Required Information [The following information applies to the questions displayed below.] Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. a. Ken won $1,240 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1.040 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share. c. Ken received $25.400 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $213,360. d. Ken received $13,100 in disability benefits for the year. He purchased the disability insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $540 cash scholarship to attend. He used $320 to pay for his books and tuition and he applied the rest toward his new car payment. f Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,160. 9. Ken received a $630 refund of the $3.640 in state income taxes his employer withheld from his pay last year. Ken claimed $12.490 in itemized deductions last year (the standard deduction for a single filer was $12.400). h. Ken received $30,400 of interest from corporate bonds and money market accounts. 2. Complete page 1 of Form 1040 through line 9 and Schedule 1 for Ken. (Input all the values os positive numbers. Enter any non- financlal Information, (e.g. Nemes, Addresses, social securlty numbers) EXACTLY as they appear in any glven Information or Problem Statement. Use 2021 tax rules regardless of year on tax form.) Department of the Treasury-Intemal Revenue Service (99) Form 1040 U.S. Individual Income Tax Return 2020 OMB No 1545-0074 IRS Use Only Do not write ar staple in this space Filling Status Single Married filing jointly Married filing separately (MES) Head of household (HOH) Qualifying 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 child's name if the qualifying person is one box child but not your dependent. Your first name and middle initial Last name Your social security number Ken 111-22-3333 Spouse's social security number joint retum, spause's first name and middle initial Last name Home address (number and street). If you have a P.O.box, see instructions. Apt.no Presidential Election Campaign City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code Check here if you, or your spouse if filing jointly want 53 to go to this fund. Checking a box below will not change your lax or refund Foreign country name Foreign province state/county Foreign postal code You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Standard Sameone can dan 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 bom before January 2, 1958 Are blind Spouse: Was born before January 2, 1956 Is blind Dependente (see instructions: (2) Social security number (3) Relationship to you (4) Vif qualifies for see instructions (1) First name Last name Child tax credit Credit for ather dependents of more than four dependents, see instructions and check here 1 Wages, salaries, tips, etc. Attach Forms) W-2 2a Tax-exempt interest 2a b Taxable interest 2b Atlach Sch. Bif required Su Qualified dividends 3a Ordinary dividends 3b 4a IRA distributions 4a b Taxable amount 4b Sa Pensions and annuities 5a b Taxable amount 5b 8a Social security benefits ba b Taxable amount 6b 7 Capital gain or loss). Allach Schedule Dif required. If not required, check here 7 Standard & Other income from Schedule 1. line 9 8 Deduction for Single or Married 9 Add lines 1, 2, 3, 4, 5, 6, 7 and 8. This is your total income 9 filing separately $12,400 10 Adjustments to income. Married filing jointly or Qualifying a From Schedule 1, line 22 10a widower). $24,800 Head of b Charitable contributions if you take the standard deduction. See instruction 105 household S18,650 Add lines 10 and 10. These are your tatal adjustments to income 100 If you checked any box under 11 Subtract line 10c from line. This is your adjusted gross income 11 Standard Deduction, 12 Standard deduction or itemized seductions (from Schedule A) 12 see instructions 13 Qualified business income deduction. Attach Form a995 or Form 8995 A 13 14 Add lines 12 and 13 14 15 Taxable income. Subtract line 14 from Ene 11. If zero or less, entero 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice 29e separate instructions. Cat No. 113200 Form 1040 (2020) THIS FORMS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education. OMB No. 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2020 Department of the Treasury Internal Revenue Service Name() shown on Form 1040, 1040 SR, Gr 1040-NR. Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information. Attachment Sequence No. 01 Your social security number Part I 1 Additional Income Taxable refunds, Credits, or altsets of state and local income taxes Alimany received 1 2a 2a b S 3 4 4 5 5 6 G 7 Dale of original divarce or separation agreement (see instructions) Business income or loss). Attach Schedule Other gains ar asses). Attach Farm 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 Combine lines 1 through B. Enter here and on Farm 1040 1040-SR, or 1040-NR, line 8 Adjustments to Income Educator expenses Certain business expenses af reservists, performing artists, and fee basis gavernment officials. Attach Form 2106 7 8 9 9 Part II 10 10 11 11 12 12 13 13 14 14 15 15 Health Savings account deduction Allach Farm 889 Moving expenses for members of the Armed Forces. Attach Farm 3903 Deductible part of self-employment tax. Attach Schedule SE Self-employed SER, SIMPLE, and qualified plans Self-employed health insurance deduction Penalty on early withdrawal of savings Alimony paid Recipient's SSN 16 16 17 17 18a 18a b Date of original divorce or separation agreement see instructions IRA deduction 19 19 20 20 Student loan interest deduction Tuition and fees deduction, Atlach Form 8917 21 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and an Foren 1040, 1040 SR, or 1040-NR. line 10a 22 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71475F Schedule 1 (Form 1040)2020