You have been asked to complete a tax return for James Lawrence, (SSN: 103-04-1950, DOB: 9/25/78) and Maria Lawrence (SSN: 103-03-1950, DOB: 4/18/79). The Lawrences live with their daughter, Erika (SSN: 103-05-1950, DOB: 03/18/05). James phone number is 919-555-1001. They all had health insurance the entire year.

James is an engineer for a local firm. He has a W-2 from his employer with $92,000 in box 1. The W-2 reflects $12,000 in federal income tax withheld and $5,000 in NC tax withheld. Appropriate amounts were withheld for social security and Medicare. James is covered by a retirement plan. The entire family receives health insurance from James employer.

Maria is a neo-natal nurse. She has a W-2 from her employer with $100,000 in box 1. The W-2 reflects $15,000 in federal income tax withheld and $6,000 in NC state income taxes. Appropriate amounts were withheld for social security and Medicare.

The Lawrences own a home at 123 Hillsborough Street in Raleigh, NC 27695. They have a mortgage on the home for $500,000 and paid $24,500 in mortgage interest in 2020 according to the form 1098 they provided to you. The taxes on their vehicles were $280 and the tax on their home was $7,200.

The Lawrences also made $6,000 of charitable donations to 501(c)(3) organizations in cash.

James sold shares of stock on 11/15/2020 and the proceeds were $12,000. James paid $8,000 for these shares when he originally purchased them on 6/15/2015.

Please complete the Lawrences 2020 federal income tax return (NOT the NC income tax return) using Form 1040 and any applicable accompanying schedules. You may fill in the forms either by hand or type them in a fillable pdf format and e-mail them to me.