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Use the following information to complete Jacqueline Jacinto 2020 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. You will need the following forms and schedules in addition to form 1040 to complete the assignment: Schedule 1 (other income and deductions), Schedule 2 (other taxes such as SE Tax), possibly Schedule A (for itemized deductions if itemized deductions are higher than the standard deduction), Schedule B (if you have interest and dividend income), Schedule C (for business income and deductions) and Schedule SE (if there is net self-employment income) and Form 8995 (if you have net income from Schedule C then you will have Qualified Business Income Deduction). The forms, schedules, and instructions are available in the Blackboard course under instructor resources or at the IRS Web site (www.irs.gov). The instructions for the forms are very helpful and can be downloaded from the IRS website. Also, use Form Finder in the TR Checkpoint library for additional line by line instructions. Jacqueline Jacinto was married, however, her husband Raul passed away in 2019. Jacqueline has two children, Jackie and Johnny. Jacqueline worked as the Pastry Chef at the Dulce Bakery in Las Cruces, NM earning a salary of $79,850. She also did some catering work on the side and reported revenues of $14,990. Jacqueline won $6,825 in gambling pools at work for NFL games. Lastly, she received $10,000 from Raul's life insurance policy that paid out in 2020. . DO NOT prepare any state income tax returns The Jacinto's live at 3015 Agave Ridge, Santa Teresa, NM 88008 Jacqueline s birthday is 5/23/1981 and her Social Security number is 588-19-1198 Jackie's birthday is 12/7/2010 and her Social Security number is 536-53-6385 Johnny's birthday is 6/27/2013 and his Social Security number is 539-44-6721 The Jacinto's do not have any foreign bank accounts or trusts, nor did they have any transactions with virtual currency Jacqueline did file forms 1099 (contract labor) for her catering services as required and she uses the cash method of accounting for her business The Jacinto's had health insurance coverage all year provided by Dulce Bakery The Jacinto's want you to determine the best filing status for their family The Jacinto's do not qualify for any Recovery Rebate Credit A $2,000 child tax credit is available for each child under the age of 17 (box 19 Form 1040) Do not consider AMT tax for the tax return For Form 8895 (Line 1i, Line 2, and Line 4) The Total qualified business income amount is the net income from Schedule C (line 31) less the employer portion of self-employment taxes from Schedule SE (line 13). Determine the qualified business income deduction available for Jacqueline's catering business (line 5 Form 8995 and line 13 Form 1040). The Jacinto's reported the following activities and payments during the year $ 2020 Activity Jacqueline's W2 Information: Salary Federal income tax withheld State income tax withheld Social Security tax withheld Medicare tax withheld 79,850 3,250 2,230 4,951 1,158 $ $ Business Activity Jacqueline's Catering Income Business office expense Contract labor expense Business insurance expense Advertising Business meals expense (100%) Repairs 14,990 1,020 2,450 3,060 1,850 900 1,320 $ 670 4,800 5,005 5,925 Tax preparation fees Gambling losses for the year Real estate taxes paid on residence Home mortgage interest paid (original loan $350,000 in 2013, outstanding balance of $206,000) Home- equity loan interest paid Jacqueline used the home equity loan to pay for her trip to Las Vegas to gamble. Interest was paid to LFCU (outstanding balance of $55,000) Cash contributions to Good Shepherd church (Jacqueline has receipts) Medical expenses 2,980 2,530 1,702 Use the following information to complete Jacqueline Jacinto 2020 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. You will need the following forms and schedules in addition to form 1040 to complete the assignment: Schedule 1 (other income and deductions), Schedule 2 (other taxes such as SE Tax), possibly Schedule A (for itemized deductions if itemized deductions are higher than the standard deduction), Schedule B (if you have interest and dividend income), Schedule C (for business income and deductions) and Schedule SE (if there is net self-employment income) and Form 8995 (if you have net income from Schedule C then you will have Qualified Business Income Deduction). The forms, schedules, and instructions are available in the Blackboard course under instructor resources or at the IRS Web site (www.irs.gov). The instructions for the forms are very helpful and can be downloaded from the IRS website. Also, use Form Finder in the TR Checkpoint library for additional line by line instructions. Jacqueline Jacinto was married, however, her husband Raul passed away in 2019. Jacqueline has two children, Jackie and Johnny. Jacqueline worked as the Pastry Chef at the Dulce Bakery in Las Cruces, NM earning a salary of $79,850. She also did some catering work on the side and reported revenues of $14,990. Jacqueline won $6,825 in gambling pools at work for NFL games. Lastly, she received $10,000 from Raul's life insurance policy that paid out in 2020. . DO NOT prepare any state income tax returns The Jacinto's live at 3015 Agave Ridge, Santa Teresa, NM 88008 Jacqueline s birthday is 5/23/1981 and her Social Security number is 588-19-1198 Jackie's birthday is 12/7/2010 and her Social Security number is 536-53-6385 Johnny's birthday is 6/27/2013 and his Social Security number is 539-44-6721 The Jacinto's do not have any foreign bank accounts or trusts, nor did they have any transactions with virtual currency Jacqueline did file forms 1099 (contract labor) for her catering services as required and she uses the cash method of accounting for her business The Jacinto's had health insurance coverage all year provided by Dulce Bakery The Jacinto's want you to determine the best filing status for their family The Jacinto's do not qualify for any Recovery Rebate Credit A $2,000 child tax credit is available for each child under the age of 17 (box 19 Form 1040) Do not consider AMT tax for the tax return For Form 8895 (Line 1i, Line 2, and Line 4) The Total qualified business income amount is the net income from Schedule C (line 31) less the employer portion of self-employment taxes from Schedule SE (line 13). Determine the qualified business income deduction available for Jacqueline's catering business (line 5 Form 8995 and line 13 Form 1040). The Jacinto's reported the following activities and payments during the year $ 2020 Activity Jacqueline's W2 Information: Salary Federal income tax withheld State income tax withheld Social Security tax withheld Medicare tax withheld 79,850 3,250 2,230 4,951 1,158 $ $ Business Activity Jacqueline's Catering Income Business office expense Contract labor expense Business insurance expense Advertising Business meals expense (100%) Repairs 14,990 1,020 2,450 3,060 1,850 900 1,320 $ 670 4,800 5,005 5,925 Tax preparation fees Gambling losses for the year Real estate taxes paid on residence Home mortgage interest paid (original loan $350,000 in 2013, outstanding balance of $206,000) Home- equity loan interest paid Jacqueline used the home equity loan to pay for her trip to Las Vegas to gamble. Interest was paid to LFCU (outstanding balance of $55,000) Cash contributions to Good Shepherd church (Jacqueline has receipts) Medical expenses 2,980 2,530 1,702