Taxpayer Facts:

1. Thomas McNeil is employed as an airline pilot for Rocky Mountain Airlines in Denver, CO. Rachel is a self-employed tour guide. They have been married since 1994. Thomas and Rachel live in a home they purchased this year. Thomas and Rachel have three children who live with them all year, Robert (19), Denise (15) and Sara (10). Thomas and Rachel provided the following personal information:
   1. Thomas and Rachel do not want to contribute to the presidential election campaign.
   2. Thomas and Rachel live at 21905 Inspiration Dr., Henderson, CO 80022
   3. Thomass birthday is 10/12/1970 and his Social Security number is 555-55-5551
   4. Rachels birthday is 7/16/1973 and her Social Security number is 444-44-4442
   5. Roberts birthday is 6/30/2000 and his Social Security number is 454-54-5454
   6. Denises birthday is 8/12/2004 and her Social Security number is 343-43-4343
   7. Saras birthday is 5/13/2009 and her Social Security number is 232-32-3232

2. During 2019, Thomas and Rachel received $550 in interest from City of Denver municipal bonds, $1,070 interest from US Treasury bonds, and $65 from their savings account at SCD Credit Union. Thomas and Rachel are joint owners of the City of Denver bonds and the US Treasury bonds. They have a joint savings account at SCD Credit Union. See attached Forms 1099-INT for each.

3. On January 21, 2019, Rachel was involved in a car accident. Because the other driver was at fault, theother drivers insurance company paid Rachel $1,350 for medical expenses

relating to her injuries from the accident and $300 for emotional distress from the accident. She received payment on March 15, 2019.

4. Thomass father died on November 15, 2018. Thomas received a $100,000 death benefit from his fathers life insurance policy on February 8, 2019.

5. Rachel had always wanted to own her own business. In January, she decided to go for it and began devising a business plan. She incurred the following expenses from January 1 through May 31st:

Legal Fees $1,500

Expenses for market analysis $ 975

6. Rachel began business operations on June 1. She earned total gross revenues for the year from her dog training business of $40,000. She uses the cash method of accounting. She was not issued a 1099-MISC or a 1099-K. The total revenues match the bank deposits she made from June 1 to December 31. Rachel is a sole proprietor and reports on the cash basis of accounting. Her business name is Rachel the Ruff Trainer and her office address is: 975 Twisty Pines Ln, Denver, CO 80205. Her business is classified as a pet service with a business code of 812910. The business also qualifies for the QBI deduction and is not considered a specified service trade of business (SSTB).

7. From June 1 to December 31, Rachel incurred the following business operating expenses:

Advertising	$2,500
Insurance Expense	350
Interest Expense from loan	675
Legal/Accounting Exp	1,750
Training space rent	6,000
Supplies	2,925
Meals & Entertainment	500

Rachel did not pay any individuals for services, so she is was not required to issue any 1099-MISC forms for this year.

Rachel owns a Ford Explorer (SUV under 6000 lbs) which she used for business purposes (she first used this SUV for business on June 1, 2019). She chooses to use the standard mileage expense method to account for her auto deduction. The total miles she drove for the year were 14,000. Of the total driven, business mileage was 8,400, and personal miles were 5,600. She keeps a written logbook of all her mileage to document business travel.

Thomas and Rachel also have another vehicle for personal use. The vehicle is primarily used by Rachel who is the sole owner of the business. She would like to elect the standard mileage method for tax purposes. See #17 for property tax paid on the SUV.

Rachel is on Thomas health insurance, so she does not need coverage through her business. She would not like to participate in a marketplace and does not want to elect to use depreciation or code section 179.

8. On May 17, 2019, Thomas and Rachel received a federal income tax refund of $975 from their 2018 federal income tax return.

9. On June 5, 2019, Thomass aunt Beatrice gave Thomas $24,000 because she wanted to let everyone know that Thomas is her favorite nephew.

10. One September 29, 2019, Rachel won a cruise trip valued at $5,000 as a contestant on Jeopardy.

11. Thomas and Rachel have qualifying insurance for the entire family for the purposes of the Affordable Care Act (ACA).

12. Thomas goes gambling with some buddies on New Years Day (January 1, 2019) and wins

$1,500 on a slot machine. However, he did not receive a W-2G for his winnings.

13. Rachel has a girls weekend over Mothers Day (May 11, 2019), but she is not as lucky as Thomas and loses $3,200.

14. Thomas incurred $500 in expenses attending a conference for his employer. His employer has a qualified plan and reimbursed Thomas $475.

15. Thomas and Rachel paid $24,000 in total mortgage expenses in 2019. Within these payments were $2,500 of property tax for the residence and $8,900 in interest expense. See attached Form 1098-MTG issued by their mortgage company.

16. Thomas and Rachel had $4,200 of additional medical expenses in 2019. This does not include the amountsused for injuries where they received reimbursement of their medical bills.

17. Thomas and Rachel own two vehicles. Their Ford Explorer is a 2020 model. They paid

$1,200 to register the Explorer in November of 2019. Of this registration fee, $800 was in ownership tax and $400 was in fees. Rachel did claim this vehicle for business mileage, but she only used it half of the year for business. Their Audi S4 is a 2016 model. They paid $1,400 to register the Audi in 2019. Of that registration fee, $900 was is ownership tax and $500 was in fees. The Audi was not used for business purposes. (Hint: the Explorer is part business part personal. Prorate that tax above by multiplying its tax by 60% [8,400/14,000]).

18. Thomas, who graduated from Metro State University in 1993, is a proud supporter of his Alma mater. He donated cash of $10,500 to their scholarship fund in 2019. The scholarship fund is appropriately classified as a 501(c)(3) non-profit organization.

19. Rachel supports the Denver Dumb Friends league and donated cash of $4,000 to them in 2019. The Denver Dumb Friends League is registered as a non-profit 501(c)(3) organization.

20. Robert is in his second year of college at MSU. He is a full-time student studying accounting. He lived at home and his parents paid his tuition, books, and fees. Tuition, books, and fees costs were $18,000 for the year. His books of $1,100 (included in the $18,000) did not have to be purchased at the MSU bookstore. See attached Form 1098-T.

21. Thomas had $5,724 of Colorado tax withheld on his W-2 for the year.

RS en file Visit the IRS website at www.irs.gov/efile a Employee's social security number 555-55-5551 b Employer identification number (EIN) 91-000102 c Employer's name, address, and ZIP code Rocky Mountain Airlines, Inc. 375 West Flight Blvd. Denver, CO 80011 Safe, accurate, FAST! Use OMB No. 1545-0008 1 Wages, tips, other compensation 123,645 3 Social security wages 118,500 5 Medicare wages and tips 138,645 7 Social security tips 2 Federal income tax withheld 21,000 4 Social security tax withheld 7,347 6 Medicare tax withheld 2,010 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans e Employee's first name and initial Thomas L. McNeil 21905 Inspiration Dr. Henderson, CO 80022 12a See instructions for box 12 D 15,000 12b 13 Statutory employee Retirement plan Third-party sick pay 8 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's state ID number CO 987654321 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 123,645 5,724 W-2 Statement Wage and Tax Department of the Treasury-Internal Revenue Service 2019 Form Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 2019 Interest Income 1 Interest income US Treasury Washington DC 000001 Form 1099-INT $ 2 Early withdrawal penalty Copy B PAYER'S federal identification number RECIPIENT'S identification number $ For Recipient 21-9999999 555-55-5551 3 Interest on U.S. Savings Bonds and Treas, obligations 444-44-4442 1,070.00 $ RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses This is important tax information and is $ $ Thomas & Rachel McNeil being furnished to the 6 Foreign tax paid 7 Foreign country or U.S. possession Internal Revenue Service. If you are Street address (including apt. no.) $ 8 Tax-exempt interest 9 Specified private activity bond return, a negligence 21905 Inspiration Dr. interest sanction may be City or town, state or province, country, and ZIP or foreign postal code $ $ imposed on on you if 10 Market discount 11 Bond premium this income is Henderson, CO 80022 taxable and the IRS determines that it has FATCA filing $ $ not been reported. requirement 12 13 Bond premium on tax-exempt bond $ Account number (see instructions) 14 Tax-exempt and tax credit 15 State 16 State identification no. 17 State tax withheld bond CUSIP no. required to file penalty or other Form 1099-INT (keep for your records) www.irs.gov/form1099int Department of the Treasury - Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 2019 Interest Income SCD Credit Union 21 N South St Denver, CO 80203 1 Interest income 65.00 $ 2 Early withdrawal penalty Form 1099-INT Copy B Service. negligence PAYER'S federal identification number RECIPIENT'S identification number $ For Recipient 21-9999999 555-55-5551 3 Interest on U.S. Savings Bonds and Treas. obligations 444-44-4442 $ This is important tax RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses information and is Thomas & Rachel McNeil $ $ being furnished to the 6 Foreign tax paid 7 Foreign country or U.S. possession Internal Revenue If Street address (including apt. no.) you are $ required to file a 8 Tax-exempt interest 9 Specified private activity bond 21905 Inspiration Dr. return, interest penalty or other sanction may be City or town, state or province, country, and ZIP or foreign postal code $ $ imposed on you if 10 Market discount 11 Bond premium Henderson, CO 80022 this income is taxable and the IRS determines that it has FATCA filing $ $ not been reported. 13 Bond premium on tax-exempt bond $ Account number (see instructions) 14 Tax-exempt and tax credit 15 State 16 State identification no. 17 State tax withheld bond CUSIP no. $ $ Form 1099-INT (keep for your records) www.irs.gov/form1099int Department of the Treasury - Internal Revenue Service requirement 12 CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 2019 City of Denver Finance Office Denver, CO 80203 Interest Income 1 Interest income Form 1099-INT $ 2 Early withdrawal penalty Copy B Service. PAYER'S federal identification number RECIPIENT'S identification number $ For Recipient 21-9999999 555-55-5551 3 Interest on U.S. Savings Bonds and Treas. obligations 444-44-4442 $ This is important tax RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses information and is Thomas & Rachel McNeil $ $ being furnished to the Internal Revenue 6 Foreign tax paid 7 Foreign country or U.S. possession If you are Street address (including apt. no.) $ required to file 8 Tax-exempt interest 9 Specified private activity bond return, a negligence 21905 Inspiration Dr. interest penalty or other 550.00 sanction may be City or town, state or province, country, and ZIP or foreign postal code $ $ imposed on you 10 Market discount 11 Bond premium this income is Henderson, CO 80022 taxable and the IRS determines that it has FATCA filing $ $ requirement 12 not been reported. 13 Bond premium on tax-exempt bond $ Account number (see instructions) 14 Tax-exempt and tax credit 15 State 16 State identification no. 17 State tax withheld bond CUSIP no. Form 1099-INT (keep for your records) www.irs.gov/form 1099int Department of the Treasury - Internal Revenue Service 2019 sanction de penalty or other CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, city or town, state or province, * Caution: The amount shown OMB No. 1545-0901 country, ZIP or foreign postal code, and telephone number may not be fully deductible by you. Limits based on the loan amount Mortgage USA Mortgage Company and the cost and value of the 123 Main Street secured property may apply. Also, Interest Anytown, MD 55555 you may only deduct interest to the extent it was incurred by you, Statement actually paid by you, and not reimbursed by another person. Form 1098 RECIPIENT'S federal identification no. PAYER'S social security number 1 Mortgage interest received from payer(s)/borrower(s)* Copy B 555-55-5551 84-1 4-1234561 $ 8,900.00 For Payer/Borrower PAYER'S/BORROWER'S name 2 Points paid on purchase of principal residence The information in boxes 1, Thomas McNeil 2, and 3 is important tax Rachel McNeil information and is being $ furnished to the Internal Revenue Service. If you al Street address (including apt. no.) 3 Refund of overpaid interest required to file a return, a 21905 Inspiration Dr., $ may a don you if the IRS determines City or town, state or province, country, and ZIP or foreign postal code 4 that an underpayment of tax results because you Henderson, CO 80022 overstated a deduction for this mortgage interest or for Account number (see instructions) these points or because you 5 did not report this refund of interest on your return. Form 1098 (keep for your records) www.irs.gov/form1098 Department of the Treasury - Internal Revenue Service 2019 Tuition Statement CORRECTED FILER'S name, street address, city or town, state or province, country, ZIP or 1 Payments received for OMB No. 1545-1574 foreign postal code, and telephone number qualified tuition and related expenses MSU Denver P.O. Box 173362 2 Amounts billed for Denver, CO 80217 qualified tuition and related expenses $ 18,000.00 Form 1098-T FILER'S federal identification no. STUDENT'S social security number 3 If this box is checked, your educational institution 84-0559160 454-54-5454 has changed its reporting method for 2015 STUDENT'S name 4 Adjustments made for a 5 Scholarships or grants Robert McNeil prior year Copy B For Student Street address (including apt. no.) 21905 Inspiration Dr. City or town, state or province, country, and ZIP or foreign postal code Henderson, CO 80022 $ 6 Adjustments to scholarships or grants for a prior year $ 7 Checked if the amount in box 1 or 2 includes amounts for an academic period beginning January - March 2016 This is important tax information and is being furnished to the Internal Revenue Service. This form may be used to complete Form 8863 to claim education credits. Give it to the tax preparer or use it to prepare the tax return. Service Provider/Acct. No. (see instr.) 8 Check if at least half-time student $ 9 Checked if a graduate student 10 Ins. contract reimb./refund x $ Form 1098-T (keep for your records) www.irs.gov/form1098t Department of the Treasury - Internal Revenue Service RS en file Visit the IRS website at www.irs.gov/efile a Employee's social security number 555-55-5551 b Employer identification number (EIN) 91-000102 c Employer's name, address, and ZIP code Rocky Mountain Airlines, Inc. 375 West Flight Blvd. Denver, CO 80011 Safe, accurate, FAST! Use OMB No. 1545-0008 1 Wages, tips, other compensation 123,645 3 Social security wages 118,500 5 Medicare wages and tips 138,645 7 Social security tips 2 Federal income tax withheld 21,000 4 Social security tax withheld 7,347 6 Medicare tax withheld 2,010 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans e Employee's first name and initial Thomas L. McNeil 21905 Inspiration Dr. Henderson, CO 80022 12a See instructions for box 12 D 15,000 12b 13 Statutory employee Retirement plan Third-party sick pay 8 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's state ID number CO 987654321 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name 123,645 5,724 W-2 Statement Wage and Tax Department of the Treasury-Internal Revenue Service 2019 Form Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 2019 Interest Income 1 Interest income US Treasury Washington DC 000001 Form 1099-INT $ 2 Early withdrawal penalty Copy B PAYER'S federal identification number RECIPIENT'S identification number $ For Recipient 21-9999999 555-55-5551 3 Interest on U.S. Savings Bonds and Treas, obligations 444-44-4442 1,070.00 $ RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses This is important tax information and is $ $ Thomas & Rachel McNeil being furnished to the 6 Foreign tax paid 7 Foreign country or U.S. possession Internal Revenue Service. If you are Street address (including apt. no.) $ 8 Tax-exempt interest 9 Specified private activity bond return, a negligence 21905 Inspiration Dr. interest sanction may be City or town, state or province, country, and ZIP or foreign postal code $ $ imposed on on you if 10 Market discount 11 Bond premium this income is Henderson, CO 80022 taxable and the IRS determines that it has FATCA filing $ $ not been reported. requirement 12 13 Bond premium on tax-exempt bond $ Account number (see instructions) 14 Tax-exempt and tax credit 15 State 16 State identification no. 17 State tax withheld bond CUSIP no. required to file penalty or other Form 1099-INT (keep for your records) www.irs.gov/form1099int Department of the Treasury - Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 2019 Interest Income SCD Credit Union 21 N South St Denver, CO 80203 1 Interest income 65.00 $ 2 Early withdrawal penalty Form 1099-INT Copy B Service. negligence PAYER'S federal identification number RECIPIENT'S identification number $ For Recipient 21-9999999 555-55-5551 3 Interest on U.S. Savings Bonds and Treas. obligations 444-44-4442 $ This is important tax RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses information and is Thomas & Rachel McNeil $ $ being furnished to the 6 Foreign tax paid 7 Foreign country or U.S. possession Internal Revenue If Street address (including apt. no.) you are $ required to file a 8 Tax-exempt interest 9 Specified private activity bond 21905 Inspiration Dr. return, interest penalty or other sanction may be City or town, state or province, country, and ZIP or foreign postal code $ $ imposed on you if 10 Market discount 11 Bond premium Henderson, CO 80022 this income is taxable and the IRS determines that it has FATCA filing $ $ not been reported. 13 Bond premium on tax-exempt bond $ Account number (see instructions) 14 Tax-exempt and tax credit 15 State 16 State identification no. 17 State tax withheld bond CUSIP no. $ $ Form 1099-INT (keep for your records) www.irs.gov/form1099int Department of the Treasury - Internal Revenue Service requirement 12 CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP Payer's RTN (optional) or foreign postal code, and telephone no. OMB No. 1545-0112 2019 City of Denver Finance Office Denver, CO 80203 Interest Income 1 Interest income Form 1099-INT $ 2 Early withdrawal penalty Copy B Service. PAYER'S federal identification number RECIPIENT'S identification number $ For Recipient 21-9999999 555-55-5551 3 Interest on U.S. Savings Bonds and Treas. obligations 444-44-4442 $ This is important tax RECIPIENT'S name 4 Federal income tax withheld 5 Investment expenses information and is Thomas & Rachel McNeil $ $ being furnished to the Internal Revenue 6 Foreign tax paid 7 Foreign country or U.S. possession If you are Street address (including apt. no.) $ required to file 8 Tax-exempt interest 9 Specified private activity bond return, a negligence 21905 Inspiration Dr. interest penalty or other 550.00 sanction may be City or town, state or province, country, and ZIP or foreign postal code $ $ imposed on you 10 Market discount 11 Bond premium this income is Henderson, CO 80022 taxable and the IRS determines that it has FATCA filing $ $ requirement 12 not been reported. 13 Bond premium on tax-exempt bond $ Account number (see instructions) 14 Tax-exempt and tax credit 15 State 16 State identification no. 17 State tax withheld bond CUSIP no. Form 1099-INT (keep for your records) www.irs.gov/form 1099int Department of the Treasury - Internal Revenue Service 2019 sanction de penalty or other CORRECTED (if checked) RECIPIENT'S/LENDER'S name, street address, city or town, state or province, * Caution: The amount shown OMB No. 1545-0901 country, ZIP or foreign postal code, and telephone number may not be fully deductible by you. Limits based on the loan amount Mortgage USA Mortgage Company and the cost and value of the 123 Main Street secured property may apply. Also, Interest Anytown, MD 55555 you may only deduct interest to the extent it was incurred by you, Statement actually paid by you, and not reimbursed by another person. Form 1098 RECIPIENT'S federal identification no. PAYER'S social security number 1 Mortgage interest received from payer(s)/borrower(s)* Copy B 555-55-5551 84-1 4-1234561 $ 8,900.00 For Payer/Borrower PAYER'S/BORROWER'S name 2 Points paid on purchase of principal residence The information in boxes 1, Thomas McNeil 2, and 3 is important tax Rachel McNeil information and is being $ furnished to the Internal Revenue Service. If you al Street address (including apt. no.) 3 Refund of overpaid interest required to file a return, a 21905 Inspiration Dr., $ may a don you if the IRS determines City or town, state or province, country, and ZIP or foreign postal code 4 that an underpayment of tax results because you Henderson, CO 80022 overstated a deduction for this mortgage interest or for Account number (see instructions) these points or because you 5 did not report this refund of interest on your return. Form 1098 (keep for your records) www.irs.gov/form1098 Department of the Treasury - Internal Revenue Service 2019 Tuition Statement CORRECTED FILER'S name, street address, city or town, state or province, country, ZIP or 1 Payments received for OMB No. 1545-1574 foreign postal code, and telephone number qualified tuition and related expenses MSU Denver P.O. Box 173362 2 Amounts billed for Denver, CO 80217 qualified tuition and related expenses $ 18,000.00 Form 1098-T FILER'S federal identification no. STUDENT'S social security number 3 If this box is checked, your educational institution 84-0559160 454-54-5454 has changed its reporting method for 2015 STUDENT'S name 4 Adjustments made for a 5 Scholarships or grants Robert McNeil prior year Copy B For Student Street address (including apt. no.) 21905 Inspiration Dr. City or town, state or province, country, and ZIP or foreign postal code Henderson, CO 80022 $ 6 Adjustments to scholarships or grants for a prior year $ 7 Checked if the amount in box 1 or 2 includes amounts for an academic period beginning January - March 2016 This is important tax information and is being furnished to the Internal Revenue Service. This form may be used to complete Form 8863 to claim education credits. Give it to the tax preparer or use it to prepare the tax return. Service Provider/Acct. No. (see instr.) 8 Check if at least half-time student $ 9 Checked if a graduate student 10 Ins. contract reimb./refund x $ Form 1098-T (keep for your records) www.irs.gov/form1098t Department of the Treasury - Internal Revenue Service