. . . Tax Return Details: You are preparing a 2020 Federal Income Tax Retum for Sue Smith. You are not preparing a state tax return. She does not want to e-file. She wants to file a paper tax return. if she is expected to receive a refund, she does not want to direct deposit the refund. She will be patient and wait on a paper refund check to come in the mail. Sue Smith works as an IT Analyst. Her SSN is provided on her W-2. Sue's date of birth is 8/4/1974 and her phone number is (912) 555-5555. Sue is not married. Sue has a daughter who lived with her all year, Katie Smith, who she claims as a dependent. Katie's date of birth is 3/21/2017. Katie is a U.S. citizen, and her SSN is 251-00-9900 Sue's employer pays all of her health insurance premiums as an employee benefit, so Sue did not purchase health insurance from a state marketplace or healthcare.gov Sue has provided you with the following documents related to her 2020 tax return (see attached): o 1099-INT, showing interest income from a savings account at a bank o 1098-E, showing her student loan interest paid o 1099-B, showing a short-term stock sale and a long-term stock sale 1098, showing mortgage interest on her personal home Sue paid $1,200 for real estate taxes on her personal home. Sue donated cash to a qualifying charity. She gave the American Red Cross $2,500 cash on 12/24/2020 Sue had to pay some out-of-pocket medical expenses during 2020. She paid $1,000 for prescription drugs and $500 for doctor visits Sue just started her own side business during 2020. She operated a sole proprietorship business that provides computer system design services. This is a small, cash-basis business. She does not have any sort of inventory. She does the work oW-2 . . the fan in hama deduction horguen cho doce not have a place in her home nico . Sue had to pay some out-of-pocket medical expenses during 2020. She paid $1,000 for prescription drugs and SDUU for doctor visits Sue just started her own side business during 2020. She operated a sole proprietorship business that provides computer system design services. This is a small, cash-basis business. She does not have any sort of inventory. She does the work from her home, but she is not eligible for the office in home deduction because she does not have a place in her home used exclusively for this business activity. During 2020, she received $6,500 in total revenue (all cash income, she does not trust clients enough yet to use accounts receivable). She paid the following expenses associated with the sole proprietorship: advertising expense of $2,300, office expense of $3,100, and legal professional expense of $850 Sue also owns rental property. She has a commercial warehouse (located at 100 South Street, Statesboro, GA 30458) that she rents to the local newspaper. She has 100% ownership of the building. The building is 100% rental use and she rented it 365 days at FMV during the year. She has a property manager that handles all matters for her related to the building. She placed in the building in service on 2/5/2018. The building cost $200,000 and the land cost $100,000. During 2020, she received $12,000 in total rental revenue. She paid the following expenses associated with the rental property: advertising expense of $500, commission expense of $1,200, and cleaning expense of $300. (Hint: Do not forget to enter the correct data in the software for it to calculate depreciation. This was discussed in the video). Hints (some of these items are discussed in the video): When you initially start the tax return, after entering the taxpayer's SSN, choose the Basic (no profilo) option When entering a W-2 or other tax document, if you enter the EIN (entity identification number) and another company name "auto-lits just manually type over it and change it For any EIN on the tax documents with XXXX, just be creative and enter your own numbers. For the stock sales, be sure to use the drop-down menu to correctly choose "stock basis reported to the IRS or "stock basis not reported to the IRS' as discussed in the video For the rental property, choose the depreciation method MACRS 39 YR property and double check that it calculated depreciation on your Schedule E. You can leave the "useful life' field blank since you are choosing the depreciation method. Make sure you 'Save and Exit when you leave your tax retum in Practice Lab, so you do not lose any of your work. Toinetart early to plan for possible questions or technical issues . . . . . HINts some of these items are discussed in the video! When you initially start the tax return, after entering the taxpayer's SSN, choose the Basic (no profile) option When entering a W-2 or other tax document, you enter the EIN (entily identification number) and another company name "auto-fills just manually type over it and change it For any EIN on the tax documents with XXXX just be creative and enter your own numbers. For the stock sales, be sure to use the drop-down menu to correctly choose "stock bass reported to the IRS or "stock basis not reported to the IRS' as discussed in the video For the rental property, choose the depreciation method MACRS 39 YR property and double check that it calculated depreciation on your Schedule E. You can leave the useful life field blank since you are choosing the depreciation method Make sure you "Save and Exit" when you leave your tax return Practice Lab, so you do not lose any of your work Try to start early to plan for possible questions or technical issues Check figures: AGI- $40,308 Taxable income = $21045 Refund = $4,320 . . . . . Tax Return Details: You are preparing a 2020 Federal Income Tax Retum for Sue Smith. You are not preparing a state tax return. She does not want to e-file. She wants to file a paper tax return. if she is expected to receive a refund, she does not want to direct deposit the refund. She will be patient and wait on a paper refund check to come in the mail. Sue Smith works as an IT Analyst. Her SSN is provided on her W-2. Sue's date of birth is 8/4/1974 and her phone number is (912) 555-5555. Sue is not married. Sue has a daughter who lived with her all year, Katie Smith, who she claims as a dependent. Katie's date of birth is 3/21/2017. Katie is a U.S. citizen, and her SSN is 251-00-9900 Sue's employer pays all of her health insurance premiums as an employee benefit, so Sue did not purchase health insurance from a state marketplace or healthcare.gov Sue has provided you with the following documents related to her 2020 tax return (see attached): o 1099-INT, showing interest income from a savings account at a bank o 1098-E, showing her student loan interest paid o 1099-B, showing a short-term stock sale and a long-term stock sale 1098, showing mortgage interest on her personal home Sue paid $1,200 for real estate taxes on her personal home. Sue donated cash to a qualifying charity. She gave the American Red Cross $2,500 cash on 12/24/2020 Sue had to pay some out-of-pocket medical expenses during 2020. She paid $1,000 for prescription drugs and $500 for doctor visits Sue just started her own side business during 2020. She operated a sole proprietorship business that provides computer system design services. This is a small, cash-basis business. She does not have any sort of inventory. She does the work oW-2 . . the fan in hama deduction horguen cho doce not have a place in her home nico . Sue had to pay some out-of-pocket medical expenses during 2020. She paid $1,000 for prescription drugs and SDUU for doctor visits Sue just started her own side business during 2020. She operated a sole proprietorship business that provides computer system design services. This is a small, cash-basis business. She does not have any sort of inventory. She does the work from her home, but she is not eligible for the office in home deduction because she does not have a place in her home used exclusively for this business activity. During 2020, she received $6,500 in total revenue (all cash income, she does not trust clients enough yet to use accounts receivable). She paid the following expenses associated with the sole proprietorship: advertising expense of $2,300, office expense of $3,100, and legal professional expense of $850 Sue also owns rental property. She has a commercial warehouse (located at 100 South Street, Statesboro, GA 30458) that she rents to the local newspaper. She has 100% ownership of the building. The building is 100% rental use and she rented it 365 days at FMV during the year. She has a property manager that handles all matters for her related to the building. She placed in the building in service on 2/5/2018. The building cost $200,000 and the land cost $100,000. During 2020, she received $12,000 in total rental revenue. She paid the following expenses associated with the rental property: advertising expense of $500, commission expense of $1,200, and cleaning expense of $300. (Hint: Do not forget to enter the correct data in the software for it to calculate depreciation. This was discussed in the video). Hints (some of these items are discussed in the video): When you initially start the tax return, after entering the taxpayer's SSN, choose the Basic (no profilo) option When entering a W-2 or other tax document, if you enter the EIN (entity identification number) and another company name "auto-lits just manually type over it and change it For any EIN on the tax documents with XXXX, just be creative and enter your own numbers. For the stock sales, be sure to use the drop-down menu to correctly choose "stock basis reported to the IRS or "stock basis not reported to the IRS' as discussed in the video For the rental property, choose the depreciation method MACRS 39 YR property and double check that it calculated depreciation on your Schedule E. You can leave the "useful life' field blank since you are choosing the depreciation method. Make sure you 'Save and Exit when you leave your tax retum in Practice Lab, so you do not lose any of your work. Toinetart early to plan for possible questions or technical issues . . . . . HINts some of these items are discussed in the video! When you initially start the tax return, after entering the taxpayer's SSN, choose the Basic (no profile) option When entering a W-2 or other tax document, you enter the EIN (entily identification number) and another company name "auto-fills just manually type over it and change it For any EIN on the tax documents with XXXX just be creative and enter your own numbers. For the stock sales, be sure to use the drop-down menu to correctly choose "stock bass reported to the IRS or "stock basis not reported to the IRS' as discussed in the video For the rental property, choose the depreciation method MACRS 39 YR property and double check that it calculated depreciation on your Schedule E. You can leave the useful life field blank since you are choosing the depreciation method Make sure you "Save and Exit" when you leave your tax return Practice Lab, so you do not lose any of your work Try to start early to plan for possible questions or technical issues Check figures: AGI- $40,308 Taxable income = $21045 Refund = $4,320