Gaytor-C03-v4 - Chapter 3 v4 PDF

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Chapter 3 v4...

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Chapter 3– Cumulative Software Problem Answer

3-1

Form

Comprehensive Problem 2

1040 U.S. Individual Income Tax Return 2019 (99)

Department of the Treasury—Internal Revenue Service

Filing Status

Single

Check only one box.

x

Married filing jointly

Married filing separately (MFS)

OMB No. 1545-0074

IRS Use Only—Do not write or staple in this space.

Head of household (HOH)

Qualifying widow(er) (QW)

If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child’s name if the qualifying person is

Albert T.

Gaytor

266 51 1966

OF July 11, 2019

If joint return, spouse’s first name and middle initial

Last name

Allison A.

Spouse’s social security number

266 34 1967

Gaytor

Home address (number and street). If you have a P.O. box, see instructions.

Apt. no.

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

12340 Cocoshell Road

City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).

Coral Gables, FL 33134 Foreign country name

Standard Deduction Age/Blindness

Foreign province/state/county

Someone can claim:

You as a dependent

You:

• Married filing jointly or Qualifying widow(er), $24,400 • Head of household, $18,350 • If you checked any box under Standard Deduction, see instructions.

Your spouse as a dependent

Were born before January 2, 1955

Are blind

Was born before January 2, 1955

Spouse:

Is blind

(see instructions): Credit for other dependents

Child tax credit

Last name

Crocker

• Single or Married filing separately, $12,200

If more than four dependents,

Spouse itemizes on a separate return or you were a dual-status alien

(1) First name

Standard Deduction for—

Foreign postal code

Gaytor

261 55 1212

1

Wages, salaries, tips, etc. Attach Form(s) W-2 .

2a

Tax-exempt interest .

3a

Qualified dividends .

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3a

4a

IRA distributions .

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4a

b Taxable amount

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4b

Pensions and annuities .

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4c

d Taxable amount

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4d

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751 1,031

2a

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x

Son

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Social security benefits .

b Taxable amount

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8a

Adjustments to income from Schedule 1, line 22

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9

Standard deduction or itemized deductions (from Schedule A) .

b

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9

Qualified business income deduction. Attach Form 8995 or Form 8995-A .

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10

Add lines 9 and 10 .

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Taxable income. Subtract line 11a from line 8b

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11a

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10

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b

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Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income

7a

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1

3b

Capital gain or (loss). Attach Schedule D if required. If not required, check here

5a

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b Ordinary dividends. Attach Sch. B if required

5a

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2b

6

Other income from Schedule 1, line 9

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b Taxable interest. Attach Sch. B if required

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For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.

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5b

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7a

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8a

9,633 78,868 11,500 67,368

24,400

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67,024 1,020 1,191

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Cat. No. 11320B

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11a .

11b

24,400 42,968 Form

1040 (2019)

Chapter 3– Cumulative Software Problem Answer

3-2

Comprehensive Problem 2, cont. Page 2

Form 1040 (2019) 12a b 13a b 14

Tax (see inst.) Check if any from Form(s): 1

8814 2

4972 3

Add Schedule 2, line 3, and line 12a and enter the total

4,643

12a

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Add Schedule 3, line 7, and line 13a and enter the total

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Subtract line 13b from line 12b. If zero or less, enter -0-

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14

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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

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4,643

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Child tax credit or credit for other dependents .

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500

13a

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500 4,143 4,143 7,389 (a)

DRAFT AS OF July 11, 2019 DO NOT FILE

• If you have a qualifying child, attach Sch. EIC. • If you have nontaxable combat pay, see instructions.

Refund

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17

Other payments and refundable credits:

18

a

Earned income credit (EIC) .

b

Additional child tax credit. Attach Schedule 8812

c

American opportunity credit from Form 8863, line 8 .

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18a

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18b

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18c

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Schedule 3, line 14 .

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Add lines 18a through 18d. These are your total other payments and refundable credits

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18d

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19

Add lines 17 and 18e. These are your total payments .

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20

If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid .

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21a

Amount of line 20 you want refunded to you. If Form 8888 is attached, check here

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22

Amount of line 20 you want applied to your 2020 estimated tax .

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Estimated tax penalty (see instructions) .

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7,389 3,246 3,246

20

Direct deposit?

Amount You Owe Third Party Designee (Other than paid preparer)

Here Joint return? See instructions. Keep a copy for your records.

Paid Preparer Use Only

24

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Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions.

Yes. Complete below.

No

Designee’s

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my 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.

If the IRS sent you an Identity Protection PIN, enter it here (see inst.)

Your signature

Date

Your occupation

Spouse’s signature. If a joint return, both must sign.

Date

Spouse’s occupation

Boat Captain Auto Parts Store Owner Phone no. Preparer’s name

Email address Preparer’s signature

(a) $7,389 = $5,634 (W-2) + $1,600 (W-2G) + $155 (1099-G)

Date

If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) PTIN

Check if: 3rd Party Designee Self-employed

Chapter 3– Cumulative Software Problem Answer

3-3

Comprehensive Problem 2, cont. SCHEDULE 1 (Form 1040 or 1040-SR)

OMB No. 1545-0074

Additional Income and Adjustments to Income

2019

Department of the Treasury Internal Revenue Service

Attachment Sequence No. 01

Name(s) shown on Form 1040 or 1040-SR

Your social security number

Albert T. and Allison A. Gaytor Part I

266-51-1966

Additional Income

DRAFT AS OF July 11, 2019 DO NOT FILE

1 2a

Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 2a

4 5 6 7

Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . . Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . .

4 5 6 7

4,050

9

6,172 9,633

Gambling winnings and hobby income

9

Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a

Part II

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Adjustments to Income

Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . . . . 13 Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . 14 Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . 15 Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . . . . 16 Self-employed health insurance deduction . . . . . . . . . . . . . . . . . . . . 17 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . 18a Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11

(589)

10

11 12 13 14 15 16 17 18a

11,500

. . . . . . . . . 20 . . . . . . . . . 21 here and on Form 1040 or . . . . . . . . . 22

11,500

667 34 9224 7/1/2015 20 21 22

Student loan interest deduction . . . . . . . . . . . . Reserved for future use . . . . . . . . . . . . . . . Add lines 10 through 21. These are your adjustments to income. 1040-SR, line 8a . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see your tax return instructions.

. . . . Enter . .

Cat. No. 71479F

Schedule 1 (Form 1040 or 1040-SR) 2019

Chapter 3– Cumulative Software Problem Answer

3-4

Comprehensive Problem 2, cont. SCHEDULE C (Form 1040 or 1040-SR)

OMB No. 1545-0074

Profit or Loss From Business

2019

(Sole Proprietorship)

Department of the Treasury Internal Revenue Service (99)

Attachment Sequence No. 09

Name of proprietor

Social security number (SSN)

Allison A. Gaytor

266-34-1967 B Enter code from instructions

Principal business or profession, including product or service (see instructions)

A

DRAFT AS OF August 7, 2019 DO NOT FILE

4 4 1 3 0 0

Retail Store—Auto Accessories

Employer ID number (EIN) (see instr.)

9 8 7 3 2 1 6 5 4

Toge Pass

617 Crandon Boulevard Key Biscayne, FL 33149

x

Did you “materially participate” in the operation of this business during 2019? If “No,” see instructions for limit on losses

G H

If you started or acquired this business during 2019, check here .

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If “Yes,” did you or will you file required Forms 1099?

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x x

Yes

No

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J

Part I 1 2 3 4 5 6 7

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Returns and allowances .

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Subtract line 2 from line 1

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3

Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . .

4 5

Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) .

Gross income. Add lines 5 and 6 . Advertising .

Car and truck expenses (see instructions) . . . . .

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10

Commissions and fees

11 12 13

Contract labor (see instructions)

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No

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23,550

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Depletion . . . . . Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . . .

8

3,000

18

Office expense (see instructions) Pension and profit-sharing plans

986

19 20

9 10 11 12

14

Insurance (other than health)

15

Mortgage (paid to banks, etc.) Other . . . . . . Legal and professional services

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20a 20b

21

Repairs and maintenance .

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22 23

Supplies (not included in Part III) .

1,700 315

Other business property

Taxes a...