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 $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis for investment) in the stock was $31 per share. c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000. d. Ken received $13,000 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 $500 cash scholarship to attend. He used $300 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 $1,100. 9. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year, Ken claimed $12,450 in itemized deductions last year (the standard deduction for a single filer was $12,400). h. Ken received $30,000 of interest from corporate bonds and money market accounts. SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income OMB No. 1545-0074 2020 Attachment Sequence No. 01 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest Information Name() shown on Form 1040, 1040-SR, or 1040-NR Your social security number 111-22-3333 ken Part 1 1 1 20 2a b 3 4 4 5 Additional Income Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (se instructions) Business income or (on). Attach Schedule Other gains or loses). Attach Form 4707 Rental real estate, royalties, partnerships, corporation, trusts, etc. Attach Schedule Farm Income or own). Attach Schedule Unemployment compensation Other Income List type and amount Combine lines through & Enter here and on Fom 1040 1040 or 1040-NR, in Adjustments to Income 6 7 . 8 . Part II 10 11 11 12 13 14 14 15 15 16 17 17 Part II Adjustments to Income 10 Educator expenses Certain business expenses of roservists, performing artists, and foe-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 Deductible part of self-employment tax. Altach Schedule SE Self-employed SEP, SIMPLE, and qualified plans 16 Self-employed health insurance deduction Penalty on early withdrawal of savings 18a Alimony paid Recipient's SSN Date of original divorce or separation agreement (000 instructions) IRA deduction 20 Student loan interest deduction 20 21 Tuition and fees deduction. Attach Form 8917 22 Add lines 10 through 21. These are your adjustments to Income. Enter here and on Form 1040, 1040-SR, or 1040-NR. line 100 For Paperwork Reduction Act Notice, see your tax return instructions Schedule 1 (Form 10402020 THIS FORM IS 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. 18a b 19 19 21 22 Cat No. 71479F