Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tax return problem I need help doing this, please explain to me how to do it. Thanks a lot Mary Martin is Single. Got divorced

Tax return problem I need help doing this, please explain to me how to do it. Thanks a lot Mary Martin is Single. Got divorced in 2020 - July 1. Got 6 months of alimony - $1500 monthly - from her ex. She extended her due date from 5/17 - we need to prep the tax return for federal purposes. Works at Bank. Makes 40,000. Fed income tax withheld by Employer? $3000. Spent $2000 on nice clothes to wear to work! Takes Uber to work each day - $10 - So spent about $2000 during 2020 to get to work. Has side job as a hairdresser. People come to her house. Made 18,000 in fees charged and got tips of 3,000. Bought some supplies - $500. Bought some equipment - 2,500. Paid for advertising $500. Got a parking ticket - $100 and a speeding ticket $500 while attending a hair cut seminar! She paid the tickets out of her business account! Interest on home mortgage? $1500 a month. Her home- ex owned nothing - in fact they were only married for about 4+ months . Property taxes - $2500 - on the home. State income tax withheld by Bank - $700. Opened a traditional IRA in November and put $2000 into the IRA. Sold 100 shares of stock ABC Corp - Gain $4000. Owned 2 years. Sold 200 shares of XYZ Corp stock - Loss of $8000! Held 3 years. Sold 12/25/20! Before selling these stocks she got $5000 of dividends! All were "qualified dividends!" She also earned $1200 of interest income on a $4000 New York City bond that paid 3% interest! She fell on cracked sidewalk outside the bank. Broke arm....but she could still work. Owners paid her 25,000 for her pain and suffering, and $5000 for her emotional distress. Got paid 12/31/20! Prep her federal tax return for 2020. And tell explain if she owes or will get a refund.

Step by Step Solution

3.50 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

Answer Description Amount Gross income Salary Alimony Received Earning from dividends Inter... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Document Format ( 1 attachment)

Word file Icon
625fea2e5a1c0_99607.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2015

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill

33rd Edition

9781305177772, 128543952X, 1305177770, 978-1285439525

More Books

Students also viewed these Finance questions