for at-risk purposes 22 More than one activity for passive activity purposes See attached statement for additional information. M Did the partner contribute property with a built-in gain or loss? Yes Notes."attach statement. See instructions. Partner's Share of Not Unrecognized Section 704c) Gain or (Less) Beginning Ending For Paperwork Reduction Act Notice, see Instructions for Form 1085. www.is.gewForm 1085 N For IRS Use Only Cat No. 11394R Schedule K-1 (Form 1065) 2019 Schedule K-1 Form 1065) 2019 Page 2 This list identifies the codos used on Schedule K-1 for all partners and provides summarized reporting Information for partnors who flo Form 1040 or 1040-SR. For detailed reporting and filing Information, see the separate Partner's Instructions for Schedule K-1 and the Instructions for your income tax return. 1. Ordinary business Income foss. Determine whether the income fools Code Raporton passive or nonpassive and enter on your rolum as follows. M Undistributed capital gains credit Schedule 3 Form 1040 ar 1000-SR. Raporton Eine 13, box a Passive loss See the Partner's Instructions I Biofuel producer credit Soo the Partner's Instructions Passive income Schedule E Ine 28, column J Work opportunity credit Nonpassive loss See the Partner's Instructions K Disabled access credit Nonpassive Income Schedule Eino 2, column) L Empowerment zone 2 Net rental real estate income poss! See the Partner's instructions employment credit 2 Other nat rantainenn M Credit for increasing research Santha Partnereine inne 1 Wages, tips, other compensation 2 Federal income tax withheld 210,000.00 47,000.00 3 Social security wages 4 Social security tax withheld 128,400.00 7,961.00 5 Medicare wages and tips 6 Medicare tax withheld 210,000.00 3,045.00 7 Social security tips 8 Allocated tips 9 10 Dependent care benefits 11 Nonqualified plans 12a c nstructions for box 12 D 10,000.00 13 Statutory Retirement Third-party employee plar 12b sick pay C ad 14 Other 12c 12d od