Required information [The following information applies to the questions displayed below.] Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2020 To the friendly student tax preparer: Hi, it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady Jr. The judge owed me a few favors and I really love the kid. He lives with me full time and my wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess. I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8!). Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year and have receipt documentation for all contributions). I'm such a nice guy! gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff!! contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I don't even miss it because Roca Cola takes it right off my paycheck every month ... $15 a month starting in July. My out, I don't even miss it because Roca Cola takes it right off my paycheck every month ... $15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out. I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house. A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school. I did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. That should be all the information you need right now. Please calculate my taxable income and complete page 1 of Form 1040 (through taxable income, line 11b) and Schedule A. You're still doing this for free, right? b. Complete pages 1 of Form 1040 (through taxable income, line 10) and Schedule A. Shady Slim's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Shady Slim: 123-45-6789 Shady Slim,Jr: 222-22-2222 (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2020 tax rules regardless of year on form) Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 - U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only - Do 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 first name and middle initial Your social security number Last name (Enter as xxx-xx-xxxx) If joint return, spouse'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 Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). your tax or refund. You Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here Someone can Standard You as a dependent Your spouse as a dependent claim: Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): (1) First name Last name (Enter as xxx-xx-xxxx) Child tax credit Credit for other dependents 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest 2a 2b b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required 3a Qualified dividends 3b 4a IRA distributions 4a b Taxable amount 4b c Pensions and annuities 4c d Taxable amount 4d 5a Social security benefits 5 b Taxable amount 5b 6 Capital gain or loss). Attach Schedule D if required. If not required, check here 6 7a Other income from Schedule 1, line 9 7a Standard Deduction for Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 . If you checked any box under Standard Deduction, see instructions. b Add lines 1, 2b, 36, 4, 40, 55, 6, and 7a. This is your total income 7b 0 8a 8a Adjustments to income from Schedule 1, line 22 b Subtract line 8a from line 7b. This is your adjusted gross income 8b 0 9 9 Standard deduction or itemized deductions (from Schedule A) 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A . A 10 11a Add lines 9 and 10 11a 0 b Taxable income. Subtract line 11a from line 8b 11b 0 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) 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. 2020 McGraw-Hill Education. OMB No. 1545-0074 SCHEDULE A (Form 1040 or 1040-SR) Itemized Deductions 2019 Department of the Treasury Go to www.irs.gov/ScheduleA for instructions and the latest information. Attach to Form 1040 or 1040-SR. Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16 Internal Revenue Service (99) Attachment Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) Medical and Dental Expenses 2 Enter amount from Form 1040 or 1040-SR, line 8b 2 3 Multiply line 2 by 10% (0.10) 4 Subtract line 3 from line 1. If line 3 is more than line 1. enter-O- 4 0 5 State and local taxes. Taxes You 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, 5a check this box b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c Add through 5c 5d 5e e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount 6 7 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home Interest You mortgage loan(s) to buy, build, or improve your home, see Paid instructions and check this box Paid 8a Caution: Your mortgage interest deduction may be limited (see instruction) a Home mortgage interest and points reported to you on Form 1098. See instructions if limited b Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8b 8c c Points not reported to you on Form 1098. See instructions for special rules d Reserved 8d 0 10 0 e Add lines 8a through 8c 8e 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines 8e and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see 11 instructions Charity 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 12 Caution: If you made a gift and got a benefit 13 Carryover from prior year 13 for it, see instructions. 14 Add lines 11 through 13 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Theft Losses Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other 16 Otherfrom list in instructions. List type and amount Itemized Deductions 14 0 15 16 17 0 Total Itemized Deductions 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 9 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 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. 2020 McGraw-Hill Education. Required information [The following information applies to the questions displayed below.] Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2020 To the friendly student tax preparer: Hi, it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady Jr. The judge owed me a few favors and I really love the kid. He lives with me full time and my wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess. I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8!). Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year and have receipt documentation for all contributions). I'm such a nice guy! gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff!! contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I don't even miss it because Roca Cola takes it right off my paycheck every month ... $15 a month starting in July. My out, I don't even miss it because Roca Cola takes it right off my paycheck every month ... $15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out. I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house. A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school. I did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. That should be all the information you need right now. Please calculate my taxable income and complete page 1 of Form 1040 (through taxable income, line 11b) and Schedule A. You're still doing this for free, right? b. Complete pages 1 of Form 1040 (through taxable income, line 10) and Schedule A. Shady Slim's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Shady Slim: 123-45-6789 Shady Slim,Jr: 222-22-2222 (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2020 tax rules regardless of year on form) Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 - U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only - Do 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 first name and middle initial Your social security number Last name (Enter as xxx-xx-xxxx) If joint return, spouse'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 Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). your tax or refund. You Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here Someone can Standard You as a dependent Your spouse as a dependent claim: Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): (1) First name Last name (Enter as xxx-xx-xxxx) Child tax credit Credit for other dependents 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest 2a 2b b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required 3a Qualified dividends 3b 4a IRA distributions 4a b Taxable amount 4b c Pensions and annuities 4c d Taxable amount 4d 5a Social security benefits 5 b Taxable amount 5b 6 Capital gain or loss). Attach Schedule D if required. If not required, check here 6 7a Other income from Schedule 1, line 9 7a Standard Deduction for Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 . If you checked any box under Standard Deduction, see instructions. b Add lines 1, 2b, 36, 4, 40, 55, 6, and 7a. This is your total income 7b 0 8a 8a Adjustments to income from Schedule 1, line 22 b Subtract line 8a from line 7b. This is your adjusted gross income 8b 0 9 9 Standard deduction or itemized deductions (from Schedule A) 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A . A 10 11a Add lines 9 and 10 11a 0 b Taxable income. Subtract line 11a from line 8b 11b 0 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) 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. 2020 McGraw-Hill Education. OMB No. 1545-0074 SCHEDULE A (Form 1040 or 1040-SR) Itemized Deductions 2019 Department of the Treasury Go to www.irs.gov/ScheduleA for instructions and the latest information. Attach to Form 1040 or 1040-SR. Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16 Internal Revenue Service (99) Attachment Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) Medical and Dental Expenses 2 Enter amount from Form 1040 or 1040-SR, line 8b 2 3 Multiply line 2 by 10% (0.10) 4 Subtract line 3 from line 1. If line 3 is more than line 1. enter-O- 4 0 5 State and local taxes. Taxes You 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, 5a check this box b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c Add through 5c 5d 5e e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount 6 7 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home Interest You mortgage loan(s) to buy, build, or improve your home, see Paid instructions and check this box Paid 8a Caution: Your mortgage interest deduction may be limited (see instruction) a Home mortgage interest and points reported to you on Form 1098. See instructions if limited b Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8b 8c c Points not reported to you on Form 1098. See instructions for special rules d Reserved 8d 0 10 0 e Add lines 8a through 8c 8e 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines 8e and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see 11 instructions Charity 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 12 Caution: If you made a gift and got a benefit 13 Carryover from prior year 13 for it, see instructions. 14 Add lines 11 through 13 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Theft Losses Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other 16 Otherfrom list in instructions. List type and amount Itemized Deductions 14 0 15 16 17 0 Total Itemized Deductions 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 9 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 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. 2020 McGraw-Hill Education