Use the information below from Form W-2, 1099-INT, 1099-DIV and the assignment below to complete the Qualified Dividends and Capital Gain Tax Worksheet at the bottom:
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. Qualified Dividends and Capital Gain Tax Worksheet-Line 16 Keep for Your Records 1. Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Eamed Income Tax Worksheet ................................. 1. 2. Enter the amount from Form 1040 or 1040-SR, line 3a 2. 3. Are you filing Schedule D?* Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or 16 is blank or a loss, enter -0 -. No. Enter the amount from Form 1040 or 1040-SR, line 7. 4. Add lines 2 and 3 5. Subtract line 4 from line 1 . If zero or less, enter -0 - 5. 6. Enter: $41,675 if single or married filing separately. $41,675 if single or married iling sc $83,350 if married filing jointly or q 7. Enter the smaller of lise 1 or line 6 6. 7. 9. Subtract line 8 from line 7 . This amount is taxed at 0% 9. 10. Enter the smaller of line 1 or line 4 10. 11. Enter the amount from line 9 11. 12. Subtract line 11 from line 10 12. 13. Enter: $459,750 if single, $45,750 if single, $58,600 if married filing separately, $488,200 if married filing jountly or qualifying surviving spouse, $48 if head of household. 13. 14. Enter the smaller of line 1 or line 13 14. 15. Add lines 5 and 9 15. 16. Subtract line 15 from line 14 . If zero or less, enter 0 16. 17. Enter the smaller of line 12 or line 16 17. 18. Multiply line 17 by 15%(0.15) 18. 19. Add lines 9 and 17 20. Subtract line 19 from line 10 22. Figure the tax on the amount on line 5 . If the amount on line 5 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 5 is $100,000 or more, use the Tax Computation 23. Add lines 18,21 , and 22 22. 23. 24. Figure the tax on the amount on line 1 . If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet 25. Tax on all taxable income. Enter the smaller of line 23 or 24 . Also include this amount on the entry space on Form 1040 or 1040-SR, line 16. If you are filing Form 2555 , don't enter this amount on the entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet 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. Qualified Dividends and Capital Gain Tax Worksheet-Line 16 Keep for Your Records 1. Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Eamed Income Tax Worksheet ................................. 1. 2. Enter the amount from Form 1040 or 1040-SR, line 3a 2. 3. Are you filing Schedule D?* Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or 16 is blank or a loss, enter -0 -. No. Enter the amount from Form 1040 or 1040-SR, line 7. 4. Add lines 2 and 3 5. Subtract line 4 from line 1 . If zero or less, enter -0 - 5. 6. Enter: $41,675 if single or married filing separately. $41,675 if single or married iling sc $83,350 if married filing jointly or q 7. Enter the smaller of lise 1 or line 6 6. 7. 9. Subtract line 8 from line 7 . This amount is taxed at 0% 9. 10. Enter the smaller of line 1 or line 4 10. 11. Enter the amount from line 9 11. 12. Subtract line 11 from line 10 12. 13. Enter: $459,750 if single, $45,750 if single, $58,600 if married filing separately, $488,200 if married filing jountly or qualifying surviving spouse, $48 if head of household. 13. 14. Enter the smaller of line 1 or line 13 14. 15. Add lines 5 and 9 15. 16. Subtract line 15 from line 14 . If zero or less, enter 0 16. 17. Enter the smaller of line 12 or line 16 17. 18. Multiply line 17 by 15%(0.15) 18. 19. Add lines 9 and 17 20. Subtract line 19 from line 10 22. Figure the tax on the amount on line 5 . If the amount on line 5 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 5 is $100,000 or more, use the Tax Computation 23. Add lines 18,21 , and 22 22. 23. 24. Figure the tax on the amount on line 1 . If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet 25. Tax on all taxable income. Enter the smaller of line 23 or 24 . Also include this amount on the entry space on Form 1040 or 1040-SR, line 16. If you are filing Form 2555 , don't enter this amount on the entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet
