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using the appropriate 2020 tax tables if necessary. Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in
using the appropriate 2020 tax tables if necessary.
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Kathy and Rob Wright obtained a divorce effective May 1, 2018, and there have been no revisions to the original agreement since that time in accordance with the divorce decree, Rob was required to pay $2.450 per month until their only child turns 18; then the payments would be reduced to $1,500 per month Kathy has full custody of the child and appropriately takes the dependent deduction and child credit Furthermore, Rob was to transfer title of their house, which had a cost of $250,000 and a fair value of $410,000 on the date of transfer to Kathy and was to continue making the monthly mortgage payments of S1,525 on behalf of Kathy. Rob works for a large oil distributor in Santa Fe, NM, and after the divorce lives at 1132 Northgate Avenue, Santa Fe, NM 87501 Kathy's social security number is 412-34-5671 (date of birth 11/4/1986), and Rob's social security number is 412-34-5670 (date of birth 8/14/1984) His W-2 contained the following information Wages (box 1) - $ 85,100.25 Federal H (box2) $ 5,225.31 Social security wages (box 3) $ 85,100.25 Social security W/H (box 4) 5 5.276.22 Medicare wages (box 5) - $ 85,100.25 Medicare H (box) $ 1,233.95 He also received a Form 1099 INT from First New Mexico Bank with $256 of interest income in box 1. In addition, Rob made a timely $2,500 contribution to his new HSA account Required: Prepare a 2020 Form 1040 and a Schedule as well as a Form 8889 for Rob Rob did not receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during 2020 (Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Input all the values os positive numbers, Instructions can be found on certain cells within the forms.) Step by Step Solution
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