Tsate Kongia (birthdate 02/14/1954) is an unmarried high school principal. Tsate received the following tax documents (which are located on separate tabs in the problem):
- W-2 Form
- Form 1099-INT
- Form 1099-DIV
- Form 1099-B
During the year, Tsate paid the following amounts (all of which can be substantiated):
| Home mortgage interest reported on Form 1098 (not shown) | $9,600 | | KS state income tax payment for 2019 | $500 | | MasterCard interest | 550 | | Life insurance (whole life policy) | 750 | | Property taxes on personal residence | 1,500 | | Blue Cross medical insurance premiums | 250 | | Other medical expenses | 800 | | Income tax preparation fee | 300 | | Charitable contributions (in cash) | 750 | |
On January 28, 2020, Tsate sold land for $180,000 (basis to Tsate of $130,000). The land was purchased 6 years ago as an investment. Tsate received $50,000 as a down payment and the buyer's 10-year note for $130,000. The note is payable at the rate of $13,000 per year plus 8 percent interest. On December 31, 2020, the first of the ten principal and interest payments was received by Tsate.
Tsate also helps support his father, Jay Hawke, who lives in a nearby senior facility. Jay's Social Security number is 433-33-2121. Tsate provides over one-half of Jay's support but Jay also has a pension that paid him income of $14,000 in 2020. His Social Security benefits were $3,200 in 2020. Tsate received a $1,200 EIP in 2020.
Required: Complete Tsate's Form 1040-SR, Schedules A, B and D, Form 8949, Form 6252 and Qualified Dividends and Capital Gain Tax Worksheet.
- Make realistic assumptions about any missing data.
- She had health care coverage for the entire year and does not want to make a contribution to the presidential election campaign.
- Enter all amounts as positive numbers, except for a "loss". If required, enter a "loss" as a negative number on the tax form.
- If an amount box does not require an entry or the answer is zero, enter "0".
- If required round any decimals to four places and round any dollar amount to the nearest dollar.
Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box .. 5a 1,500 b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c d Add lines 5a through 5c. 5d e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately).. 5e 6 Other taxes. List type and amount 6 7 Add lines 5e and 6. 7 Interest 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box You Paid a Home mortgage interest and points reported to you on Form 1098. See instructions if limited 8a Caution: Your mortgage interest deduction may be limited (see instructions). b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address. 8b Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions ... 11 Charity Caution: If you made a gift and got a benefit for it, see instructions. 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500. 12 13 Carryover from prior year 13 14 Add lines 11 through 13 14 Casualty and Theft Losses 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 15 16 Other-from list in instructions. List type and amount Other Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 12 17 Itemized 18 If you elect to itemize deductions even though they are less than your standard deduction, Deductions check this box ... For Paperwork Reduction Act Notice, see the Instructions for Cat. No. 17145C Schedule A (Form 1040) 2020 Forms 1040 and 1040-SR. Feedback Check My Work Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box .. 5a 1,500 b State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c d Add lines 5a through 5c. 5d e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately).. 5e 6 Other taxes. List type and amount 6 7 Add lines 5e and 6. 7 Interest 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box You Paid a Home mortgage interest and points reported to you on Form 1098. See instructions if limited 8a Caution: Your mortgage interest deduction may be limited (see instructions). b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address. 8b Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions ... 11 Charity Caution: If you made a gift and got a benefit for it, see instructions. 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500. 12 13 Carryover from prior year 13 14 Add lines 11 through 13 14 Casualty and Theft Losses 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 15 16 Other-from list in instructions. List type and amount Other Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 12 17 Itemized 18 If you elect to itemize deductions even though they are less than your standard deduction, Deductions check this box ... For Paperwork Reduction Act Notice, see the Instructions for Cat. No. 17145C Schedule A (Form 1040) 2020 Forms 1040 and 1040-SR. Feedback Check My Work
