To begin this assignment, complete Problem I:7-64 in your textbook. Use the following additional information to complete the tax return:

If the taxpayers have a refund, have the entire amount refunded.

Dan's commissions were $150,000 instead of $125,000.

Change federal estimated tax payments to $26,000 instead of $20,000 and state estimated taxes to $2,500 instead of $2,200.

The taxpayers made $15,000 in cash charitable contributions instead of $9,000.

For Schedule D:

• Assume the STCL was from Apple stock originally purchased on 1/4/20 for $11,000 and sold on 3/1/20 for $3,200.
• Assume the LTCG was from the sale of Google, Inc. stock originally purchased on 7/19/14 for $15,100 and sold on 10/1/20 for $20,000.
• Assume the LTCL was from the sale of Intel, Inc. stock originally purchased on 1/30/16 for $49,200 and sold on 11/2/20 for $46,000.

Assume the charitable donation of GE stock was to the March of Dimes. It was donated on 5/12/20 and was originally purchased on 4/17/13.

Schedule C:

• Dan uses the cash method.
• The Dan's house is 3,000 square feet.
• The vehicle was placed in service on 12/31/18.
• Answer "yes" to items 45-47b on page 2.

Use the 2020 tax forms from the IRS website located in the Topic 4 resources.

General Requirements

For this assignment you will need to submit the following tax forms as a single document:

• Form 1040
• Schedule 1, Form 1040
• Schedule 2, Form 1040
• Schedule 3, Form 1040 (Schedule 3 is not applicable in 2020)
• Schedule A, Form 1040
• Schedule B, Form 1040
• Schedule C, Form 1040
• Schedule D, Form 1040
• Form 8949, Form 1040
• Schedule SE, Form 1040
• Form 8283, Form 1040
• Form 8995, Form 1040

Tax Return Figures for 2020 Tax Forms - Data Set B

Problem I.7-64 using Data set B

Check figures for the various forms (check figures are not provided for every form):

Form 1040

• Line 11, AGI $161,857
• Line 24, Total tax 30,660

Schedule 1

• Line 22, Adjustments to income $13,253

Schedule A

• Total itemized deductions $40,400

Schedule C

• Line 28, Total expenses $23,790

Schedule D

• Line 16 $(6,100)

Form 8949

• You will have one transaction on page 1 and two transactions on page 2. Remember to subtotal items on line 2 on both pages.

Form 8829 (not required) use simplified method as directed in the problem. Note, you have to determine the amount of square footage for the home office based on the information provided.

*Remember to use current year tax forms. Points will be deducted for incorrect forms and incorrect sequence. In addition, be sure to submit the tax forms in order as required by the IRS. You will notice a Sequence No. on the top right of each tax return form except for the Form 1040. Form 1040 is the first form in sequence.

COMPREHENSIVE PROBLEM 1:7-62 Dan M. and Cheryl A. Peters are married, file a joint return, and have no children. Dan, age 45, is an independent contractor working in pharmaceutical sales and Cheryl, age 42, is a nurse at a local hospital. Dan's SSN is 400-20-0000 and Cheryl's SSN is 200-40-0000 and they reside at 2033 Palmetto Drive, Atlanta, GA 30304. Dan is paid according to commissions from sales, and he has no income tax or payroll tax withholdings. Dan oper- ates his business from his home office. During 2019, Dan earned total commissions in his business of $125,000. Cheryl earned a salary during 2019 of $45,400, with the following withholdings: $6,000 federal taxes, $1,800 state taxes, $2,815 OASDI (Social Security), and $658 Medicare taxes. During 2019, Dan and Cheryl had interest income from corporate bonds and bank ac- counts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2019: LTCG $4,900 LTCL (3,200) STCG 0 STCL (7,800) He had no capital loss carryovers from previous years. Basis for the stocks were re- ported to the IRS by the brokerage firm. Dan does a considerable amount of travel in connection with his business and uses his own car. During 2019, Dan drove his car a total of 38,000 miles, of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the follow- ing travel expenses while away from home during the year: Hotel $4,200 Meals 820 Entertainment of customers 1,080 Tips 100 Laundry and cleaning 150 Total $6,350 Dan uses the simplified method to deduct expenses for his office-in-home. His office measures 15 feet by 12 feet in size. Cheryl incurred several expenses in connection with her nursing job. She paid $450 in professional dues, $200 in professional journals, and $350 for uniforms. Dan and Cheryl had the following other expenditures during the year: Health insurance premiums (after-tax) $ 4,400 Doctor bills 470 Real estate taxes on home 6,800 Personal property taxes 1,400 Mortgage interestall deductible 7,400 Charitable contributionscash 9,000 Charitable contributionsApple stock owned for 5 years: FMV $8,000 Adjusted basis 2,000 Tax preparation fees ($250 allocated to Dan's business) 750 1:7-64 TAX FORM/RETURN PREPARATION PROBLEM Using the information in Problem 1:7-62 for Dan and Cheryl, prepare a Form 1040, including Schedule 1, 2, and 3, Schedule A, C, D, and SE, and Forms 8283, 8949 and 8995 for 2019. COMPREHENSIVE PROBLEM 1:7-62 Dan M. and Cheryl A. Peters are married, file a joint return, and have no children. Dan, age 45, is an independent contractor working in pharmaceutical sales and Cheryl, age 42, is a nurse at a local hospital. Dan's SSN is 400-20-0000 and Cheryl's SSN is 200-40-0000 and they reside at 2033 Palmetto Drive, Atlanta, GA 30304. Dan is paid according to commissions from sales, and he has no income tax or payroll tax withholdings. Dan oper- ates his business from his home office. During 2019, Dan earned total commissions in his business of $125,000. Cheryl earned a salary during 2019 of $45,400, with the following withholdings: $6,000 federal taxes, $1,800 state taxes, $2,815 OASDI (Social Security), and $658 Medicare taxes. During 2019, Dan and Cheryl had interest income from corporate bonds and bank ac- counts of $1,450 and qualified dividends from stocks of $5,950. Dan also actively trades stocks and had the following results for 2019: LTCG $4,900 LTCL (3,200) STCG 0 STCL (7,800) He had no capital loss carryovers from previous years. Basis for the stocks were re- ported to the IRS by the brokerage firm. Dan does a considerable amount of travel in connection with his business and uses his own car. During 2019, Dan drove his car a total of 38,000 miles, of which 32,000 were business related. He also had business-related parking fees and tolls during the year of $280. Dan uses the mileage method for deducting auto expenses. Dan also had the follow- ing travel expenses while away from home during the year: Hotel $4,200 Meals 820 Entertainment of customers 1,080 Tips 100 Laundry and cleaning 150 Total $6,350 Dan uses the simplified method to deduct expenses for his office-in-home. His office measures 15 feet by 12 feet in size. Cheryl incurred several expenses in connection with her nursing job. She paid $450 in professional dues, $200 in professional journals, and $350 for uniforms. Dan and Cheryl had the following other expenditures during the year: Health insurance premiums (after-tax) $ 4,400 Doctor bills 470 Real estate taxes on home 6,800 Personal property taxes 1,400 Mortgage interestall deductible 7,400 Charitable contributionscash 9,000 Charitable contributionsApple stock owned for 5 years: FMV $8,000 Adjusted basis 2,000 Tax preparation fees ($250 allocated to Dan's business) 750 1:7-64 TAX FORM/RETURN PREPARATION PROBLEM Using the information in Problem 1:7-62 for Dan and Cheryl, prepare a Form 1040, including Schedule 1, 2, and 3, Schedule A, C, D, and SE, and Forms 8283, 8949 and 8995 for 2019