Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2020. She is
Question:
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2020. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced on 12/31/2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heathers support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,000 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,800 in state income taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:
Insurance premiums | $ | 7,952 |
Medical care expenses | $ | 1,100 |
Prescription medicine | $ | 350 |
Nonprescription medicine | $ | 100 |
New contact lenses for Heather | $ | 200 |
|
Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $900 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasnt able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,500 interest income from City of Denver municipal bonds. Overall, Rebas stock portfolio appreciated by $12,000, but she did not sell any of her stocks. Heather reported $6,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heathers only source of income for the year. Reba had $10,000 of federal income taxes withheld by her employer. Heather made $1,000 of estimated tax payments during the year. Reba did not make any estimated payments. Reba had qualifying insurance for purposes of the Affordable Care Act (ACA).
Using the information from part a-1, Complete pages 1 and 2, Schedule 1, and Schedule 3 of Form 1040 for Reba.
Reba Dixon's address is 19010 N.W. 135th Street, Miami, FL 33054.
Social security numbers:
Reba Dixon: 111-11-1111
Heather Dixon: 222-22-2222
(Input all the values as positive numbers. Use 2020 tax rules regardless of year on tax form. Round your intermediate computations and final answers to the nearest whole dollar amount.)
Transcribed image text: 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Page 1 of Form 1040. Use provided information and follow instructions on form. 2019 OMB No. 1545-0074 IRS Use OnlyDo not write in this space Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box a child but not your dependent Your social security number Your first name and middle initial Last name (Enter as xxx-xx-xxxx) Reba Dixon 111-11-1111 If joint return, spouse's first name and middle initial Last name Spouse's social security number Apt. no. Presidential Election Campaign Home address (number and street). If you have a P.O. box, see instructions. 19010 N.W. 135th Street Check here if you, or your spouse if filing jointly, want to go to this fund. Checking a box below will not chan your tax or refund City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Miami, FL 33054 Foreign country name Foreign province/state/county Foreign postal code Spouse You If more than four dependents, see instructions and here Someone can claim: You as a dependent Your spouse as a dependent Standard Deduction Spouse itemizes on a separate return or you were a dual-status alien uction Spouse itemizes on a separate return or you were a dual-status alien /Blindness You: Were born before January 2, 1955 Are blind endents (see instructions): (2) Social security number 1) First name Last name (Enter as xxx-xx-xxxx) ather Dixon 222-22-2222 Spouse: Was bom before January 2, 1955 , | Is blind (3) Relationship to you (4) Vif qualifies for (see instructions): Child tax credit Credit for other dependents Daughter 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 38,000 2a Tax-exempt interest 2a 2b 3a Qualified dividends 3a b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. Bif required b b Taxable amount 3b 4a IRA distributions 4a 4b Pensions and annuities 4c d Taxable amount 4d 5a 1.200 b Taxable amount 5b 1,200 2,200 6 5a Social security benefits 6 Capital gain or loss). Attach Schedule D if required. If not required, check here (. , 7a Other income from Schedule 1, line 9 b Add lines 1, 2b, 36, 45, 40, 56, 6, and 7a. This is your total income 8a Adjustments to income from Schedule 1, line 22 7a ndard uction for- ngle or ried 1 separately 200 irried filing ly or lifying w(er). 400 ad of sehold, 350 ou checked box under ndard uction 14.400 7b 55,800 8a b Subtract line 8a from line 7b. This is your adjusted gross income 8b 55,800 9 Standard deduction or itemized deductions (from Schedule A) 9 Form 1040 (2019) Page 2 12a 12b 12a Tax (see inst.) Check if any from Form(s): O (1) 8814 D (2) 4972 (3) b Add Schedule 2, line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents b Add Schedule 3, line 7, and line 13a and enter the total 13a 13b 14 15 16 17 14 Subtract line 13b from line 12b. If zero or less, enter-O- 15 Other taxes, including self-employment tax from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 - 18 Other payments and refundable credits: a Earned income credit (EIC) b . b Additional child tax credit. Attach Schedule 8812 c American opportunity credit from Form 8863, line 8 18a . If you have a qualifying child attach Sch. EIC. . If you have nontaxable combat pay, see instructions 18b 18c d Schedule 3. line 14 18d 18e 0 19 0 20 Refund e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here Routing number -c Type: Checking >d Account number 21a Savings Direct deposit? See instructions 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount You Owe 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) 24 Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. Third Party Designee DO No (Other than paid preparer) Sign Here Designee's Phone Personal identification name no . - number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Spouse's signature. If a joint return, both must sign. If the IRS sent your spouse an Date Spouse's occupation Identity Protection PIN, enter it here (see inst) Joint return? See instructions. Keep a copy for your records. Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if: Paid Preparer Use Only 3rd Party Designee Self-employed Firm's name Phone no. Firm's address Firm's EIN Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2019) TU PODACIMATION CAMERA TAVODLICNOTTUACICAL PONTIDOTUTU PODATA IT IS NOT HIMC ADAMY DUDATUD SCHEDULE 1 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income OMB No. 1545-0074 2019 Attachment Sequence No. 01 Your social security number (Enter as xxx-xx-xxxx) 111-11-1111 Yes No 1 Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 or 1040-SR Reba Dixon At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in anyvirtual currency? Partl Additional Income Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or loss). Attach Schedule F Unemployment compensation Other income. List type and amount 2a 2a b 3 3 4 4 5 5 6 6 7 7 8 8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a Transcribed image text: 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Page 1 of Form 1040. Use provided information and follow instructions on form. 2019 OMB No. 1545-0074 IRS Use OnlyDo not write in this space Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box a child but not your dependent Your social security number Your first name and middle initial Last name (Enter as xxx-xx-xxxx) Reba Dixon 111-11-1111 If joint return, spouse's first name and middle initial Last name Spouse's social security number Apt. no. Presidential Election Campaign Home address (number and street). If you have a P.O. box, see instructions. 19010 N.W. 135th Street Check here if you, or your spouse if filing jointly, want to go to this fund. Checking a box below will not chan your tax or refund City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Miami, FL 33054 Foreign country name Foreign province/state/county Foreign postal code Spouse You If more than four dependents, see instructions and here Someone can claim: You as a dependent Your spouse as a dependent Standard Deduction Spouse itemizes on a separate return or you were a dual-status alien uction Spouse itemizes on a separate return or you were a dual-status alien /Blindness You: Were born before January 2, 1955 Are blind endents (see instructions): (2) Social security number 1) First name Last name (Enter as xxx-xx-xxxx) ather Dixon 222-22-2222 Spouse: Was bom before January 2, 1955 , | Is blind (3) Relationship to you (4) Vif qualifies for (see instructions): Child tax credit Credit for other dependents Daughter 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 38,000 2a Tax-exempt interest 2a 2b 3a Qualified dividends 3a b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. Bif required b b Taxable amount 3b 4a IRA distributions 4a 4b Pensions and annuities 4c d Taxable amount 4d 5a 1.200 b Taxable amount 5b 1,200 2,200 6 5a Social security benefits 6 Capital gain or loss). Attach Schedule D if required. If not required, check here (. , 7a Other income from Schedule 1, line 9 b Add lines 1, 2b, 36, 45, 40, 56, 6, and 7a. This is your total income 8a Adjustments to income from Schedule 1, line 22 7a ndard uction for- ngle or ried 1 separately 200 irried filing ly or lifying w(er). 400 ad of sehold, 350 ou checked box under ndard uction 14.400 7b 55,800 8a b Subtract line 8a from line 7b. This is your adjusted gross income 8b 55,800 9 Standard deduction or itemized deductions (from Schedule A) 9 Form 1040 (2019) Page 2 12a 12b 12a Tax (see inst.) Check if any from Form(s): O (1) 8814 D (2) 4972 (3) b Add Schedule 2, line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents b Add Schedule 3, line 7, and line 13a and enter the total 13a 13b 14 15 16 17 14 Subtract line 13b from line 12b. If zero or less, enter-O- 15 Other taxes, including self-employment tax from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 - 18 Other payments and refundable credits: a Earned income credit (EIC) b . b Additional child tax credit. Attach Schedule 8812 c American opportunity credit from Form 8863, line 8 18a . If you have a qualifying child attach Sch. EIC. . If you have nontaxable combat pay, see instructions 18b 18c d Schedule 3. line 14 18d 18e 0 19 0 20 Refund e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here Routing number -c Type: Checking >d Account number 21a Savings Direct deposit? See instructions 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount You Owe 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) 24 Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. Third Party Designee DO No (Other than paid preparer) Sign Here Designee's Phone Personal identification name no . - number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Spouse's signature. If a joint return, both must sign. If the IRS sent your spouse an Date Spouse's occupation Identity Protection PIN, enter it here (see inst) Joint return? See instructions. Keep a copy for your records. Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if: Paid Preparer Use Only 3rd Party Designee Self-employed Firm's name Phone no. Firm's address Firm's EIN Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2019) TU PODACIMATION CAMERA TAVODLICNOTTUACICAL PONTIDOTUTU PODATA IT IS NOT HIMC ADAMY DUDATUD SCHEDULE 1 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income OMB No. 1545-0074 2019 Attachment Sequence No. 01 Your social security number (Enter as xxx-xx-xxxx) 111-11-1111 Yes No 1 Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 or 1040-SR Reba Dixon At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in anyvirtual currency? Partl Additional Income Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or loss). Attach Schedule F Unemployment compensation Other income. List type and amount 2a 2a b 3 3 4 4 5 5 6 6 7 7 8 8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a