USE 2020 TAX RULES Reba Dixon is a fifth grade school teacher who earned a salary of $38,000 in 2020. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced on 12/31/2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,000 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,800 in state income taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather 2952 Insurance premiums Medical care expenses Prescription. Medicine Bonprescription medicine Newscontact lenses for Beatha 350 100 Shortly after the move, Reba gol distracted while driving and she tan into a street sign The accident caused 5900 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,500 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,000, but she did not sell any of her stocks. Heather reported $6,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather's only source of income for the year. Reba had $10,000 of federal income taxes withheld by her employer. Heather made $1,000 of estimated tax payments during the year. Reba did not make any estimated payments. Reba had qualifying insurance for purposes of the Affordable Care Act (ACA). Required information (Form 1040 or 1040- SR) Additional Income and Adjustments to Income 2019 Attachment Sequence No. 01 Your social security number (Enter as...) 111-11-1111 Yes No 1 Department of the Treasury Attach to Form 1040 or 1040-SR Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information Name() shown on Form 1040 or 1040-SR Raba Don At any time during 2010, did you reolive, sell, send, exchange, or otherwise acquire any financial interest in anyvirtual currency? Part 1 Additional Income Table refunds, creditor ofsets of state and local income taxes Allmony received Date of original divorce or separation agreements Instruction) 12/01/2016 3 Business como loss. Attach Schedule Other gains or losses). Attach Form 4797 6 Rartarrestato, royalties, partnership. Scorporations. trusts, oto Attach Schedule 8 Farm income or (0) Attach Schedula F 7 Unemployment compensation Omer income type and amount Disability insurance Payment 5,800 14.400 20 b 3 0 4 4 0 6 30,500 0 0 08 50.700 Part II Combines the enter har and on Form 1040 or 1040-5. in a Adjustments to Income Schedule 3 of Form 1040 Additional Credits and Payments OMB No 1545-0074 SCHEDULE 3 (Form 1040 or 1040- SR) Department of the Treasury Intemal Revenue Service Name SHOWTon Form 1040 ar 1040-SR 2019 Attach to Form 1040 or 1040-AR Go to www.le.co/Form 1040 for Instruction and the latest Information, Attachment Sequence No. 03 Your social security number a 3800 Reba Dixon 111-11-1111 Part! Nonrefundable Credits 1 Forsion tax credit Attach Form 1116 it required 1 0 2 Crest for child and dependent care expenses. Anach For 2441 2 2 Education credits from Form 1269, ina 19 3 0 % 4 Retrament saving contribution credit Atsach Form 3000 4 0 Residenti androy credit Attach Form 695 5 0 sonar creats from For bat 6 0 Acenes 1 tron. Enter here and include on Form 1040 1040-5R 1 130 7 0 Part II Other Payments and Refundable Credits 8 2019 stated tex payments and pled from 2018 ratum 8 9 Not ramium lax credit At Form 1962 9 0 10 Amount pard worextonto tonton 10 0 11 Exc5 scale and IRR withhed 11 0 12 Credit for SAF 4136 12 0 13 Catara Form Reserved mo 13 14 Aesthoon 13 En 1040 1040 R18 14 For Paperwork Reduction of Notre See our tex roturn intructions Galho lobodule Form 1040 or 1040-3R) 2010 THIS FORNETOA SIMULATION OF AN OFFICIAL U. TAX FORMI TU NOT THE OFFICIAL FORM ITSELF DO NOTUBE THIS FORM FOR TAX FILINGI OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL 2020 MOON HI Eduation