Tax Return #1 Alejandro and Alicia Acevedo Use the following information to complete Alejandro and Alicia's 2019 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. For this first tax return assignment, you will need the following forms to complete this tax return: Form 1040, Schedule 1, and Schedule B. The forms, schedules, and instructions can be found in the Blackboard course under instructor resources or at the IRS web site (www.irs.gov). The instructions for each form can be helpful and can be found on the IRS web site. Alejandro and Alicia are married and have one child, Art, who is 16. Art is currently working at Baskin & Robbins and earned $1,012. He is attending high school and lived with his parents all year. The Acedevo's also support Alejandro's father, Jorge who lives in a small apartment down the street. Jorge earned $7,520 from Family Dollar this year. The Acevedo's pay most of Jorge's bills (food, rent, etc) for $2,000 per month. Alejandro works as an engineer for X2X Designs, Inc (see W-2 information). Alejandro also won $3,500 from the Texas Lottery. Alicia is a nurse practitioner and works at Horizon Family Care (see W-2 information). She was unemployed earlier in the year and received $2,019 of unemployment compensation. Alejandro and Alicia own their home and pay interest on their home loan (balance of $98,000, original loan was on 12/2/2015 for $205,000) and a personal loan to pay for two other cars they own for $39,000. Alejandro and Alicia want to file either married filing jointly or married filing separately, whichever is best for tax purposes. Based on this information and the information below, prepare Alejandro and Alicia's 2019 Federal tax return. . . The Acevedo's live at 3612 Willow Bend Ave, El Paso, TX 79922 Alejandro's birthday is 4/15/1978 and his Social Security number is 543-21-9651 Alicia's birthday is 3/21/1979 and her Social Security number is 555-96-3161 Art's birthday is 11/1/2003 and his Social Security number is 544-64-5759 Jorge Acevedo's birthday is 7/4/1955 and his Social Security #is 521-64-1513 The Acevedo's do not have any foreign bank accounts or trusts (Schedule B) Do not consider AMT tax for this tax return A $2,000 child tax credit is available for children under the age of 17 (box 13b Form 1040) and an additional $500 credit is available for other dependents claimed on the tax return over 18 years old (if they qualify as dependents). . Continued on Page 2 The Acevedo's have summarized the income and expenses they expect to report this year as follows: $ Income Alejandro's W2 Information: Salary Federal income tax withheld State income tax withheld Social Security tax withheld Medicare tax withheld 74,208 7,020 0 4,601 1,076 Alicia's W2 Information $ 44,420 Federal income tax withheld State income tax withheld Social Security tax withheld Medicare tax withheld 5,975 0 2,754 644 1,725 Interest income from bank account at Wells Fargo Bank Ordinary Dividend income from Hobby Lobby Stock Tax exempt interest income from El Paso municipal bond funds 2,075 800 Expenditures: Real estate taxes paid on residence Home mortgage interest paid Interest paid on Discover Credit Card Interest paid on loan for autos Medical Expenses (unreimbursed) Alejandro's Medical Prescriptions -Tax Preparation fees Cash contributions to the Rescue Mission (Alejandro has receipts) 2,006 4,002 162 3,005 2,110 305 1,200 1,150 . . Be sure to compute tax from the 2019 tax rate schedule on the amount on line 12a Form 1040. Be sure to mark the filing status on the top of Form 1040. Run the dependency tests for Art and Jorge to see if they qualify as dependents. . Tax Return #1 Alejandro and Alicia Acevedo Use the following information to complete Alejandro and Alicia's 2019 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. For this first tax return assignment, you will need the following forms to complete this tax return: Form 1040, Schedule 1, and Schedule B. The forms, schedules, and instructions can be found in the Blackboard course under instructor resources or at the IRS web site (www.irs.gov). The instructions for each form can be helpful and can be found on the IRS web site. Alejandro and Alicia are married and have one child, Art, who is 16. Art is currently working at Baskin & Robbins and earned $1,012. He is attending high school and lived with his parents all year. The Acedevo's also support Alejandro's father, Jorge who lives in a small apartment down the street. Jorge earned $7,520 from Family Dollar this year. The Acevedo's pay most of Jorge's bills (food, rent, etc) for $2,000 per month. Alejandro works as an engineer for X2X Designs, Inc (see W-2 information). Alejandro also won $3,500 from the Texas Lottery. Alicia is a nurse practitioner and works at Horizon Family Care (see W-2 information). She was unemployed earlier in the year and received $2,019 of unemployment compensation. Alejandro and Alicia own their home and pay interest on their home loan (balance of $98,000, original loan was on 12/2/2015 for $205,000) and a personal loan to pay for two other cars they own for $39,000. Alejandro and Alicia want to file either married filing jointly or married filing separately, whichever is best for tax purposes. Based on this information and the information below, prepare Alejandro and Alicia's 2019 Federal tax return. . . The Acevedo's live at 3612 Willow Bend Ave, El Paso, TX 79922 Alejandro's birthday is 4/15/1978 and his Social Security number is 543-21-9651 Alicia's birthday is 3/21/1979 and her Social Security number is 555-96-3161 Art's birthday is 11/1/2003 and his Social Security number is 544-64-5759 Jorge Acevedo's birthday is 7/4/1955 and his Social Security #is 521-64-1513 The Acevedo's do not have any foreign bank accounts or trusts (Schedule B) Do not consider AMT tax for this tax return A $2,000 child tax credit is available for children under the age of 17 (box 13b Form 1040) and an additional $500 credit is available for other dependents claimed on the tax return over 18 years old (if they qualify as dependents). . Continued on Page 2 The Acevedo's have summarized the income and expenses they expect to report this year as follows: $ Income Alejandro's W2 Information: Salary Federal income tax withheld State income tax withheld Social Security tax withheld Medicare tax withheld 74,208 7,020 0 4,601 1,076 Alicia's W2 Information $ 44,420 Federal income tax withheld State income tax withheld Social Security tax withheld Medicare tax withheld 5,975 0 2,754 644 1,725 Interest income from bank account at Wells Fargo Bank Ordinary Dividend income from Hobby Lobby Stock Tax exempt interest income from El Paso municipal bond funds 2,075 800 Expenditures: Real estate taxes paid on residence Home mortgage interest paid Interest paid on Discover Credit Card Interest paid on loan for autos Medical Expenses (unreimbursed) Alejandro's Medical Prescriptions -Tax Preparation fees Cash contributions to the Rescue Mission (Alejandro has receipts) 2,006 4,002 162 3,005 2,110 305 1,200 1,150 . . Be sure to compute tax from the 2019 tax rate schedule on the amount on line 12a Form 1040. Be sure to mark the filing status on the top of Form 1040. Run the dependency tests for Art and Jorge to see if they qualify as dependents