Using 2019 tax code prepare the 1040
X Microsoft Word - Tax Return PIX Home Page - VITA/TCE Springt TaxSlayer Pro C Basic Informatii X am.xythos.prod/5849b9bae4172/9418541?response-content-dispositioninline%3B%20filename%2A%3DUTF-8%27%27Tax% Facts: 1. Jennifer Rena (single) was employed for most of 2019 as a violinist for Sixth Symphony. Inc., a classical music string sextet. Jennifer lives east of Atlanta, in a home that she purchased 5 years ago. She lives with the other five members of Sixth Symphony, and as such, she provides more than half of the support for each of the other members. Each of the group members receives the same pay from Sixth Symphony as Jennifer Details about the group members, along with additional information provided by Jennifer, are as follows: Jennifer does not want to contribute to the presidential election campaign. o Jennifer lives at 1234 W. Ponce de Leon Avenue, Decatur, GA 30030. Jennifer's birthday is 3/3/1993 and her Social Security number is 123-45-6789 O Brooke Blakely (violin) is 25 years old and her Social Security number is 987-65-4321. o Norma Rena (viola) is 22 years old and Jennifer's sister. Her Social Security number is 123-99.9999. o Diane Jones (viola) is 21 years old and her Social Security number is 987-88-8888 Lauren Rena (cello) is 18 years old and Jennifer's other sister. Her Social Security number is 123-77-7777. o Teagan Traynor (cello) is 20 years old and her Social Security number is 987-66-6666. Jennifer does not have any foreign bank accounts or trusts. 2. Jennifer received a Form W-2 from Sixth Symphony, Inc. that contained the following information: Line 1 Wages, tips, other compensation: Line 2 Federal income tax withheld: Line 3 Social Security wages: Line 4 Social Security tax withheld: Line 5 Medicare wages and tips Line 6 Medicare tax withheld Line 16 State wages, tips, etc: Line 17 State income tax withheld $77,950 6,942 81.000 5.022 81.000 1,175 77.950 4.670 3. In 2019. Jennifer became bored with classical music On December 6, 2019, she decided to become a fiddler in the house band at Eddie's Attic in Decatur, after discovering that it might be the best place to see live music in the country. On this date, she quit Sixth Symphony and threw all of her (former) bandmates out of her house 4. Jennifer did not receive unemployment does not apply if you quit), and she did gigs for January 2020. She receives 54 on after quitting her job (unemployment home at all in 2019. She scheduled 3 ormance, paid after the show - O e E 9 D = Microsoft Word - Tax Return x Home Page - VITATE Spring x layer Pro Basic Informatie x C Compre my/blackboard seamaythos prod/5849094172/9418541?response content dispositioninline%3B%20filename%2A%3DUTF-8%27%27TaxX2520Re 4. Jennifer did not receive unemployment compensation after quitting her job unemployment does not apply if you quit), and she did not work from home at all in 2019. She scheduled 3 gigs for January 2020. She receives $4,500 per performance, paid after the show. 5. Jennifer received 5852 in interest from Clarke County a county in Georgia) bonds, S654 interest from Us Weekly Corporation bonds, and S152 interest from a savings account at Cowell Credit Union. None of the interest is from private activity bonds. She received an 5858 dividend from X-Factor Inc. and a 5924 dividend from Billboard, Inc. Both dividends are qualified dividends. These amounts were reported to her by cach company on the proper form 1099 6. In 2019. Jennifer and both of her sisters decided that it was worth it to take part-time college (at least halftime classes in addition to their performing arts jobs. As the oldest sister Jennifer paid for all of the classes for her and her sisters Jennifer already has a degree, so she took master classes (tuition of $5,300) while her sisters both took undergraduate classes (tuition of S4,750 each). These amounts were all properly reported on Form 1098-T. All three sisters attend Georgia Gwinnett College (identifying number is 34-5555555) Jennifer took a $5,000 loan out to pay for the expenses for her masters classes she did not take loans out to pay for her sisters classes. The loan was outstanding all year and Jennifer paid interest at a rate of 6 7. Jennifer paid $6.150 in mortgage interest to Cowell Credit Union during the year (reported to her on Form 1098). The outstanding balance on the loan is 5237.602. She also paid 53 655 in real property during the car to the tinguthority (ie not into scrow s chanso n She purchased the LULU dock on Dec hares of Comcast CMCSA Stack o CMCSA for $15 ahaleon A for S191 athare on October 10, 2019 013 for $60 a share. She also sold 250 April 2019. She purchased the n nifer brokerage reported stock basis n I Oie 93 Microsoft Word - Tax Return x Home Page - VITA/TCE Springl * TuSlayer Pro - Basic Informati X C Comprehe ckboardeamwythos prod/5849694172/94185417response-content-dispositioninline%30%20filename%2A%3DUTF-0%27%2762520Retu 8. Jennifer sold 40 shares of Lululemon (LULU) stock for $191 a share on October 10, 2019. She purchased the LULU stock on December 13, 2013, for $60 a share. She also sold 250 shares of Comcast (CMCSA) stock for $40 a share on April 1, 2019. She purchased the CMCSA stock for $35 a share on April 25, 2018. Jennifer's brokerage reported stock basis amounts to the IRS and to her on Form 1099-B. She repurchased 25 shares of LULU on December 31, 2019 for $175 a share. 9. In 2019, Jennifer had a number of medical issues. The following is a record of Jennifer's medical expenses during the year. The amounts reported are amounts paid in excess of insurance reimbursements $8,100 1,350 Hospital stay Cement mixer injury Prescription medications Over-the-counter medications Doctor and dentist visits Physical therapy 952 1.050 1.511 9. Sixth Symphony provided Jennifer with health insurance which complied with the Allordable Care Act for the entire year 10. In September of 2019, while experimenting with her new riddling techniques, Jennifer's amp caught fire, destroying the amp, her fiddle, and burning down a swath of hickory trees in her back yard. The total damage was 59,750 and was not covered by insurance 11. Jennifer contributed S560 cash to the P her with receipts for her donation. The M I Society during the year. They provided walified public charity Microsoft Word Tax Return PX Home Page - VITA/TCE Spring x 3 TuSlayer Pro Basic Informatix Comprehensive ard.leam.xythos.prod/584969bae4172/9418541 response content dispositioninline%3B%20filename%2A%3DUTF-8%27%27Tax%2520Return 11. Jennifer contributed $560 cash to the Pitbull Rescue Society during the year. They provided her with receipts for her donation. The Society is a qualified public charity 12. Although Sixth Symphony provides its employees with a retirement plan (Jennifer contributed $3,016 to her traditional 401(k); this amount is already excluded from her salary listed above), Jennifer wants to contribute S5,700 to an IRA for 2019. (Recall IRA contributions can be made up to the date of the filing of the return, but not after April 15). Determine what type(s) of IRA Jennifer should contribute to assume she wants to minimize her 2019 tax liability) and, if necessary, report this appropriately on the tax forms. If there is no place to report the IRA(S) that Jennifer selected on the tax forms, be sure to clearly state the selection in your supporting work/calculation sheets that you submit with the return 13. Jennifer wants any overpayment of taxes refunded to her by check (not direct deposit). If Jennifer has an underpayment, you do not need to compute any penalty. 14. Jennifer also provided you with a shoebox full of receipts for the following amounts paid or received in the current tax year. - A tiara she wears at home (S1.100) - Utilities at her house (S610/month) Gifts from her admirers and fans (S20,000) A winning lottery ticket from Powerball (S500) (she paid $2 for the ticket) A plane ticket for a vacation she took to Miami (5500) She underpand her state taxes for 2018 and was required to pay an additional S180 in state income tax when she filed her return in 2019. She did not owe any penalties or interest on this underpayment X Microsoft Word - Tax Return PIX Home Page - VITA/TCE Springt TaxSlayer Pro C Basic Informatii X am.xythos.prod/5849b9bae4172/9418541?response-content-dispositioninline%3B%20filename%2A%3DUTF-8%27%27Tax% Facts: 1. Jennifer Rena (single) was employed for most of 2019 as a violinist for Sixth Symphony. Inc., a classical music string sextet. Jennifer lives east of Atlanta, in a home that she purchased 5 years ago. She lives with the other five members of Sixth Symphony, and as such, she provides more than half of the support for each of the other members. Each of the group members receives the same pay from Sixth Symphony as Jennifer Details about the group members, along with additional information provided by Jennifer, are as follows: Jennifer does not want to contribute to the presidential election campaign. o Jennifer lives at 1234 W. Ponce de Leon Avenue, Decatur, GA 30030. Jennifer's birthday is 3/3/1993 and her Social Security number is 123-45-6789 O Brooke Blakely (violin) is 25 years old and her Social Security number is 987-65-4321. o Norma Rena (viola) is 22 years old and Jennifer's sister. Her Social Security number is 123-99.9999. o Diane Jones (viola) is 21 years old and her Social Security number is 987-88-8888 Lauren Rena (cello) is 18 years old and Jennifer's other sister. Her Social Security number is 123-77-7777. o Teagan Traynor (cello) is 20 years old and her Social Security number is 987-66-6666. Jennifer does not have any foreign bank accounts or trusts. 2. Jennifer received a Form W-2 from Sixth Symphony, Inc. that contained the following information: Line 1 Wages, tips, other compensation: Line 2 Federal income tax withheld: Line 3 Social Security wages: Line 4 Social Security tax withheld: Line 5 Medicare wages and tips Line 6 Medicare tax withheld Line 16 State wages, tips, etc: Line 17 State income tax withheld $77,950 6,942 81.000 5.022 81.000 1,175 77.950 4.670 3. In 2019. Jennifer became bored with classical music On December 6, 2019, she decided to become a fiddler in the house band at Eddie's Attic in Decatur, after discovering that it might be the best place to see live music in the country. On this date, she quit Sixth Symphony and threw all of her (former) bandmates out of her house 4. Jennifer did not receive unemployment does not apply if you quit), and she did gigs for January 2020. She receives 54 on after quitting her job (unemployment home at all in 2019. She scheduled 3 ormance, paid after the show - O e E 9 D = Microsoft Word - Tax Return x Home Page - VITATE Spring x layer Pro Basic Informatie x C Compre my/blackboard seamaythos prod/5849094172/9418541?response content dispositioninline%3B%20filename%2A%3DUTF-8%27%27TaxX2520Re 4. Jennifer did not receive unemployment compensation after quitting her job unemployment does not apply if you quit), and she did not work from home at all in 2019. She scheduled 3 gigs for January 2020. She receives $4,500 per performance, paid after the show. 5. Jennifer received 5852 in interest from Clarke County a county in Georgia) bonds, S654 interest from Us Weekly Corporation bonds, and S152 interest from a savings account at Cowell Credit Union. None of the interest is from private activity bonds. She received an 5858 dividend from X-Factor Inc. and a 5924 dividend from Billboard, Inc. Both dividends are qualified dividends. These amounts were reported to her by cach company on the proper form 1099 6. In 2019. Jennifer and both of her sisters decided that it was worth it to take part-time college (at least halftime classes in addition to their performing arts jobs. As the oldest sister Jennifer paid for all of the classes for her and her sisters Jennifer already has a degree, so she took master classes (tuition of $5,300) while her sisters both took undergraduate classes (tuition of S4,750 each). These amounts were all properly reported on Form 1098-T. All three sisters attend Georgia Gwinnett College (identifying number is 34-5555555) Jennifer took a $5,000 loan out to pay for the expenses for her masters classes she did not take loans out to pay for her sisters classes. The loan was outstanding all year and Jennifer paid interest at a rate of 6 7. Jennifer paid $6.150 in mortgage interest to Cowell Credit Union during the year (reported to her on Form 1098). The outstanding balance on the loan is 5237.602. She also paid 53 655 in real property during the car to the tinguthority (ie not into scrow s chanso n She purchased the LULU dock on Dec hares of Comcast CMCSA Stack o CMCSA for $15 ahaleon A for S191 athare on October 10, 2019 013 for $60 a share. She also sold 250 April 2019. She purchased the n nifer brokerage reported stock basis n I Oie 93 Microsoft Word - Tax Return x Home Page - VITA/TCE Springl * TuSlayer Pro - Basic Informati X C Comprehe ckboardeamwythos prod/5849694172/94185417response-content-dispositioninline%30%20filename%2A%3DUTF-0%27%2762520Retu 8. Jennifer sold 40 shares of Lululemon (LULU) stock for $191 a share on October 10, 2019. She purchased the LULU stock on December 13, 2013, for $60 a share. She also sold 250 shares of Comcast (CMCSA) stock for $40 a share on April 1, 2019. She purchased the CMCSA stock for $35 a share on April 25, 2018. Jennifer's brokerage reported stock basis amounts to the IRS and to her on Form 1099-B. She repurchased 25 shares of LULU on December 31, 2019 for $175 a share. 9. In 2019, Jennifer had a number of medical issues. The following is a record of Jennifer's medical expenses during the year. The amounts reported are amounts paid in excess of insurance reimbursements $8,100 1,350 Hospital stay Cement mixer injury Prescription medications Over-the-counter medications Doctor and dentist visits Physical therapy 952 1.050 1.511 9. Sixth Symphony provided Jennifer with health insurance which complied with the Allordable Care Act for the entire year 10. In September of 2019, while experimenting with her new riddling techniques, Jennifer's amp caught fire, destroying the amp, her fiddle, and burning down a swath of hickory trees in her back yard. The total damage was 59,750 and was not covered by insurance 11. Jennifer contributed S560 cash to the P her with receipts for her donation. The M I Society during the year. They provided walified public charity Microsoft Word Tax Return PX Home Page - VITA/TCE Spring x 3 TuSlayer Pro Basic Informatix Comprehensive ard.leam.xythos.prod/584969bae4172/9418541 response content dispositioninline%3B%20filename%2A%3DUTF-8%27%27Tax%2520Return 11. Jennifer contributed $560 cash to the Pitbull Rescue Society during the year. They provided her with receipts for her donation. The Society is a qualified public charity 12. Although Sixth Symphony provides its employees with a retirement plan (Jennifer contributed $3,016 to her traditional 401(k); this amount is already excluded from her salary listed above), Jennifer wants to contribute S5,700 to an IRA for 2019. (Recall IRA contributions can be made up to the date of the filing of the return, but not after April 15). Determine what type(s) of IRA Jennifer should contribute to assume she wants to minimize her 2019 tax liability) and, if necessary, report this appropriately on the tax forms. If there is no place to report the IRA(S) that Jennifer selected on the tax forms, be sure to clearly state the selection in your supporting work/calculation sheets that you submit with the return 13. Jennifer wants any overpayment of taxes refunded to her by check (not direct deposit). If Jennifer has an underpayment, you do not need to compute any penalty. 14. Jennifer also provided you with a shoebox full of receipts for the following amounts paid or received in the current tax year. - A tiara she wears at home (S1.100) - Utilities at her house (S610/month) Gifts from her admirers and fans (S20,000) A winning lottery ticket from Powerball (S500) (she paid $2 for the ticket) A plane ticket for a vacation she took to Miami (5500) She underpand her state taxes for 2018 and was required to pay an additional S180 in state income tax when she filed her return in 2019. She did not owe any penalties or interest on this underpayment
