Problem 2-20 (Algorithmic)
Interest and Dividend Income (LO 2.9)
Sally and Charles Heck received the following Form 1099-DIV in 2019:
The Heck also received the following dividends and interest in 2019
Assuming the Hecks file a joint tax return, complete Schedule B of Form 1040 for them for the 2019 tax year.
Fill for numbers 1, 2, 4, 5, 6 empty boxes. If an amount box does not require en entry, enter "0"
la Total ordinary dividends OMB No. 1545-0110 PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Dividends $1,055.00 2019 and 1b Qualified dividends Wilson Corporation 33133 Hilltop Drive Alpine, CA 91901 Distributions $ 740.00 Form 1099-DIV 2a Total capital gain distr. 2b Unrecap. Sec. 1250 gain $ $ PAYER'S TIN 2c Section 1202 gain 2d Collectibles (28%) gain RECIPIENT'S TIN 313-13-1313 27-1234567 $ $ Copy B RECIPIENT'S name 4 Federal income tax withheld 3 Nondividend distributions Sally Heck $ For Recipient $ 0.00 5 Section 199A dividends 6 Investment expenses Street address (including apt. no.) $ $ $ 7 Foreign tax paid 1420 Pasadena Blvd. 8 Foreign country or U.S possession This is important tax information and is being furnished to the IRS. If . you are required to file a return, a negligence City or town, state or province, country, and ZIP or foreign postal code City or town, state or province, country, and ZIP or foreign postal code 10 Noncash liquidation 9 Cash liquidation distributions distributions Carrollton, TX 75007 return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. FATCA filing requirement 11 Exempt-interest dividends 12 Specified private activity bond interest dividends Account number (see instructions) 13 14 State 15 State tax withheld State identification no. Sally Charles Jointly Qualifying dividends: General Motors $870 IBM $2,240 Gene Corporation $2,925 Interest: Dime Box Bank 11 First National Bank 940 OMB No. 1545-0074 SCHEDULE B (Form 1040 or 1040- SR) Interest and Ordinary Dividends 2019 Department of the Treasury Internal Revenue Service (99) Go to www.irs.gov/Schedule for instructions and the latest information. Attach to Form 1040 or 1040-SR. Attachment Sequence No. 08 Name(s) shown on return Charles and Sally Heck Your social security number 313-13-1313 1 Amount List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer's social security number and address Part I Interest (See instructions and the instructions for Forms 1040 and 1040-SR, line 2b.) 1 Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total 2 Add the amounts on line 1. 2 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815....... 3 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b interest shown on that form. Note: If line 4 is over $1,500, you must complete Part III. Amount Part II 5 List name of payer IIIII ILLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL LUUIIIIIIIIIIIIIII Ordinary Dividends (See instructions and the instructions 5 IIIIIIII for Forms 1040 and 1040-SR, line 3b.) IIIIII IIIIIII IIIIII IIIIIIIIIIIIIIIII IIIIIIII LLLLLLL 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line Note: If you 6 3b... received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the Note: If line 6 is over $1,500, you must complete Part III. ordinary dividends shown on that form. You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No 7a At any time during 2019, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? Part III Foreign Accounts See instructions and Trusts If "Yes," are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements . Caution: If required, failureto file Fin CEN Form 114 may result in substantial b penalties. See If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located instructions. 8 During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes," you may have to file Form 3520. See instructions For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040 or 1040-SR) 2019 la Total ordinary dividends OMB No. 1545-0110 PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Dividends $1,055.00 2019 and 1b Qualified dividends Wilson Corporation 33133 Hilltop Drive Alpine, CA 91901 Distributions $ 740.00 Form 1099-DIV 2a Total capital gain distr. 2b Unrecap. Sec. 1250 gain $ $ PAYER'S TIN 2c Section 1202 gain 2d Collectibles (28%) gain RECIPIENT'S TIN 313-13-1313 27-1234567 $ $ Copy B RECIPIENT'S name 4 Federal income tax withheld 3 Nondividend distributions Sally Heck $ For Recipient $ 0.00 5 Section 199A dividends 6 Investment expenses Street address (including apt. no.) $ $ $ 7 Foreign tax paid 1420 Pasadena Blvd. 8 Foreign country or U.S possession This is important tax information and is being furnished to the IRS. If . you are required to file a return, a negligence City or town, state or province, country, and ZIP or foreign postal code City or town, state or province, country, and ZIP or foreign postal code 10 Noncash liquidation 9 Cash liquidation distributions distributions Carrollton, TX 75007 return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. FATCA filing requirement 11 Exempt-interest dividends 12 Specified private activity bond interest dividends Account number (see instructions) 13 14 State 15 State tax withheld State identification no. Sally Charles Jointly Qualifying dividends: General Motors $870 IBM $2,240 Gene Corporation $2,925 Interest: Dime Box Bank 11 First National Bank 940 OMB No. 1545-0074 SCHEDULE B (Form 1040 or 1040- SR) Interest and Ordinary Dividends 2019 Department of the Treasury Internal Revenue Service (99) Go to www.irs.gov/Schedule for instructions and the latest information. Attach to Form 1040 or 1040-SR. Attachment Sequence No. 08 Name(s) shown on return Charles and Sally Heck Your social security number 313-13-1313 1 Amount List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer's social security number and address Part I Interest (See instructions and the instructions for Forms 1040 and 1040-SR, line 2b.) 1 Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total 2 Add the amounts on line 1. 2 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815....... 3 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b interest shown on that form. Note: If line 4 is over $1,500, you must complete Part III. Amount Part II 5 List name of payer IIIII ILLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLLL LUUIIIIIIIIIIIIIII Ordinary Dividends (See instructions and the instructions 5 IIIIIIII for Forms 1040 and 1040-SR, line 3b.) IIIIII IIIIIII IIIIII IIIIIIIIIIIIIIIII IIIIIIII LLLLLLL 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line Note: If you 6 3b... received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the Note: If line 6 is over $1,500, you must complete Part III. ordinary dividends shown on that form. You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No 7a At any time during 2019, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? Part III Foreign Accounts See instructions and Trusts If "Yes," are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements . Caution: If required, failureto file Fin CEN Form 114 may result in substantial b penalties. See If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located instructions. 8 During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes," you may have to file Form 3520. See instructions For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 17146N Schedule B (Form 1040 or 1040-SR) 2019
