Tax Return question

Please complete the required 2019 federal individual income tax return for the following taxpayer. You must complete the forms neatly by hand. You may not use any tax return preparation software. You can access links to the forms on Blackboard under "External Links", or you can access the forms from the Internal Revenue Service website at irs.gov. You will need to complete Form 1040, pages 1 and 2, Schedule B, and Schedule C (first page only). If you conclude that the taxpayer should itemize deductions, then also complete Schedule A, Itemized Deductions. Ignore tax credits and alternative minimum tax calculations as we have not covered that material in class yet, ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Also: Please round all tax return entries to the nearest dollar. Please use the tax rate schedule at the back of your text to calculate any tax liability. AGI should equal $55,527, and total tax on line 16 should equal $4,461. Jane Kirk, age 49, lives in Any Town, Missouri. Jane's father, Leonard Spock, lives in his own home near his daughter's home. Leonard's gross income for the year is $3,000, and Jane provided more than half of his support for the year. The following information relates to Jane's tax year: Jane's Social Security number is XXX-45-1234. Leonard's Social Security number is XXX-37-4893. Jane's mailing address is 123 Bear Drive, Any Town, Missouri 65897. Jane Kirk received the following Form W-2 with information regarding her wages during the year: a Employee's social security number 22222 OX-45-1234 b Employer identification number (EIN c Employer's name, address, and ZIP code OMB No 1545-0008 1 Wages, tips, other compensation $50,000.00 3 Social security wages $50,000.00 5 Medicare wages and tips $50,000.00 7 Social security tips 2 Federal income tax withheld $6,000.00 4 Social security tax withheld $3,100.00 6 Medicare tax withheld $725.00 8 Alocated tips XYZ Publisher 555 University Ave. Anytown, MO 65897 d Control number 10 Dependent care benefits Employee's first name and initial Last name Suft. 11 Nonqualified plans Jane Kirk 123 Bear Drive Anytown, MO 65897 14 Other 1 Employee's address and ZIP code 15 Scale Employer's state ID number 18 Local wages, tips, etc. 19 Local income tax 20 Locality 16 State woes.tips, etc. 17 State income tax $50,000.00 $3,000.00 Department of the Treasury-Internal Revenue Service W .2 Wage and Tax Form VVZ Statement Copy 1-For State, City, or Local Tax Department 2019 All applicable and appropriate payroll taxes were withheld by Jane's employer. Later in the tax year, Jane decided to quit her job and become self-employed as a freelance copy editor. For tax year 2019 Jane had the following income and expenses related to her sole proprietorship: Sales revenue (see Forms 1099 below) $3,000 Internet access $500 Office supplies $200 Jane will owe $325 in self-employment tax, of which, $163 is the employer portion. Jane uses the cash method of accounting, and she materially participated in this business. VOID CORRECTED PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. OMB No 1545-0115 2019 Miscellaneous Income 2 Royalties Professor Able 444 Manuscript Way Anytown, MO 65897 Form 1099-MISC 4 Federal income tax withheld 3 Other income PAYER'S TIN RECIPIENT'S TIN S Fishing boat proceeds 6 Medical and health care payments Copy1 For State Tax Department XXX-45-1234 RECIPIENTS name 7 Nonemployee compensation 8 Substitute payments in lieu of dividends or interest Jane Kirk $1,700.00 Street address including apl. no.) 10 Crop Insurance proceeds 123 Bear Drive City or town, state or province, country, and ZIP or foreign postal code 9 Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient for resale Anytown, MO 65897 Account number (see instructions FATCA filing requirement 13 Excess golden parachute payments 14 Gross proceeds paid to an attomey 15a Section 409A deferrals 15b Section 409A income 16 State tax withheld 17 State/Payer's state no. 18 State income Form 1099-MISC www.lrs.gow Form 1099MISC Department of the Treasury - Internal Revenue Service VOID CORRECTED PAYER'S name, street address, city or town, state or province, country, 1 Rants or foreign postal code, and telephone no. OMB No 1545-0115 2019 Miscellaneous Income 2 Royalties Professor Best 500 Manuscript Way Anytown, MO 65897 Form 1099-MISC 4 Federal income tax wild PAYER'S TIN RECIPIENTS TIN 5 Fishing boat proceeds Medical and health care parts Copy 1 For State Tax Department XXX-45-1234 RECIPIENT'S name 7 Nonemployee compensation 8 Substitute payments in lieu of dividends or interest Jane Kirk Street address including apt, no.) $1,300.00 123 Bear Drive City or town, state or province, country, and ZIP or foreign postal code 9 Payer made direct sales of 10 Crop insurance proceeds $5,000 or more of consumer products to a buyer recent for rese JIS Anytown, MO 65897 Account number (see instructions) FATCA titing requirement 13 Excess golden parachute payments 14 Gross proceeds paid to an 15a Section 409A deferrals 15 Section 409A income 16 Statelax withheld 17 State/Payer's staten Form 1099-MISC www.lrs.gowForm 10GSMISC Department of the Treasury - Internal Revenue Service Jane Kirk also received the following during the year: Interest income from Missouri State Bank $90 Interest income from City of Any Town, MO Bond $350 Interest income from U.S. Treasury Bond $700 Worker's compensation $4,250 Disability payments received on account of injury $3,600 Jane's employer paid 100% of the premiums on the policy and included the premium payments in Jane's taxable wages. Gambling winnings $100 Receipt of payment as a result of a lawsuit for damages sustained in a car accident: o Medical Expenses $3,000 O Emotional Distress $ 10,500 o Punitive Damages $11,000 Total $24,500 Jane did not own, control or manage any foreign bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year. Jane Kirk paid the following expenses during the year: Dentist/Orthodontist (unreimbursed by insurance) Doctors (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) $1,550 $ 675 $ 390 Real property tax on residence Vehicle (personal) property tax based upon value of cars Mortgage interest on principal residence Contribution to Red Cross Contribution to state senator re-election campaign Contribution to First Methodist Church of Any Town Contribution to financially struggling neighbor $1,200 $ 400 $5,000 $ 500 $ 600 $4,000 $ 250 Jane also paid $2,600 in student loan interest during the year on a qualified education loan. Jane drove 500 miles in total to receive medical treatment at a hospital in March Jane would like to contribute the maximum deductible contribution to her IRA account. She does not participate in an employer sponsored retirement plan. Jane wants to contribute to the Presidential Election Campaign. She would like to receive a refund (if any) of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check. Please complete the required 2019 federal individual income tax return for the following taxpayer. You must complete the forms neatly by hand. You may not use any tax return preparation software. You can access links to the forms on Blackboard under "External Links", or you can access the forms from the Internal Revenue Service website at irs.gov. You will need to complete Form 1040, pages 1 and 2, Schedule B, and Schedule C (first page only). If you conclude that the taxpayer should itemize deductions, then also complete Schedule A, Itemized Deductions. Ignore tax credits and alternative minimum tax calculations as we have not covered that material in class yet, ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Also: Please round all tax return entries to the nearest dollar. Please use the tax rate schedule at the back of your text to calculate any tax liability. AGI should equal $55,527, and total tax on line 16 should equal $4,461. Jane Kirk, age 49, lives in Any Town, Missouri. Jane's father, Leonard Spock, lives in his own home near his daughter's home. Leonard's gross income for the year is $3,000, and Jane provided more than half of his support for the year. The following information relates to Jane's tax year: Jane's Social Security number is XXX-45-1234. Leonard's Social Security number is XXX-37-4893. Jane's mailing address is 123 Bear Drive, Any Town, Missouri 65897. Jane Kirk received the following Form W-2 with information regarding her wages during the year: a Employee's social security number 22222 OX-45-1234 b Employer identification number (EIN c Employer's name, address, and ZIP code OMB No 1545-0008 1 Wages, tips, other compensation $50,000.00 3 Social security wages $50,000.00 5 Medicare wages and tips $50,000.00 7 Social security tips 2 Federal income tax withheld $6,000.00 4 Social security tax withheld $3,100.00 6 Medicare tax withheld $725.00 8 Alocated tips XYZ Publisher 555 University Ave. Anytown, MO 65897 d Control number 10 Dependent care benefits Employee's first name and initial Last name Suft. 11 Nonqualified plans Jane Kirk 123 Bear Drive Anytown, MO 65897 14 Other 1 Employee's address and ZIP code 15 Scale Employer's state ID number 18 Local wages, tips, etc. 19 Local income tax 20 Locality 16 State woes.tips, etc. 17 State income tax $50,000.00 $3,000.00 Department of the Treasury-Internal Revenue Service W .2 Wage and Tax Form VVZ Statement Copy 1-For State, City, or Local Tax Department 2019 All applicable and appropriate payroll taxes were withheld by Jane's employer. Later in the tax year, Jane decided to quit her job and become self-employed as a freelance copy editor. For tax year 2019 Jane had the following income and expenses related to her sole proprietorship: Sales revenue (see Forms 1099 below) $3,000 Internet access $500 Office supplies $200 Jane will owe $325 in self-employment tax, of which, $163 is the employer portion. Jane uses the cash method of accounting, and she materially participated in this business. VOID CORRECTED PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. OMB No 1545-0115 2019 Miscellaneous Income 2 Royalties Professor Able 444 Manuscript Way Anytown, MO 65897 Form 1099-MISC 4 Federal income tax withheld 3 Other income PAYER'S TIN RECIPIENT'S TIN S Fishing boat proceeds 6 Medical and health care payments Copy1 For State Tax Department XXX-45-1234 RECIPIENTS name 7 Nonemployee compensation 8 Substitute payments in lieu of dividends or interest Jane Kirk $1,700.00 Street address including apl. no.) 10 Crop Insurance proceeds 123 Bear Drive City or town, state or province, country, and ZIP or foreign postal code 9 Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient for resale Anytown, MO 65897 Account number (see instructions FATCA filing requirement 13 Excess golden parachute payments 14 Gross proceeds paid to an attomey 15a Section 409A deferrals 15b Section 409A income 16 State tax withheld 17 State/Payer's state no. 18 State income Form 1099-MISC www.lrs.gow Form 1099MISC Department of the Treasury - Internal Revenue Service VOID CORRECTED PAYER'S name, street address, city or town, state or province, country, 1 Rants or foreign postal code, and telephone no. OMB No 1545-0115 2019 Miscellaneous Income 2 Royalties Professor Best 500 Manuscript Way Anytown, MO 65897 Form 1099-MISC 4 Federal income tax wild PAYER'S TIN RECIPIENTS TIN 5 Fishing boat proceeds Medical and health care parts Copy 1 For State Tax Department XXX-45-1234 RECIPIENT'S name 7 Nonemployee compensation 8 Substitute payments in lieu of dividends or interest Jane Kirk Street address including apt, no.) $1,300.00 123 Bear Drive City or town, state or province, country, and ZIP or foreign postal code 9 Payer made direct sales of 10 Crop insurance proceeds $5,000 or more of consumer products to a buyer recent for rese JIS Anytown, MO 65897 Account number (see instructions) FATCA titing requirement 13 Excess golden parachute payments 14 Gross proceeds paid to an 15a Section 409A deferrals 15 Section 409A income 16 Statelax withheld 17 State/Payer's staten Form 1099-MISC www.lrs.gowForm 10GSMISC Department of the Treasury - Internal Revenue Service Jane Kirk also received the following during the year: Interest income from Missouri State Bank $90 Interest income from City of Any Town, MO Bond $350 Interest income from U.S. Treasury Bond $700 Worker's compensation $4,250 Disability payments received on account of injury $3,600 Jane's employer paid 100% of the premiums on the policy and included the premium payments in Jane's taxable wages. Gambling winnings $100 Receipt of payment as a result of a lawsuit for damages sustained in a car accident: o Medical Expenses $3,000 O Emotional Distress $ 10,500 o Punitive Damages $11,000 Total $24,500 Jane did not own, control or manage any foreign bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year. Jane Kirk paid the following expenses during the year: Dentist/Orthodontist (unreimbursed by insurance) Doctors (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) $1,550 $ 675 $ 390 Real property tax on residence Vehicle (personal) property tax based upon value of cars Mortgage interest on principal residence Contribution to Red Cross Contribution to state senator re-election campaign Contribution to First Methodist Church of Any Town Contribution to financially struggling neighbor $1,200 $ 400 $5,000 $ 500 $ 600 $4,000 $ 250 Jane also paid $2,600 in student loan interest during the year on a qualified education loan. Jane drove 500 miles in total to receive medical treatment at a hospital in March Jane would like to contribute the maximum deductible contribution to her IRA account. She does not participate in an employer sponsored retirement plan. Jane wants to contribute to the Presidential Election Campaign. She would like to receive a refund (if any) of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check