Question
(Tax Return)Chance D. Parkman, born April 3, 1988, works at the local high school as a history teacher. On December 30, 2019, he married Destiny
(Tax Return)Chance D. Parkman, born April 3, 1988, works at the local high school as a history teacher. On December 30, 2019, he married Destiny Freebird. Chance and Destiny, with Destiny's three-year-old daughter Grace and Grace's two-year-old best friend Winni live at 1428 Elm Street, Springfield, Ohio. The Parkman's paid mortgage interest of $11,000; they know how much they paid in interest because the mortgage bank sent them a 1098 with their December 31 statement. The 1098 also showed that $6,000 was paid for their property taxes on the house.
During 2019, Chance earned $40,000 in wages and had $3,500 withheld in federal income taxes, and $2,700 in Ohio state income taxes; all items were reported to him on his W-2. He also earned $10 in interest from First Bank of Springfield (IL) on his savings account. This amount was reported to him on his December 2019 bank statement. He had full year health coverage from his employment in the Springfield City School System. Chance would like $3 to go to the Presidential Election Campaign Fund, although he has no idea what that is. Chance also received $7,500 in unemployment compensation while he was not working during the summer break.
He needed a little extra money in the fall to pay some of the wedding deposits, so he withdrew some money from a certificate of deposit he had at the bank. The CD still had two years to go on the term, so the bank charged him an early withdrawal penalty of $85.
Destiny earned wages of $55,000 as an online Interior Design Consultant at Magnolia. During 2019, Destiny had surgery and missed two weeks of work, unpaid. Fortunately, she had chosen to purchase disability insurance through her employer, paid for by funds withheld from her wages, pretax. She received $3,000 in disability benefits. She had $7,000 withheld for federal income taxes and $4,500 withheld for Ohio state income taxes. All relevant items were reported to her on her W-2.
Please prepare Chance and Destiny's 2019 Form 1040 and any required schedules.
The assignment should be assembled in the correct IRS order(highly recommend using the Form 1040 instructions).
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