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Required: Use the following information to complete Paige Turner's 2020 federal income tax return. If any information is missing, use reasonable assumptions to fill in
Required: Use the following information to complete Paige Turner's 2020 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps and make a notation on your supporting documentation record. Remember without supporting work no partial credit can be awarded. Facts: 1. Paige Turner is single and has two children from her previous marriage. Ali lives with Paige, and Paige provides more than half of her support. Leif lives with his father, Will (Leif lived with Will for all of 2020). Will provides more than half of Leif's support. Paige provides you with the following additional information: . . She uses the cash method of accounting and a calendar year for reporting. She wishes to contribute to the presidential election campaign. Paige lives at 523 Essex Street, Bangor, Maine 04401. Paige's birthday is May 31, 1981. Ali's birthday is October 5, 2010. Leif's birthday is December 1, 2008. Paige's Social Security number is 007-XX-4727. Ali's Social Security number is 005-XX-7232. Leif's Social Security number is 004-XX-3419. Will's Social Security number is 006-XX-6333. She does not have any foreign bank accounts or trusts. 2. Paige is employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). ASCI's federal employer identification number is 79-1234466. Paige's pay stubs indicate that she had $4,230 withheld in federal taxes, $4,987 in state taxes, $4,495 in Social Security taxes, and $1,051 in Medicare taxes. ASCI has an extensive fringe benefits program for its employees. 3. Paige earned salary of $70,000 [before subtracting her 401(k) and flexible spending plan contributions]. She contributed $7,000 to her 401(k) account, and she contributed $2,500 to her flexible spending account. 4. ASCI paid $397 of whole life insurance premiums to cover Paige's personal whole life insurance policy. ASCI also paid health club dues of $900 to a nearby health club on Paige's behalf. 5. Taking advantage of ASCI's educational assistance program, during the fall Paige enrolled in two graduate engineering classes at a local college. ASCI paid her tuition, fees, and other course-related costs of $2,300. 6. Paige received free parking in the company's security garage that would normally cost $200 per month. 7. Paige manages the safety program for ASCI. In recognition of her superior handling of three potential crises during the year, Paige was awarded the Employee Safety Award on December 15. The cash award was $500. 8. On January 15, 2020, Paige's father died. From her father's estate, she received stock valued at $30,000 (his basis was $12,000) and her father's house valued at $90,000 (his basis in the house was $55,000). 9. Paige owns several other investments and in February 2021 received a statement from her brokerage firm reporting the interest and dividends earned on the investments for 2020. (See Exhibit A.) Required: Use the following information to complete Paige Turner's 2020 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps and make a notation on your supporting documentation record. Remember without supporting work no partial credit can be awarded. Facts: 1. Paige Turner is single and has two children from her previous marriage. Ali lives with Paige, and Paige provides more than half of her support. Leif lives with his father, Will (Leif lived with Will for all of 2020). Will provides more than half of Leif's support. Paige provides you with the following additional information: . . She uses the cash method of accounting and a calendar year for reporting. She wishes to contribute to the presidential election campaign. Paige lives at 523 Essex Street, Bangor, Maine 04401. Paige's birthday is May 31, 1981. Ali's birthday is October 5, 2010. Leif's birthday is December 1, 2008. Paige's Social Security number is 007-XX-4727. Ali's Social Security number is 005-XX-7232. Leif's Social Security number is 004-XX-3419. Will's Social Security number is 006-XX-6333. She does not have any foreign bank accounts or trusts. 2. Paige is employed as a nuclear engineer with Atom Systems Consultants, Inc. (ASCI). ASCI's federal employer identification number is 79-1234466. Paige's pay stubs indicate that she had $4,230 withheld in federal taxes, $4,987 in state taxes, $4,495 in Social Security taxes, and $1,051 in Medicare taxes. ASCI has an extensive fringe benefits program for its employees. 3. Paige earned salary of $70,000 [before subtracting her 401(k) and flexible spending plan contributions]. She contributed $7,000 to her 401(k) account, and she contributed $2,500 to her flexible spending account. 4. ASCI paid $397 of whole life insurance premiums to cover Paige's personal whole life insurance policy. ASCI also paid health club dues of $900 to a nearby health club on Paige's behalf. 5. Taking advantage of ASCI's educational assistance program, during the fall Paige enrolled in two graduate engineering classes at a local college. ASCI paid her tuition, fees, and other course-related costs of $2,300. 6. Paige received free parking in the company's security garage that would normally cost $200 per month. 7. Paige manages the safety program for ASCI. In recognition of her superior handling of three potential crises during the year, Paige was awarded the Employee Safety Award on December 15. The cash award was $500. 8. On January 15, 2020, Paige's father died. From her father's estate, she received stock valued at $30,000 (his basis was $12,000) and her father's house valued at $90,000 (his basis in the house was $55,000). 9. Paige owns several other investments and in February 2021 received a statement from her brokerage firm reporting the interest and dividends earned on the investments for 2020. (See Exhibit A.)
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