Required: Complete the tax return on 2019 Form 540, and Schedule CA (540).

Annie and Arnold Morris live at 123 North Sherman St., Placerville, CA 95667. They have one dependent child, Barbara, age 3, and Bills Arnolds parents Maggie and Mel Morris also live with them. Maggies income was $3,054 and Mels income was $3,066, and Annie and Arnold provided more than half the cost of their support.

The Morris federal adjusted gross income was $107,460. Included in that amount, are wages of $61,000 and $48,485, California income tax refund of $320, interest received on a U.S. Savings bond of $165, long-term capital gains of $2,090, and California lottery winnings of $400. The federal AGI does not include interest income on City of Sacramento bonds of $625. They also had an allowable IRA deduction of $5,000. Previously, in 2018, the Morris family used itemized deductions and got full advantage from State Income Tax paid.

Their federal itemized deductions included $12,350 for home mortgage interest (the mortgage loan balance on their residence averaged $315,000), $6,200 for California income tax (W-2s 2019 withholding), $1,095 for State Disability Insurance (SDI), $3,890 real estate/property tax, $490 personal property tax on value of automobiles, and $2,620 in verifiable charitable cash contributions. Federal Schedule A total allowable itemized deduction amount is $24,970.

See the copy of partial information on the Morris Federal Form 1040 and Schedule A.

The Social Security numbers are: Annie 111-22-3333 (Birthdate 2/1/1981); Arnold 003-04-2020 (Birthdate 1/1/1981); Barbara 333-44-5555 (Birthdate 3/1/2016); Maggie 444-55-6666 (Birthdate 4/1/1941); and Mel 555-66-7777 (Birthdate 5/1/1941).

+ - [] No wupune okna [1132 Department of the Treasury - Internal Revenue Service (99) U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widower) (W) 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 first name and middle initial Last name Your social security number Arnold Morris OO 310 412 0 20 If joint return, spouse's first name and middle initial Last name Spouse's social security number Annie Morris 1 1 1/2 2 3 3 3 3 Home address (number and street). If you have a P.O. box, see instructions. Apt no. Presidential Election Campaign Check here if you, or your spouse if filing 123 North Sherman Street jointly, want $3 to go to this fund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Checking a box below will not change your tax or refund. Placerville, CA 95667 You Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and / here Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You Were born before January 2, 1955 Dependents (see instructions): (1) First name Last name Barbara Morris Maggie Morris Mel morris Are blind Spouse: Was born before January 2, 1955 Is blind (2) Social security number (3) Relationship to you (4) if qualities for (see instructions: Child tax credit Credit for other dependents 3 3 3 4 4 5 5 5 5 Daughter 14 4 4 5 5 6 6 6 6 Parent 15 5 5 6 6 7 7 77 Parent 109,485 165 . .. 2,090 720 : 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . 2a Tax-exempt interest . . . . 625 b Taxable interest. Attach Sch. B if required 3a Qualified dividends . . . . b Ordinary dividends. Attach Sch. B if required Standard Deduction for 4a TRA distributions. . . . . b Taxable amount . . . . . . Single or Married C Pensions and annuities . . . d Taxable amount . . . . . . filing separately, $12. 200 5a Social security benefits. . . b Taxable amount . . . . . Married filing 6 Capital gain or loss). Attach Schedule D if required. If not required, check here . . . . . jointly or Qualifying widowier). 7a Other income from Schedule 1, line 9 . . . . . . . . . . . . . . . . . $24.400 Head of b Add lines 1, 2, 3, 4, 4, 5, 6, and 7a. This is your total income . . . . . . . . . . . household 8a Adjustments to income from Schedule 1, line 22 . . . . . . . . . . . . . . . . . $18.350 . If you checked b Subtract line 8a from line 7b. This is your adjusted gross income . . . . ... . . . . . any box under 9 Standard deduction or itemized deductions (from Schedule A). . . . 24.970 Standard Deduction, 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A . . . 10 see instructions 11a Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . . b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O-. . . . . . . . . . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 112,460 5,000 107 460 11a 11b 24,970 82,490 Form 1040 (2019) + - [] No wupune okna m3 1 SCHEDULE 1 OMB No. 1545-0074 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Arnold Morris 003-04-2020 At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No Part Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes . . 320 2a Alimony received . . . . . . . . . . . . . . . . . . . b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule . ... .. . Other gains or losses). Attach Form 4797 .......... 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F .... Unemployment compensation 8 Other income. List type and amount Gambling 400 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 720 Part II Adjustments to Income 10 Educator expenses . . . 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903. 14 Deductible part of self-employment tax. Attach Schedule SE... 15 Self-employed SEP, SIMPLE, and qualified plans.... 16 Self-employed health insurance deduction.. 17 Penalty on early withdrawal of savings... 18a Alimony paid. b Recipient's SSN C Date of original divorce or separation agreement (see instructions) 19 IRA deduction ... .. .. . 5,000 Student loan interest deduction . ... 21 Tuition and fees. Attach Form 8917 .. 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a . . . 22 5,000 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 20 21 . . 3 SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040 or 1040-SR) Go to www.irs.gov/Schedule A for instructions and the latest information Rev. January 2020) 2019 Attach to Form 1040 or 1040-SR. Department of the Treasury Attachment Internal Revenue Service Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number Arnold Morris 003-04-2020 Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions) Dental 2 Enter amount from Form 1040 or 1040-SR, line 8b 2 107.460 Expenses 3 Multiply line 2 by 7.5% (0.075). 8,060 4 Subtract line 3 from line 1. If line 3 is more than line 1. enter-O- Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box. . . . . . . . . . . . . . U 5a 7.2951 b State and local real estate taxes (see instructions) . . . . . . . 5b 3.890 c State and local personal property taxes . . . . . . . . . . 5c d Add lines 5a through 5c ..... 50 11.675 e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) . . . . . . . . . . . . . . 5e 10.000 6 Other taxes. List type and amount nore than line 1 490 .. . .. 7 10,000 Interest You Paid Caution: Your mortgage interest deduction may be limited (see 7 Add lines 5e and 6 . . . . .. . . . . . . .. .. . . .. 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box . . .. . . .. .. . a Home mortgage interest and points reported to you on Form 1098. See instructions if limited . . . . . . . . . . . . . . 8a b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address. . . . . . . . . . . . . . . . . . . SD c Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . 8c d Mortgage insurance premiums (see instructions). ...... 8 e Add lines 8a through 8d. 8e 123501 9 Investment interest. Attach Form 4952 if required. See instructions. 9 10 Add lines 8e and 9 . . . . 10 12 350 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions. . . . . . . . . . . . . . . . . . . 2,620 Caution: If you 12 Other than by cash or check. If you made any gift of $250 or more, guit for it. See instructions. You must attach Form 8283 if over $500... 12 got a benefit for it. see instructions. 13 Carryover from prior year . . . . . . . . . . . . . . 13 14 Add lines 11 through 13............ 141 2.620 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions. . . . . . . . - Other 16 Other-from list in instructions. List type and amount Itemized Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 9 .. . Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box. . For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C Schedule A (Form 1040 or 1040-SR) 2019 24.970 + - [] No wupune okna [1132 Department of the Treasury - Internal Revenue Service (99) U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widower) (W) 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 first name and middle initial Last name Your social security number Arnold Morris OO 310 412 0 20 If joint return, spouse's first name and middle initial Last name Spouse's social security number Annie Morris 1 1 1/2 2 3 3 3 3 Home address (number and street). If you have a P.O. box, see instructions. Apt no. Presidential Election Campaign Check here if you, or your spouse if filing 123 North Sherman Street jointly, want $3 to go to this fund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Checking a box below will not change your tax or refund. Placerville, CA 95667 You Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and / here Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You Were born before January 2, 1955 Dependents (see instructions): (1) First name Last name Barbara Morris Maggie Morris Mel morris Are blind Spouse: Was born before January 2, 1955 Is blind (2) Social security number (3) Relationship to you (4) if qualities for (see instructions: Child tax credit Credit for other dependents 3 3 3 4 4 5 5 5 5 Daughter 14 4 4 5 5 6 6 6 6 Parent 15 5 5 6 6 7 7 77 Parent 109,485 165 . .. 2,090 720 : 1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . 2a Tax-exempt interest . . . . 625 b Taxable interest. Attach Sch. B if required 3a Qualified dividends . . . . b Ordinary dividends. Attach Sch. B if required Standard Deduction for 4a TRA distributions. . . . . b Taxable amount . . . . . . Single or Married C Pensions and annuities . . . d Taxable amount . . . . . . filing separately, $12. 200 5a Social security benefits. . . b Taxable amount . . . . . Married filing 6 Capital gain or loss). Attach Schedule D if required. If not required, check here . . . . . jointly or Qualifying widowier). 7a Other income from Schedule 1, line 9 . . . . . . . . . . . . . . . . . $24.400 Head of b Add lines 1, 2, 3, 4, 4, 5, 6, and 7a. This is your total income . . . . . . . . . . . household 8a Adjustments to income from Schedule 1, line 22 . . . . . . . . . . . . . . . . . $18.350 . If you checked b Subtract line 8a from line 7b. This is your adjusted gross income . . . . ... . . . . . any box under 9 Standard deduction or itemized deductions (from Schedule A). . . . 24.970 Standard Deduction, 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A . . . 10 see instructions 11a Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . . b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O-. . . . . . . . . . . For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 112,460 5,000 107 460 11a 11b 24,970 82,490 Form 1040 (2019) + - [] No wupune okna m3 1 SCHEDULE 1 OMB No. 1545-0074 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Arnold Morris 003-04-2020 At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No Part Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes . . 320 2a Alimony received . . . . . . . . . . . . . . . . . . . b Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule . ... .. . Other gains or losses). Attach Form 4797 .......... 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F .... Unemployment compensation 8 Other income. List type and amount Gambling 400 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 720 Part II Adjustments to Income 10 Educator expenses . . . 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903. 14 Deductible part of self-employment tax. Attach Schedule SE... 15 Self-employed SEP, SIMPLE, and qualified plans.... 16 Self-employed health insurance deduction.. 17 Penalty on early withdrawal of savings... 18a Alimony paid. b Recipient's SSN C Date of original divorce or separation agreement (see instructions) 19 IRA deduction ... .. .. . 5,000 Student loan interest deduction . ... 21 Tuition and fees. Attach Form 8917 .. 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a . . . 22 5,000 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019 20 21 . . 3 SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040 or 1040-SR) Go to www.irs.gov/Schedule A for instructions and the latest information Rev. January 2020) 2019 Attach to Form 1040 or 1040-SR. Department of the Treasury Attachment Internal Revenue Service Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number Arnold Morris 003-04-2020 Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions) Dental 2 Enter amount from Form 1040 or 1040-SR, line 8b 2 107.460 Expenses 3 Multiply line 2 by 7.5% (0.075). 8,060 4 Subtract line 3 from line 1. If line 3 is more than line 1. enter-O- Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box. . . . . . . . . . . . . . U 5a 7.2951 b State and local real estate taxes (see instructions) . . . . . . . 5b 3.890 c State and local personal property taxes . . . . . . . . . . 5c d Add lines 5a through 5c ..... 50 11.675 e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) . . . . . . . . . . . . . . 5e 10.000 6 Other taxes. List type and amount nore than line 1 490 .. . .. 7 10,000 Interest You Paid Caution: Your mortgage interest deduction may be limited (see 7 Add lines 5e and 6 . . . . .. . . . . . . .. .. . . .. 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box . . .. . . .. .. . a Home mortgage interest and points reported to you on Form 1098. See instructions if limited . . . . . . . . . . . . . . 8a b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address. . . . . . . . . . . . . . . . . . . SD c Points not reported to you on Form 1098. See instructions for special rules . . . . . . . . 8c d Mortgage insurance premiums (see instructions). ...... 8 e Add lines 8a through 8d. 8e 123501 9 Investment interest. Attach Form 4952 if required. See instructions. 9 10 Add lines 8e and 9 . . . . 10 12 350 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions. . . . . . . . . . . . . . . . . . . 2,620 Caution: If you 12 Other than by cash or check. If you made any gift of $250 or more, guit for it. See instructions. You must attach Form 8283 if over $500... 12 got a benefit for it. see instructions. 13 Carryover from prior year . . . . . . . . . . . . . . 13 14 Add lines 11 through 13............ 141 2.620 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions. . . . . . . . - Other 16 Other-from list in instructions. List type and amount Itemized Deductions Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 9 .. . Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box. . For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C Schedule A (Form 1040 or 1040-SR) 2019 24.970