QUESTION:

Prepare a Form 1040 and Schedule 1 (DOCUMENTS POSTED BELOW) for Rick and Cindy Davis.

INFORMATION TO ANSWER QUESTION:

Rick and Cindy Davis are married and file a joint return. They live at 3223 Taccone Ave., Apt. 37, Medford, MA 02155. Rick is an elementary school teacher in the Medford Public School system and Cindy is currently a homemaker after losing her job in late 2019. Cindys social security number is 412-34-5671 (date of birth 10/11/1981) and Ricks is 412-34-5670 (date of birth 3/19/1979).

Ricks W-2 contained the following information:

Wages (box 1)	$ 70,245.55
Federal W/H (box 2)	$ 5,924.43
Social security wages (box 3)	$ 70,245.55
Social security W/H (box 4)	$ 4,355.22
Medicare wages (box 5)	$ 70,245.55
Medicare W/H (box 6)	$ 1,018.56

Rick and Cindy have an interest income of $237 from a savings account at Boston State Bank.

Cindy received $265 in qualified dividends from Microsoft in 2020. Rick was divorced in 2014 and pays his ex-wife (Mary Tortelli) alimony. Their original divorce decree, which remains unchanged, dictates that Rick pay Mary $525 per month in alimony for 10 years. Marys social security number is 412-34-5675.

Cindy received unemployment compensation of $3,800 during 2020 and no taxes were withheld from the payments. Additionally, Rick won a $1,100 prize in a nationally sponsored fantasy football league and no income taxes were withheld from his winnings. Rick also spent $355 on supplies for his classroom for which he was not reimbursed.

DOCUMENTS TO ANSWER QUESTION:

Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 Department of the TreasuryIntemal Revenue Service (99) 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space U.2. Individual Income Tax Return Filling Status single Married fling jointly Married filing separately (MES) Head at household (HOH Qualitying widower) (ow) Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or OW box, enter the chids name the qualifying person is one box a chid but not your dependent. Your first name and middle initial Last name Your coolal courity number Enter as XIX-XX-XXXX) Rick Davis 412-34-5670 pouca's coolal Gourity number If joint return, spouse's first name and middle initial Last name Enter ac XXX-XX-XXXX) Cindy Davis 412-34-5671 Home address (number and street). If you have a P.O.box, see instructions. Apt. no. Precidential Election Campaign 3223 Taccone Ave. Check here you, or your spouse if filing jointly, want $3 to go to this und City, town, or post office. If you have a foreign address, also complete spaces below. Checking a box below will not change Medford, MA 02155 Your tax or refund Foreign country name Foreign province state county Foreign postal code You &pouco Yes At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? No Standard Bombong dan laim: You as a dependent Your spouse as a dependent Deduction Spouse temizes on a separate return or you were a dual-status alien Age/Blindness You Were born before January 2, 1956 Are bind &pouce: Was born before January 2, 1956 Is bing Dependents Isee instructions: (2) Social Security number 18) Relationship to you 14) / if qualities for en instructions: Credit for other If more than four (1) First name Last name (Enter AS XXXXX Child tax credt dependents dependents, see instructions and check here 1 Wages, salaries, tips, etc. Attach Formis) W-2 2a Tex-exempt interest 3a Qualified dividends Attach Sch. Bit required 2b 3b 4a RA distributions 49 bTaxables Ordinary dividends Taxable amount Taxable amount Taxable amount 4b 5a Pensions and annuities 5b ea eb Ba Social security benefits 7 Capital gain or loss. Attach Schedule Dif required. If not required, check here 8 Other income from Schedule 1. line 9 7 8 Add lines 1, 2, 3, 4, 5, 6, 7, and 8. This is your total income 10 Adjustments to income: Btandard Deduction for a From Schedule 1, line 22 103 - Single or Married fling separately b Charitable contributions if you take the standard deduction. See instructions 10b $12.400 Married filling 0 Add lines 10a and 10b. These are your total adjustments to Income 100 jointly or Qualifying 11 widowiar). 524,800 11 Subtract line 10c from ine 9. This is your adjusted grocs Income - Head of 12 12 Standard deduction or itemized deduotions from Schedule A) household, 518,650 you checked any 13 Qualified business income deduction. Attach Form 1995 or Form 1996-A 18 bax under Standard Deduction, 14 Add lines 12 and 13 14 instructions 16 Taxable income. Subtract line 14 from line 11. If zero or less enter-O- 16 For Dicolocure, Privacy Act, and Paperwork Reduction Act Notice, ca ceparate Instruction Cat No. 113200 THIS FORM IS A BIMULATION OF AN OFFICIAL U. 2. TAX FORM. IT IB NOT THE OFFICIAL FORM IT BELF. DO NOT USE THIS FORM FOR TAX FILING 3 OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 MoGraw-Hill Eduoation 0 Fom 1040 (2020) Page 2 (3) 1e 17 18 0 10 20 Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2020) Rick Davis Cindy Davis 412-34-5670 18 Tax see instructions). Check it any from Formis (1) 8814 12) 4972 17 Amount from Schedule 2, line 3 13 Add lines 16 and 17 19 Child tax creditor credit for other dependients 20 Amount from Schedule 3, line 7 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or loss, enter- 23 Other taxes, including self-employment tax, from Schedule 2, line 10 24 Add lines 22 and 22. This is your total tax 25 Federal income tax withheld from: a Fomis) W-2 b Formis) 1099 o Other forms (sco instructions) 0 24 0 26a 26b 260 260 27 28 28 30 31 0 0 34 d Addines 25 through 2016 you have a 29 2020 estimated tax payments and amount applied from 2019 return quallying child, 27 Eamed income credit (EIC) attach Sch. Eic. you have 28 Additional child tax credit. Attach Schedule 8812 nontaxablo combat pays 20 American opportunity credit from Farm 8863, line 8 instructions 30 Recovery rebate credt. See Instructions 31 Amount from Schedule 3, line 13 32 Add lines 27 through 31. These are your total other payments and refundable credito 33 Add lines 250, 26, and 32. These are your total payments 34 it line 33 is more than ine 24, subtract line 24 from ine 33. This is the amount you overpald Refund 358 Amount of line 34 you want refunded to you. If Farm 8888 attached, check here Routing number Type: Direct depost? Checking See instructions. d Account number 38 Amount of line 34 you want applied to your 2021 actimated tax Amount You 37 Subtract line 33 from line 24. This is the amount you owe now Owe Note: Schedule Hand Schedule Se fiers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12 For details on how to and its instructions for details pay, so instructions 33 Estimated tax penalty see instructions) Third Party Do you want to allow another person to discuss this return with the IRS? See instructions Designee 350 Savings 86 38 Yes. Complete below No Phone Designce's name Personal identication number (PIN) Sign Here Joint ratum? See instructions Koop A copy for your records Under penalties of perjury, I declare that I have examined this meturn and accompanying schedules and statements, and to the best of my knowledge and beliet, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. if the RS sont you an Identity Your signature Date Your occupation Protection PIN ter it hare (see inst.) If the RS sert your spouse an Spouse's signature. If a joint retum, both must sign Date Spouse's occupation Identity Protection PIN, enter there see inst.) Phone na Email address Preparer's name Preparer's signature Date PTIN Checki Self-employed Paid Preparer Use Only Firm's name Phone no Firm's address Firm's EIN Form 1040 20201 THIS FORM 18 A SIMULATION OF AN OFFICIAL U. 8. TAX FORM. IT IS NOT THE OFFICIAL FORM IT BELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 MoGraw-Hill Eduoation. Schedule 1 of Form 1040. OMB No. 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2020 Attachment Sequence No. 01 Your coolal ceourity number 412-34-5870 1 2a Department of the Treasury Attach to Form 1040, 1040-3R, or 1040-NR. Intemal Revenue Service Go to www.lrs.gov/Form1040 for Inctruction and the latest Information Name(s) shown on Form 1040 or 1040-SR Rick Davis Parti Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Almony received b Date of original divorce or separation agreement ses instructions) 3 Business income or loss). Attach Schedule Other gains ar (s). Arch Form 4797 6 Rental real estate, royalties, partnerships, corporations, trusts, etc. Attach Schedule E B Farm income ar (s). Attach Schedule 7 Unemployment compensation 8 Other income. List type and amount S 4 4 6 B 7 8 8 0 Part II 10 10 11 11 12 12 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Adjustments to Income Educator expenses Certain business expenses of reservists, performing artists, and foo-basis government officials. Attach Form 2106 Health Savings account deduction Altach Form 1889 Moving expenses for members of the Armed Forces Attach Form 3903 Deductible part of self-employment tax. Attach Schedule SE Sait-employed SEP SIMPLE and qualified plans Self-employed health insurance coduction Penalty on early withdrawal of savings 13 18 14 16 16 18 18 17 17 18a Alimony paid 18a b 0 Recipient's SSN Enter As XXX--XXXX) Date of original divorce or separation agreement ses instructions) IRA deduction 19 18 20 Student loan interest deduction 20 0 Tuition and foes deduction. Attach Form 8917 21 22 Add Ines 10 through 21. These are your adjustments to Income. Enter here and on Form 1040 1040-SR, or 1040-NR, line 102 22 For Paperwork Reduotion Act Notion, Gee your tax return Intruotion Cat No. 71479F THIS FORM IBA SIMULATION OF AN OFFICIAL U. 8. TAX FORM.IT 18 NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILING & OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 MoGraw-Hill Eduation. Schedule 1 Form 1040) 2020