thats the rest of the question and the basic tax formula that would supposedly work too.
John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. John, a single taxpayer, age 67. He lives with his dependent elderly mother whom he completely supports. John is a self-employed accountant who sees and consults his clients exclusively at his home office. Other relevant information includes: . . Earnings from his consulting business: $95.000 Rents collected from properties John owns, including $1,000 rent deposit $22,000 Interest income (treasury bonds) $500 Interest income (municipal bonds) $450 Life insurance payment to John $50,000 (John was a beneficiary on his father's life insurance policy and received a lump sum payment equal to the policy face value) Personal Deductible Expenses (Itemized Deductions) $16,300 Tax Withholdings (prepayments) $7.000 John receives monthly $1.000 pension plan distributions from his former employer's qualified pension plan: John contributed $84,000 to the plan. In addition, John was in a car accident and received the following settlement from an insurance company: S12.000 for the physical injury that he sustained. $3,000 for the relating emotional distress, and $4,000 in punitive damages . Voor $500 $450 $50,000 . Interest income treasury bonds) Interest income (municipal bonds) Life insurance payment to John (John was a beneficiary on his father's life insurance policy and received a lump sum payment equal to the policy face value) Personal Deductible Expenses (Itemized Deductions) Tax Withholdings (prepayments) . $16,300 $7,000 John receives monthly $1,000 pension plan distributions from his former employer's qualified pension plan: John conubuled $84,000 to the plan. In addition, John was in a car accident and received the following settlement from an insurance company: $12,000 for the physical injury that he sustained, $3,000 for the relating emotional distress, and $4,000 in punitive damages. Complete Individual Federal Income Tax Return (Form 1040) for the year ending December 31, 2020. Alternatively, you can show your work by inputting relevant information into the Tax Formula studied in class. You may use the Internal Revenue web-site (www.irs.gov) or any other internet source to download you will need (but you will not be penalized for not using the forms). Do not worry about tax rates/ tax credits as we did not discuss them comprehensively in class. any forms Basic tax formula for individuals Income from any source minus: Exclusins (non-taxable income) Gross income SA minus: Deductions for adjusted gross income Adjusted Gross Income (AGI) Minus: Deductions from AGI: Greater of itemized or Standard into Qualified business income deduction Taxable income Times: Tax rate Gross tax (income tax before credits) Minus: Tax credits Net tar liability Minus: Pre payments Balance due or refund sewted allot
