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.
- Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
- Ken sold 1,000 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.
- 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.
- Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
- 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.
- Kens 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.
- Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $12,050 in itemized deductions last year (the standard deduction for a single filer was $12,000).
- Ken received $30,000 of interest from corporate bonds and money market accounts.
Do not write staple in this space E10 4 0 Department of the Treasury Internal Revenue Service (99) U.S. Individual Income Tax Return Filing status: Single [Married filing jointly Married filling separately Your first name and initial Last name OMB No 1545-0074 IRS Use Only Head of household D Qualifying widowier) Your social security number You were born batore January 2, 1964 Your standard deduction Someone can claim you as a dependent If joint return, spouse's first name and initial Last name You are blind Spouse's social security number Spouse standard deduction Someone can claim your spouse as a dependent Spouse was bom before January 2, 1954 Spouse is blind Spouse item as on a separate return or you were dual-status alien Home address (number and street) If you have a P O bax, see instructions Apt no Full-year health care coverage or exempt (see Inst.) Presidential Election Campaign (seeinsl.) You Spouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6 If more than four dependents. see inst, and here Dependents (see instructions): (1) First name (2) Social security number (3) Relationship to you (4) ifqualities for (see Instr Child tax credit Credit for other dependents Last name Sign Here Under penalties of perjury, I declare that I have examined this retum and accompanying schedules and statements, and to the best of my knowledge and belied, they are true, correct, and complete. Deration of prepare (other than taxpayer) is based on all information of which preparar has any knowledge Your signature Date Your occupation If the RS sent you an identity Protection Joint return? PIN, enter it See instructions hare genstl Keep a copy for Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the RS sent you an identity Protection your records. PIN, enter it here see inst Preparer's name Preparer's signature Paid Firm's EIN Check if Preparer 3rd Party Designee Firm's name Use Only Phone no. Self-employed Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions Cat No. 11320B Form 1040 2010) Page 2 2a 2b 4b 5b Sa so | 12 Form 1040 (2018) Wages, salaries, tips, etc. Attach Form(s), W-2 2a Tax-exempt interest - . b Taxable interest. . . Attach Forms) W-2 AS attach 3a Qualified dividends b Ordinary dividends FormW -2G and IRAS, pensions, and annuities 4a 1099-R tax was b Taxable amount . . . Social Security benefits | 5a b Taxable amount Total income. Addlines 1 through 5. Add any amount from Schedule 1.line22 Adjusted gross income if you have no adjustments to income, enter the amount from line 6, otherwise subtract Schedule 1. line 36, from line 8 . Standard . . . . . . . . . . . . . . Deduction for- Standard deduction or itemized deductions (from Schedule A) . . Single or married fiing separately. Qualified business income deduction (see instructions) . . . . . . . . . . . . . $12,000 Taxable income Subtract lines 8 and 9 from line 7. If zero or less, enter-O- - Married fling jointly or Qualifying 11a Tax (see inst.) (check if any from 1 Form(s) 88142 Form 4972 30 widower). $24,000 b Add any amount from Schedule 2 and check here Head of 12 a Child tax credit credit for other dependents bAdd any amount from Schedule 3 and check here household, $18,000 Subtract line 12 from line 11. If zero or 1955, enter - - - . - - - - - - If you checked Other laxes. Allach Schedule 4 . . . . . . . . . . . . . . . . . any box under Standard Total tax. Add lines 13 and 14 . deduction see instructions Federal income tax withheld from Forms W-2 and 1099 17 Refundable credits: a EIC (seeinst.) b5ch 3812 cForm 3863 Add any amount from Schedule 5 Add lines 16 and 17. These are your total payments 19 Refund If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid. . . . 20 Amount of line 19 you want refunded to you. If Form 3808 is attached, check here............................. D Direct deposit? b Routing number c Type Checking Savings See instructions d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax. Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions........ ...... 23 Estimated tax penalty (see instructions) ... . 23 Go to www.irs gowForm 1040 for instructions and the latest information 19 200 ay see instrucions.-- 22 Form 1040 (2018)
