Using Form 1040 page 1, calculate tax liability. You are to calculate two different tax liabilities. The first assumes that capital gain is long term. The second calculation assumes that capital gain is short term. You must show all steps in each calculation with explanations for each step.

(99) 1040 2020 Filing Status Check only one box. Department of the Treasury Internal Revenue Service Federal Income Tax Forecast Single Married filing jointly If you checked the MFS box, enter the name of spouse. a child but not your dependent. OMB No. 1545-0074 IRSUse Only-Do notwrite or staple in this space Married filing separately (MFS) | Head of Household (HOH) Qualifying Widow(er) (QW) If you checked the HOH or QW box, enter the child's name if the qualifying person is Your first name and middle initial Last name Able Able If joint return, spouse's first name and middle initial Last name Abigial Able Home address (number and street). If you have a P.O. box, see instructions. 1000 Main Street City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Miami, FL 33127 Foreign country name Foreign province/state/county Your social security number 111-11-1111 Spouse's social security number 222-22-2222 Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse Apt. no. Foreign postal code If more than fou instructions and here Standard Deduction Someone can claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien Age / Blindness You: Were born before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 Is blind (2) Social security number (3) Relationship to you Dependents (see instructions): (1) First name Last name if qualified for (see instructions): Child Tax Credit Credit for other dependents Jacob Able 333-33-333 1 2b 175,000 0 1,600 3b 4b 4d 5b 6 7a Standard 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Deduction for -- 2 a Tax-exempt interest 2a b Taxable interest. Attach Sch. B. if req'd. Single or married 3a Qualified dividends 3a 800 b Ordinary dividends. Attach Sch B. if reqld. $12,400 4 a IRA Distributions 4a b Taxable amount Married fiing C Pensions and annuities 4c d Taxable amount jointly or Qualifying 5 a Social security benefits D 5 b Taxable amount widow(er) 6 Capital gain or loss). Attach Schedule D if required. If not required, check here $24,800 7 a Other income from Schedule 1, line 9 Head of b Add lines 1, 26, 35, 4b, 4d, 55, 6, and 7a. This is your total income household 8 a Adjustments to income from Schedule 1, line 22 $18,650 b Subtract line 8a from line 7b. This is your adjusted gross income If you checked 9 Standard deduction or itemized deductions (from Schedule A) 9 72,654 any box under 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 5,458 Standard Deduction, 11 a Add lines 9 and 10 see instructions. b Taxable income. Subtract lines 11a from line 8b. If zero or less, enter-O- Cat. No. 11320B For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2020) 7b 8 10,000 32,288 218,888 25,928 192,960 8b 11a 78,112 114,848 11b Page 2 8814 2 12b 13b 14 15 16 17 If you have a qualifying child, attach Sch. EIC. If you have nontaxable a 12 a Tax (see inst) Check if any from Form(s): 4972 3 12a b Add Schedule 2, line 3, and line 12a and enter the total 13 a Child tax credit or credit for other dependents | 13a b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 12b. If zero or less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: Eamed income credit (EIC) ! 18a b Additional child tax credit. Attach Schedule 8812 18b American opportunity credit from Form 8863, line 8 18C d Schedule 3, line 14 18d Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21 a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here b Routing number Checking d Account number 22 Amount of line 20 you want applied to your 2021 estimated tax 22 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) 24 Do you want to allow another person to discuss this retum with the IRS (see instructions)? 0 combat pay, see instructions. e . 0 0 18e 19 20 21a Refund Directdeposit? See instructions c Type: Savings 23 0 Yes. Complete below. Amount You Owe Third Party Designee (Other than paid preparer) Sign Here Jointreturn? See instructions No Designee's Phone Personal identification name no. number (PIN) Under penalties of perjury, Ideclare that have examined this return and accompanying schedules and statements, and to the bestofmy knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Your occupation If the IRS sent you an Identity Prot. PIN, enter here Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an Identity Prot. PIN, enter here Date Keep a copy for your records Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if: 3rd Party Designee Paid Preparers Use Only Firm's name Phone no. Self-employed Firm's address Firm's EIN Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2020) (99) 1040 2020 Filing Status Check only one box. Department of the Treasury Internal Revenue Service Federal Income Tax Forecast Single Married filing jointly If you checked the MFS box, enter the name of spouse. a child but not your dependent. OMB No. 1545-0074 IRSUse Only-Do notwrite or staple in this space Married filing separately (MFS) | Head of Household (HOH) Qualifying Widow(er) (QW) If you checked the HOH or QW box, enter the child's name if the qualifying person is Your first name and middle initial Last name Able Able If joint return, spouse's first name and middle initial Last name Abigial Able Home address (number and street). If you have a P.O. box, see instructions. 1000 Main Street City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Miami, FL 33127 Foreign country name Foreign province/state/county Your social security number 111-11-1111 Spouse's social security number 222-22-2222 Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse Apt. no. Foreign postal code If more than fou instructions and here Standard Deduction Someone can claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien Age / Blindness You: Were born before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 Is blind (2) Social security number (3) Relationship to you Dependents (see instructions): (1) First name Last name if qualified for (see instructions): Child Tax Credit Credit for other dependents Jacob Able 333-33-333 1 2b 175,000 0 1,600 3b 4b 4d 5b 6 7a Standard 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Deduction for -- 2 a Tax-exempt interest 2a b Taxable interest. Attach Sch. B. if req'd. Single or married 3a Qualified dividends 3a 800 b Ordinary dividends. Attach Sch B. if reqld. $12,400 4 a IRA Distributions 4a b Taxable amount Married fiing C Pensions and annuities 4c d Taxable amount jointly or Qualifying 5 a Social security benefits D 5 b Taxable amount widow(er) 6 Capital gain or loss). Attach Schedule D if required. If not required, check here $24,800 7 a Other income from Schedule 1, line 9 Head of b Add lines 1, 26, 35, 4b, 4d, 55, 6, and 7a. This is your total income household 8 a Adjustments to income from Schedule 1, line 22 $18,650 b Subtract line 8a from line 7b. This is your adjusted gross income If you checked 9 Standard deduction or itemized deductions (from Schedule A) 9 72,654 any box under 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 5,458 Standard Deduction, 11 a Add lines 9 and 10 see instructions. b Taxable income. Subtract lines 11a from line 8b. If zero or less, enter-O- Cat. No. 11320B For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2020) 7b 8 10,000 32,288 218,888 25,928 192,960 8b 11a 78,112 114,848 11b Page 2 8814 2 12b 13b 14 15 16 17 If you have a qualifying child, attach Sch. EIC. If you have nontaxable a 12 a Tax (see inst) Check if any from Form(s): 4972 3 12a b Add Schedule 2, line 3, and line 12a and enter the total 13 a Child tax credit or credit for other dependents | 13a b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 12b. If zero or less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: Eamed income credit (EIC) ! 18a b Additional child tax credit. Attach Schedule 8812 18b American opportunity credit from Form 8863, line 8 18C d Schedule 3, line 14 18d Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21 a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here b Routing number Checking d Account number 22 Amount of line 20 you want applied to your 2021 estimated tax 22 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) 24 Do you want to allow another person to discuss this retum with the IRS (see instructions)? 0 combat pay, see instructions. e . 0 0 18e 19 20 21a Refund Directdeposit? See instructions c Type: Savings 23 0 Yes. Complete below. Amount You Owe Third Party Designee (Other than paid preparer) Sign Here Jointreturn? See instructions No Designee's Phone Personal identification name no. number (PIN) Under penalties of perjury, Ideclare that have examined this return and accompanying schedules and statements, and to the bestofmy knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Your occupation If the IRS sent you an Identity Prot. PIN, enter here Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an Identity Prot. PIN, enter here Date Keep a copy for your records Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if: 3rd Party Designee Paid Preparers Use Only Firm's name Phone no. Self-employed Firm's address Firm's EIN Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2020)