Question

1 Approved Answer

Posted on Jul 29, 2024

Use the information below from Form W-2, 1099-INT, 1099-DIV and the assignment below to complete the Schedule 1 (Additional Income) form. Alexander Smith and his

Use the information below from Form W-2, 1099-INT, 1099-DIV and the assignment below to complete the Schedule 1 (Additional Income) form.

image text in transcribed

Alexander Smith and his wife Allison are married and will file a joint tax return for 2022. The Smiths live at 1234 Buena Vista Drive, Orlando, FL 32830. Alexander is a commuter airline pilot but took 6 months off from his job in 2022 to obtain a higher-level pilot's license. The Smiths have an 18-year-old son, Brad, who is enrolled in twelfth grade at the Walt Disney Prep School. The Smiths also have a 19-year-old daughter, Angelina, who is a part-time first-year student at Orange County Community College (OCCC). Angelina is married to Sean Shirker, who is 19 years old and also a part-time student at OCCC. Sean and Angelina have a 1-year-old child, Trask (Social Security number 115-45-7893). All the Shirkers live in an apartment near the Smiths. Angelina and Sean both also work part-time for Sean's wealthy grandfather as apprentices in his business. The Shirker's wages for the year were $50,000 which allowed them to pay all the personal expenses for themselves and Trask. Five years ago, Alexander divorced Jennifer Amistad (Social Security number 341-55-6789). Alexander pays Jennifer $200 per month in alimony under the divorce decree. Not included with the Smith's tax forms was interest from State of Florida bonds of $145.00. Alexander also received a Form W-2, Form 1099-INT, and Form 1099-DIV that is listed above. CORRECTED (if checked) Form 1099-DIV (keep for your records) www.irs.gov/Form10990IV Department of the Treasury - Internal Revenue Service CORRECTED (if checked) Form 1099-INT (keep for your records) www.irs.gov/Form10991NT Department of the Treasury - Internal Revenue Service Y= Wage and Tax 2021 Department of the Treasury-Internal Revenue Service Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Intemal Revenue Service. Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions): 3 Business income or (loss). Attach Schedule C . 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F. 7 Unemployment compensation 8 Other income: a Net operating loss b Gambling c Cancellation of debt d Foreign earned income exclusion from Form 2555 e Income from Form 8853 f Income from Form 8889 g Alaska Permanent Fund dividends h Jury duty pay . i Prizes and awards j Activity not engaged in for profit income k Stock options. I Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property . . . . m Olympic and Paralympic medals and USOC prize money (see instructions) n Section 951(a) inclusion (see instructions) o Section 951A(a) inclusion (see instructions) . p Section 461(l) excess business loss adjustment q Taxable distributions from an ABLE account (see instructions) r Scholarship and fellowship grants not reported on Form W-2 s Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d. . . . . . . . . . . . . . . . . . . t Pension or annuity from a nonqualifed deferred compensation plan or a nongovernmental section 457 plan u Wages earned while incarcerated z Other income. List type and amount: Schedule 1 (Form 1040) 2022 Page 2 Part II Adjustments to Income 11 Educator expenses . . . . . 12 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 13 Health savings account deduction. Attach Form 8889 14 Moving expenses for members of the Armed Forces. Attach Form 3903 15 Deductible part of self-employment tax. Attach Schedule SE 16 Self-employed SEP, SIMPLE, and qualified plans . 17 Self-employed health insurance deduction 18 Penalty on early withdrawal of savings . 19a Alimony paid . b Recipient's SSN \begin{tabular}{|l|l} \hline 11 & \\ \hline 12 & \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline 16 & \\ \hline 17 & \\ \hline 18 & \\ \hline 19a & \\ \hline & \\ \hline \end{tabular} c Date of original divorce or separation agreement (see instructions): 20 IRA deduction . 21 Student loan interest deduction 22 Reserved for future use 23 Archer MSA deduction 24 Other adjustments: a Jury duty pay (see instructions) . ............... b Deductible expenses related to income reported on line 81 from the rental of personal property engaged in for profit c Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m. d Reforestation amortization and expenses . e Repayment of supplemental unemployment benefits under the Trade Act of 1974 . f Contributions to section 501(c)(18)(D) pension plans g Contributions by certain chaplains to section 403(b) plans .. . discrimination claims (see instructions) . ............ i Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations j Housing deduction from Form 2555 . k Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041) z Other adjustments. List type and amount: \begin{tabular}{lll|l|l} 25 & Total other adjustments. Add lines 24 a through 24z.. & 25 & \\ 26 Add lines 11 through 23 and 25 . These are your adjustments to income. Enter here and on & & \\ & Form 1040 or 1040SR, line 10, or Form 1040-NR, line 10a.. & & \\ \hline \end{tabular} Alexander Smith and his wife Allison are married and will file a joint tax return for 2022. The Smiths live at 1234 Buena Vista Drive, Orlando, FL 32830. Alexander is a commuter airline pilot but took 6 months off from his job in 2022 to obtain a higher-level pilot's license. The Smiths have an 18-year-old son, Brad, who is enrolled in twelfth grade at the Walt Disney Prep School. The Smiths also have a 19-year-old daughter, Angelina, who is a part-time first-year student at Orange County Community College (OCCC). Angelina is married to Sean Shirker, who is 19 years old and also a part-time student at OCCC. Sean and Angelina have a 1-year-old child, Trask (Social Security number 115-45-7893). All the Shirkers live in an apartment near the Smiths. Angelina and Sean both also work part-time for Sean's wealthy grandfather as apprentices in his business. The Shirker's wages for the year were $50,000 which allowed them to pay all the personal expenses for themselves and Trask. Five years ago, Alexander divorced Jennifer Amistad (Social Security number 341-55-6789). Alexander pays Jennifer $200 per month in alimony under the divorce decree. Not included with the Smith's tax forms was interest from State of Florida bonds of $145.00. Alexander also received a Form W-2, Form 1099-INT, and Form 1099-DIV that is listed above. CORRECTED (if checked) Form 1099-DIV (keep for your records) www.irs.gov/Form10990IV Department of the Treasury - Internal Revenue Service CORRECTED (if checked) Form 1099-INT (keep for your records) www.irs.gov/Form10991NT Department of the Treasury - Internal Revenue Service Y= Wage and Tax 2021 Department of the Treasury-Internal Revenue Service Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Intemal Revenue Service. Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions): 3 Business income or (loss). Attach Schedule C . 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F. 7 Unemployment compensation 8 Other income: a Net operating loss b Gambling c Cancellation of debt d Foreign earned income exclusion from Form 2555 e Income from Form 8853 f Income from Form 8889 g Alaska Permanent Fund dividends h Jury duty pay . i Prizes and awards j Activity not engaged in for profit income k Stock options. I Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property . . . . m Olympic and Paralympic medals and USOC prize money (see instructions) n Section 951(a) inclusion (see instructions) o Section 951A(a) inclusion (see instructions) . p Section 461(l) excess business loss adjustment q Taxable distributions from an ABLE account (see instructions) r Scholarship and fellowship grants not reported on Form W-2 s Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d. . . . . . . . . . . . . . . . . . . t Pension or annuity from a nonqualifed deferred compensation plan or a nongovernmental section 457 plan u Wages earned while incarcerated z Other income. List type and amount: Schedule 1 (Form 1040) 2022 Page 2 Part II Adjustments to Income 11 Educator expenses . . . . . 12 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 13 Health savings account deduction. Attach Form 8889 14 Moving expenses for members of the Armed Forces. Attach Form 3903 15 Deductible part of self-employment tax. Attach Schedule SE 16 Self-employed SEP, SIMPLE, and qualified plans . 17 Self-employed health insurance deduction 18 Penalty on early withdrawal of savings . 19a Alimony paid . b Recipient's SSN \begin{tabular}{|l|l} \hline 11 & \\ \hline 12 & \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline 16 & \\ \hline 17 & \\ \hline 18 & \\ \hline 19a & \\ \hline & \\ \hline \end{tabular} c Date of original divorce or separation agreement (see instructions): 20 IRA deduction . 21 Student loan interest deduction 22 Reserved for future use 23 Archer MSA deduction 24 Other adjustments: a Jury duty pay (see instructions) . ............... b Deductible expenses related to income reported on line 81 from the rental of personal property engaged in for profit c Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m. d Reforestation amortization and expenses . e Repayment of supplemental unemployment benefits under the Trade Act of 1974 . f Contributions to section 501(c)(18)(D) pension plans g Contributions by certain chaplains to section 403(b) plans .. . discrimination claims (see instructions) . ............ i Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations j Housing deduction from Form 2555 . k Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041) z Other adjustments. List type and amount: \begin{tabular}{lll|l|l} 25 & Total other adjustments. Add lines 24 a through 24z.. & 25 & \\ 26 Add lines 11 through 23 and 25 . These are your adjustments to income. Enter here and on & & \\ & Form 1040 or 1040SR, line 10, or Form 1040-NR, line 10a.. & & \\ \hline \end{tabular}