The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2019.

LineDescriptionAmount

1Wages, tips, other compensation$65,000.00

2Federal income tax withheld 9,500.00

3Social Security wages 65,000.00

4Social Security tax withheld4,030.00

5Medicare wages and tips65,000.00

6Medicare tax withheld942.50

15StateArizona

16State wages, tips, etc. 65,000.00

17State income tax withheld1,954.00

During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV.

Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2019. On her 2018 Federal income tax return, she claimed the standard deduction.

Fees earned from her part-time tax practice in 2019 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service.

On February 8, 2019, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2019, Beth sold the stock for $14 a share.

Beth bought a used sport utility vehicle for $6,000 on June 5, 2019. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2019, she sold the vehicle to a friend for $6,500.

On January 2, 2019, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2019, for $55 a share.

During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business.

Cost of personal computer$7,000

Cost of printer 2,000

Furniture3,000

Supplies650

Fee paid to computer consultant3,500

Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 179. These items were placed in service on January 15, 2019, and used 100% in her business.

Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals.

During the year, Beth paid $300 for prescription medicines and $2,875 for doctor bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350.

Beth paid estimated taxes of $1,000. Beth does not own or use any virtual currency.

Part 1Tax Computation

Compute the net tax payable or refund due for Beth R. Jordan for 2019. If you use tax forms for your solution, you will need Form 1040 (and its Schedules 1, 2, 3, B, C, D, and SE) and Forms 4562, 8949, and 8995. Suggested software: ProConnect Tax Online.