Prepare Ernie and Liz's 1040 tax return for 2020. Ignore any education credits. Calculate QBI. You will need form 1040 and schedules 1,2,3,C and SE completed. These forms are available at the IRS website.

Ernie and Liz Banks, ages 47 and 45, are married and live at 584 Harry Carey Drive, Chicago, IL 60601. Ernie's SSN is 111- 11-1111 and Liz's is 222-22-2222. The Banks have two children: Billy, age 23 and Ron, age 19 Their SSNs are 333-33- 3333 and 444-44-4444). Billy is a single full time college student and earned $8,000 during a summer internship. Ernie and Liz help Billy through school by paying his room, board, and tuition and fees. Billy lived at home during the summer. Ron lives at home year around and has a physical handicap. He attends a local university part time, and earned $3,000 during 2020 from a part time job. Ernie and Liz also pay his tuition and fees. Ernie is a commercial pilot for a small airline. His taxable salary for 2020 was $125,000, from which $28,000 of federal income tax and $5,000 of state income tax was withheld. In addition, Ernie had $2,000 withheld from his salary for health insurance premiums, $250 for disability insurance premiums, and $400 for life insurance premiums. Liz owns Addison Networks, a sole proprietorship that does consulting work related to social media marketing. The gross revenues for 2020 totaled $95,000. The business incurred the following expenses: Liability insurance Software rental Journals and magazines Training seminars Supplies Travel Meals and entertainment Charitable contributions $ 700 5,400 150 1,500 1,300 1,100 600 200 Ernie also enjoys playing guitar in a local blues band (as a hobby). Ernie's gross revenues were $1,200 for playing shows and $700 from CD sales. He incurred the following expenses, related to the band, for 2020: Studio rent expense sound system repairs Costs related to production of the CD New guitar and amplifier $ 1,300 300 500 BOO Ernie's father passed away during the year and Ernie received $100,000 from a life insurance policy on his father. His father paid all of the premiums related to the policy. Ernie and Liz spent a weekend in Las Vegas and won $5,000 at the craps table (they received a form 1099 from the casino). They next night they lost $6,000 at the poker table. In addition, they had the following other income and expenses: Contributions to the church Real estate taxes on their home Property taxes on their car (ad valorem) Home mortgage interest Finance charges paid on a credit card Tax return preparation fees (50% related to Liz's business Interest earned on a bank savings account Interest earned on City of Chicago Bonds Federal estimated tax payments during 2020 Standard Deduction - Married filing joint 2020 $ 900 2,000 600 3,000 1,000 1,200 1,000 1,000 10,000 24,800 Prepare Ernie and Liz's 1040 tax return for 2020. Ignore any education credits. You will need form 1040 and schedules 1,2,3, C and SE. These forms are available at the IRS website (IRS.gov). Ernie and Liz Banks, ages 47 and 45, are married and live at 584 Harry Carey Drive, Chicago, IL 60601. Ernie's SSN is 111- 11-1111 and Liz's is 222-22-2222. The Banks have two children: Billy, age 23 and Ron, age 19 Their SSNs are 333-33- 3333 and 444-44-4444). Billy is a single full time college student and earned $8,000 during a summer internship. Ernie and Liz help Billy through school by paying his room, board, and tuition and fees. Billy lived at home during the summer. Ron lives at home year around and has a physical handicap. He attends a local university part time, and earned $3,000 during 2020 from a part time job. Ernie and Liz also pay his tuition and fees. Ernie is a commercial pilot for a small airline. His taxable salary for 2020 was $125,000, from which $28,000 of federal income tax and $5,000 of state income tax was withheld. In addition, Ernie had $2,000 withheld from his salary for health insurance premiums, $250 for disability insurance premiums, and $400 for life insurance premiums. Liz owns Addison Networks, a sole proprietorship that does consulting work related to social media marketing. The gross revenues for 2020 totaled $95,000. The business incurred the following expenses: Liability insurance Software rental Journals and magazines Training seminars Supplies Travel Meals and entertainment Charitable contributions $ 700 5,400 150 1,500 1,300 1,100 600 200 Ernie also enjoys playing guitar in a local blues band (as a hobby). Ernie's gross revenues were $1,200 for playing shows and $700 from CD sales. He incurred the following expenses, related to the band, for 2020: Studio rent expense sound system repairs Costs related to production of the CD New guitar and amplifier $ 1,300 300 500 BOO Ernie's father passed away during the year and Ernie received $100,000 from a life insurance policy on his father. His father paid all of the premiums related to the policy. Ernie and Liz spent a weekend in Las Vegas and won $5,000 at the craps table (they received a form 1099 from the casino). They next night they lost $6,000 at the poker table. In addition, they had the following other income and expenses: Contributions to the church Real estate taxes on their home Property taxes on their car (ad valorem) Home mortgage interest Finance charges paid on a credit card Tax return preparation fees (50% related to Liz's business Interest earned on a bank savings account Interest earned on City of Chicago Bonds Federal estimated tax payments during 2020 Standard Deduction - Married filing joint 2020 $ 900 2,000 600 3,000 1,000 1,200 1,000 1,000 10,000 24,800 Prepare Ernie and Liz's 1040 tax return for 2020. Ignore any education credits. You will need form 1040 and schedules 1,2,3, C and SE. These forms are available at the IRS website (IRS.gov)