Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tax Return (50 points) Amanda Jones engaged you to prepare her 2020 federal individual income tax return. She is not married and has no dependents.
Tax Return (50 points) Amanda Jones engaged you to prepare her 2020 federal individual income tax return. She is not married and has no dependents. Her address is 123 Main Street, Wilmore, KY. Her social security number is 123-45-6789. Her date of birth is June 1, 1965. She is not blind, and no other person can claim her as a dependent on their tax return. She retired from her job in 2020 to pursue full-time management of her rental property. She began receiving monthly pension and Social Security benefits on September 1. Sally previously purchased a pension annuity for $110,000. She provides you with the following information from the 2020 tax year. Prepare her 2020 income tax return. Salary - $45,000 Federal income tax withheld from salary - $5,500 Interest received on a savings account - $750 Interest received on a municipal bond - $1,000 Rental income - $12,000 Rental expenses - $15,000 She received life insurance proceeds of $150,000 due to the death of her father. Monthly pension income received - $475 Monthly Social Security benefits received - $400 Total itemized deductions - $12,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started