Question
Rick and Cindy Davis are married and file a joint return. They live at 3223 Taccone Ave., Apt. 37, Medford, MA 02155. Rick is an
Rick and Cindy Davis are married and file a joint return. They live at 3223 Taccone Ave., Apt. 37, Medford, MA 02155. Rick is an elementary school teacher in the Medford Public School system and Cindy is currently a homemaker after losing her job in late 2019. Cindys social security number is 412-34-5671 (date of birth 10/11/1981) and Ricks is 412-34-5670 (date of birth 3/19/1979).
Ricks W-2 contained the following information:
Wages (box 1) = | $ 70,245.55 |
---|---|
Federal W/H (box 2) = | $ 5,924.43 |
Social security wages (box 3) = | $ 70,245.55 |
Social security W/H (box 4) = | $ 4,355.22 |
Medicare wages (box 5) = | $ 70,245.55 |
Medicare W/H (box 6) = | $ 1,018.56 |
Rick and Cindy have interest income of $237 from a savings account at Boston State Bank.
Cindy also owns stock in Microsoft. Cindy received $265 in qualified dividends from Microsoft in 2020. Rick was divorced in 2014 and pays his ex-wife (Mary Tortelli) alimony. Their original divorce decree, which remains unchanged, dictates that Rick pay Mary $525 per month in alimony for 10 years. Marys social security number is 412-34-5675.
Cindy received unemployment compensation of $3,800 during 2020 and no taxes were withheld from the payments. Additionally, Rick won a $1,100 prize in a nationally sponsored fantasy football league and no income taxes were withheld from his winnings. Rick also spent $355 on supplies for his classroom for which he was not reimbursed.
Required: Prepare a Form 1040 and Schedule 1 for Rick and Cindy Davis. Rick and Cindy did not receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during 2020.
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