Tax Return Problem - Individual Tax Instructions: Please complete the 2019 federal income tax return for Joseph and Diana Cohen. requirement to attach the form(s) W-2 to the front page of the Form 1040. If req missing, use reasonable assumptions to fill in the gaps. Joseph and Diana Cohen live in Pleasantville, New Jersey. Joseph is the Vice-Presic start-up company. Diana is a former advertising executive who currently consults She also serves on the board of directors of an advertising company. The Cohenst Rebecca (age 18), Alan (age 15), and David (age 12). In January, Rebecca left home arts college. All three children qualify as Joseph and Diana's federal income tax der plan to file a joint tax return. The Cohens provided the following information: Joseph's social security number is 598-94-2583 Diana's social security number is 301-52-2942 Rebecca's social security number is 887-44-8710 . Joseph and Diana Cohen live in Pleasantville, New Jersey. Joseph is the Vice-Preside start-up company. Diana is a former advertising executive who currently consults w She also serves on the board of directors of an advertising company. The Cohens ha Rebecca (age 18), Alan (age 15), and David (age 12). In January, Rebecca left home to arts college. All three children qualify as Joseph and Diana's federal income tax depe plan to file a joint tax return. The Cohens provided the following information: Joseph's social security number 598-94-2583 Diana's social security number is 301-52-2942 Rebecca's social security number is 887-44-8710 Alan's social security number is 810-42-9092 David's social security number is 855-11-3021 The Cohen's mailing address is 85 North Maple Drive, Pleasantville, New Jers . . Joseph Cohen reported the following the following information relating to his emplo year: 1.5 Joseph Cohen reported the following the following information relating to his employment during t year: Employer Gross Wages Federal Income Tax Withholding $25,230 State Income Ta. Withholding $8,900 Alternative Energy $158,325 The above amounts do not reflect any income items described below. Joseph's employer withheld payroll taxes it was required to withhold. The entire Cohen family was covered by minimum essenti health insurance during each month in 2019. The insurance was provided by Joseph's employer, Alternative Energy. Diana Cohen received the following revenue during the year (she uses the cash method of accountin Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen's Health Products $8,500 Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen's Health Products $8,500 Strategic Solutions $3,750 Board of director compensation reported to her on a Form 1099-MISC, Box Natural Sunshine, Inc. $6,500 h of these self-employ ent endeavors, Diana an active participant, and both Hered specified service trades or businesses for purposes of the Qualified Busin ction. Assume both activities qualify as a trade or business. 174% GET During the year, Diana paid the following business expenses for each activity: Consultant-related: Airfare Hotel Meals Parking $2,900 $1,450 $390 $320 Diana drove 290 business miles for her consulting-related activities (she has docum Board of Director-related: Meals Hotel $124 $225 Diana drove 315 business miles for her board of director activities (she has documer Neither of Diana's business activities required the filing of Form(s) 1099 to repor during the tax year. In addition, Ms. Cohen drove a 2017 Lexus purchased on Jar business mileage. She drove the vehicle a total of 10,605 miles during the year fe has written documentation to support the mileage amounts. She also has access personal purposes. The Cohens also received the following during the year: $320 $200 $350 $400 Interest income from First Bank of New Jersey Interest income from Patterson, New Jersey School District Interest income from U.S. Treasury Bond Interest income from General Mills corporate bond Interest income from the State of Maine's Tourism Support Private Activity Bond Qualified dividend income from Rio Tinto Qualified dividend income from Microsoft Qualified dividend income from Cooper Tire $50,000 $1,500 $750 $200 2 74 174% Qualified dividend income from Rio Tinto Qualified dividend income from Microsoft Qualified dividend income from Cooper Tire Qualified dividend income from Cardinal Health Qualified dividend income from Union Pacific Qualified dividend income from Procter & Gamble Qualified dividend income from PepsiCo Qualified dividend income from Kellogg Qualified dividend income from Abbott Labs Qualified dividend income from 3M Dividend income (not qualified) from China Fund $1,500 $750 $200 $425 $140 $190 $225 $200 $275 $350 $2,000 The Cohens did not own, control or manage any foreign bank accounts, nor beneficiaries of a foreign trust during the tax year. 3 / 4 174% LED Sold 2,000 shares of Microsoft Sold 75 shares of Apple, Inc. Sold 350 shares of Cooper Tire Sold 1,000 shares of Cardinal Health Sold 50 shares of Union Pacific Purchased 100 shares of Procter & Gamble Purchased 350 shares of Cooper Tire Purchased 350 shares of PepsiCo Purchased 300 shares of Kellogg 7/1/19 4/15/19 10/14/19 9/3/19 1/7/19 7/10/19 11/1/19 5/14/19 10/14/19 $22,500 $28,750 $14,700 $35,000 $2,750 $7,700 $14,000 $32,000 $21,000 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 2,000 shares of Microsoft on 5/1/19 for $21,000 Purchased 200 shares of Apple, Inc. on 3/8/17 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/16 for $9,000 Purchased 50 shares of Cooper Tire on 6/28/19 for $2,000 Received 1,000 shares of Cardinal Health from Diana's father as a gift on 10/10/03. Her father's Relevant tax basis/holding period information related to sales of securities in the curr Purchased 2,000 shares of Microsoft on 5/1/19 for $21,000 Purchased 200 shares of Apple, Inc. on 3/8/17 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/16 for $9,000 Purchased 50 shares of Cooper Tire on 6/28/19 for $2,000 Received 1,000 shares of Cardinal Health from Diana's father as a gift on 10/10/03. H the stock at the time of the gift was $7,000. Fair market value of the stock at the date $41,000 Purchased 100 shares of Union Pacific on 9/5/18 for $6,000 The Cohens have a $43,000 long-term capital loss carryover from the prior tax year. The Cohens received a New Jersey state income tax refund of $400 in May of 2019. TI received the refund because they had overpaid their New Jersey state individual incon their 2018 Federal income tax return, the Cohens itemized, and deducted and received all state tax income taxes paid in 2018. 3/4 174% the stock at the time of the gift was $7,000. Fair market value of the stock at the date of the gift was $41,000 Purchased 100 shares of Union Pacific on 9/5/18 for $6,000 The Cohens have a $43,000 long-term capital loss carryover from the prior tax year. The Cohens received a New Jersey state income tax refund of $400 in May of 2019. The Cohens received the refund because they had overpaid their New Jersey state individual income tax in 2018. On their 2018 Federal income tax return, the Cohens itemized, and deducted and received a tax benefit for all state tax income taxes paid in 2018. Diana is a 10% owner in an advertising agency named Bright Ideas (BI") (EIN 20-1234567). Bl is a Subchapter S corporation located at 4700 MM Lane, West Rockport, ME 04865. The company reported ordinary business income for the year of $150,000. Diana received a K-1 from Bl reporting her allocation of this business income. Diana acquired the stock several years ago. Her basis in the stock before considering her 2019 income allocation was $92,000. Diana is a passive owner with respect to this entity, and all her investment is at risk. Diana received no distribution from Bl in 2019. Bl is a specified service business for purposes of the Qualified Business Income Deduction, generating $150,000 of 3 / 4 174% Supchapters corporation iocated at 4700 VIIVI Lane, west Rockport, IVE 04865. Tne compan ordinary business income for the year of $150,000. Diana received a K-1 from Bl reporting he of this business income. Diana acquired the stock several years ago. Her basis in the stock be considering her 2019 income allocation was $92,000. Diana is a passive owner with respect t entity, and all her investment is at risk. Diana received no distribution from Bl in 2019. Bl is a service business for purposes of the Qualified Business Income Deduction, generating $150,0 Qualified Business Income and paying $50,000 in W-2 wages to its non-shareholder employee Diana is also a 20% owner in Natural Sunshine, Inc. ("NS") (EIN 24-9876543). NS is a Subchap corporation located at 6488 WYWH Dr, Islamorada, FL 33036. The company reported an ordi business loss for the year of ($80,000). Diana received a K-1 from NS reporting her allocation business loss. Diana acquired the stock several years ago. Her basis in the stock before consic 2019 loss allocation was $45,000. Diana is a passive owner with respect to this entity. NS is ne specified service business for purposes of the Qualified Business Income Deduction. The Cohens paid the following expenses during the year: Dentist (unreimbursed by insurance) Doctors (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) Real property taxes on residence Vehicle (not used for business) property tax based upon value Mortgage interest on principal residence mortgage of $600,000 Home equity interest on $40,000 mortgage used to purchase new car Contribution to United Way Contribution to American Cancer Society Contribution to neighborhood drive to oppose development project $1,500 $ 2,425 $ 675 $7,525 $2,250 $20,550 $3,600 $5,000 $7,000 $500 E IIICUT 174% COD UITO CY Yuva Contribution to neighborhood drive to oppose development project Contribution to the Temple Mount Synagogue $500 $15,000 The Cohens also donated clothing, electronics, furniture and other household goods to Army of Pleasantville, New Jersey on April 15, 2019. Estimated thrift value of the goods $375. Miscellaneous Information On September 1, the Cohens paid $200 in foreign taxes attributable to the dividend rece China Fund. The Cohens would like to contribute to the Presidential Election Campaign Fund. The Co like to receive a refund (if any) of tax they may have overpaid for the year. Their preferre receiving the refund is by check. Tax Return Problem - Individual Tax Instructions: Please complete the 2019 federal income tax return for Joseph and Diana Cohen. requirement to attach the form(s) W-2 to the front page of the Form 1040. If req missing, use reasonable assumptions to fill in the gaps. Joseph and Diana Cohen live in Pleasantville, New Jersey. Joseph is the Vice-Presic start-up company. Diana is a former advertising executive who currently consults She also serves on the board of directors of an advertising company. The Cohenst Rebecca (age 18), Alan (age 15), and David (age 12). In January, Rebecca left home arts college. All three children qualify as Joseph and Diana's federal income tax der plan to file a joint tax return. The Cohens provided the following information: Joseph's social security number is 598-94-2583 Diana's social security number is 301-52-2942 Rebecca's social security number is 887-44-8710 . Joseph and Diana Cohen live in Pleasantville, New Jersey. Joseph is the Vice-Preside start-up company. Diana is a former advertising executive who currently consults w She also serves on the board of directors of an advertising company. The Cohens ha Rebecca (age 18), Alan (age 15), and David (age 12). In January, Rebecca left home to arts college. All three children qualify as Joseph and Diana's federal income tax depe plan to file a joint tax return. The Cohens provided the following information: Joseph's social security number 598-94-2583 Diana's social security number is 301-52-2942 Rebecca's social security number is 887-44-8710 Alan's social security number is 810-42-9092 David's social security number is 855-11-3021 The Cohen's mailing address is 85 North Maple Drive, Pleasantville, New Jers . . Joseph Cohen reported the following the following information relating to his emplo year: 1.5 Joseph Cohen reported the following the following information relating to his employment during t year: Employer Gross Wages Federal Income Tax Withholding $25,230 State Income Ta. Withholding $8,900 Alternative Energy $158,325 The above amounts do not reflect any income items described below. Joseph's employer withheld payroll taxes it was required to withhold. The entire Cohen family was covered by minimum essenti health insurance during each month in 2019. The insurance was provided by Joseph's employer, Alternative Energy. Diana Cohen received the following revenue during the year (she uses the cash method of accountin Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen's Health Products $8,500 Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen's Health Products $8,500 Strategic Solutions $3,750 Board of director compensation reported to her on a Form 1099-MISC, Box Natural Sunshine, Inc. $6,500 h of these self-employ ent endeavors, Diana an active participant, and both Hered specified service trades or businesses for purposes of the Qualified Busin ction. Assume both activities qualify as a trade or business. 174% GET During the year, Diana paid the following business expenses for each activity: Consultant-related: Airfare Hotel Meals Parking $2,900 $1,450 $390 $320 Diana drove 290 business miles for her consulting-related activities (she has docum Board of Director-related: Meals Hotel $124 $225 Diana drove 315 business miles for her board of director activities (she has documer Neither of Diana's business activities required the filing of Form(s) 1099 to repor during the tax year. In addition, Ms. Cohen drove a 2017 Lexus purchased on Jar business mileage. She drove the vehicle a total of 10,605 miles during the year fe has written documentation to support the mileage amounts. She also has access personal purposes. The Cohens also received the following during the year: $320 $200 $350 $400 Interest income from First Bank of New Jersey Interest income from Patterson, New Jersey School District Interest income from U.S. Treasury Bond Interest income from General Mills corporate bond Interest income from the State of Maine's Tourism Support Private Activity Bond Qualified dividend income from Rio Tinto Qualified dividend income from Microsoft Qualified dividend income from Cooper Tire $50,000 $1,500 $750 $200 2 74 174% Qualified dividend income from Rio Tinto Qualified dividend income from Microsoft Qualified dividend income from Cooper Tire Qualified dividend income from Cardinal Health Qualified dividend income from Union Pacific Qualified dividend income from Procter & Gamble Qualified dividend income from PepsiCo Qualified dividend income from Kellogg Qualified dividend income from Abbott Labs Qualified dividend income from 3M Dividend income (not qualified) from China Fund $1,500 $750 $200 $425 $140 $190 $225 $200 $275 $350 $2,000 The Cohens did not own, control or manage any foreign bank accounts, nor beneficiaries of a foreign trust during the tax year. 3 / 4 174% LED Sold 2,000 shares of Microsoft Sold 75 shares of Apple, Inc. Sold 350 shares of Cooper Tire Sold 1,000 shares of Cardinal Health Sold 50 shares of Union Pacific Purchased 100 shares of Procter & Gamble Purchased 350 shares of Cooper Tire Purchased 350 shares of PepsiCo Purchased 300 shares of Kellogg 7/1/19 4/15/19 10/14/19 9/3/19 1/7/19 7/10/19 11/1/19 5/14/19 10/14/19 $22,500 $28,750 $14,700 $35,000 $2,750 $7,700 $14,000 $32,000 $21,000 Relevant tax basis/holding period information related to sales of securities in the current year: Purchased 2,000 shares of Microsoft on 5/1/19 for $21,000 Purchased 200 shares of Apple, Inc. on 3/8/17 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/16 for $9,000 Purchased 50 shares of Cooper Tire on 6/28/19 for $2,000 Received 1,000 shares of Cardinal Health from Diana's father as a gift on 10/10/03. Her father's Relevant tax basis/holding period information related to sales of securities in the curr Purchased 2,000 shares of Microsoft on 5/1/19 for $21,000 Purchased 200 shares of Apple, Inc. on 3/8/17 for $90,000 Purchased 300 shares of Cooper Tire on 1/12/16 for $9,000 Purchased 50 shares of Cooper Tire on 6/28/19 for $2,000 Received 1,000 shares of Cardinal Health from Diana's father as a gift on 10/10/03. H the stock at the time of the gift was $7,000. Fair market value of the stock at the date $41,000 Purchased 100 shares of Union Pacific on 9/5/18 for $6,000 The Cohens have a $43,000 long-term capital loss carryover from the prior tax year. The Cohens received a New Jersey state income tax refund of $400 in May of 2019. TI received the refund because they had overpaid their New Jersey state individual incon their 2018 Federal income tax return, the Cohens itemized, and deducted and received all state tax income taxes paid in 2018. 3/4 174% the stock at the time of the gift was $7,000. Fair market value of the stock at the date of the gift was $41,000 Purchased 100 shares of Union Pacific on 9/5/18 for $6,000 The Cohens have a $43,000 long-term capital loss carryover from the prior tax year. The Cohens received a New Jersey state income tax refund of $400 in May of 2019. The Cohens received the refund because they had overpaid their New Jersey state individual income tax in 2018. On their 2018 Federal income tax return, the Cohens itemized, and deducted and received a tax benefit for all state tax income taxes paid in 2018. Diana is a 10% owner in an advertising agency named Bright Ideas (BI") (EIN 20-1234567). Bl is a Subchapter S corporation located at 4700 MM Lane, West Rockport, ME 04865. The company reported ordinary business income for the year of $150,000. Diana received a K-1 from Bl reporting her allocation of this business income. Diana acquired the stock several years ago. Her basis in the stock before considering her 2019 income allocation was $92,000. Diana is a passive owner with respect to this entity, and all her investment is at risk. Diana received no distribution from Bl in 2019. Bl is a specified service business for purposes of the Qualified Business Income Deduction, generating $150,000 of 3 / 4 174% Supchapters corporation iocated at 4700 VIIVI Lane, west Rockport, IVE 04865. Tne compan ordinary business income for the year of $150,000. Diana received a K-1 from Bl reporting he of this business income. Diana acquired the stock several years ago. Her basis in the stock be considering her 2019 income allocation was $92,000. Diana is a passive owner with respect t entity, and all her investment is at risk. Diana received no distribution from Bl in 2019. Bl is a service business for purposes of the Qualified Business Income Deduction, generating $150,0 Qualified Business Income and paying $50,000 in W-2 wages to its non-shareholder employee Diana is also a 20% owner in Natural Sunshine, Inc. ("NS") (EIN 24-9876543). NS is a Subchap corporation located at 6488 WYWH Dr, Islamorada, FL 33036. The company reported an ordi business loss for the year of ($80,000). Diana received a K-1 from NS reporting her allocation business loss. Diana acquired the stock several years ago. Her basis in the stock before consic 2019 loss allocation was $45,000. Diana is a passive owner with respect to this entity. NS is ne specified service business for purposes of the Qualified Business Income Deduction. The Cohens paid the following expenses during the year: Dentist (unreimbursed by insurance) Doctors (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) Real property taxes on residence Vehicle (not used for business) property tax based upon value Mortgage interest on principal residence mortgage of $600,000 Home equity interest on $40,000 mortgage used to purchase new car Contribution to United Way Contribution to American Cancer Society Contribution to neighborhood drive to oppose development project $1,500 $ 2,425 $ 675 $7,525 $2,250 $20,550 $3,600 $5,000 $7,000 $500 E IIICUT 174% COD UITO CY Yuva Contribution to neighborhood drive to oppose development project Contribution to the Temple Mount Synagogue $500 $15,000 The Cohens also donated clothing, electronics, furniture and other household goods to Army of Pleasantville, New Jersey on April 15, 2019. Estimated thrift value of the goods $375. Miscellaneous Information On September 1, the Cohens paid $200 in foreign taxes attributable to the dividend rece China Fund. The Cohens would like to contribute to the Presidential Election Campaign Fund. The Co like to receive a refund (if any) of tax they may have overpaid for the year. Their preferre receiving the refund is by check