prepare a tax return
Problems: Chapter 6-57 (Roberta Santos) South-Western’s Federal Taxation, Comprehensive Volume (2021). Prepare the Tax Return for 2019.
Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason’s Social Security number is 111-11-1112, and June’s is 123-45-6788. Roberta has never owned or used any virtual currency. She does not want to contribute $3 to the Presidential Election Campaign Fund.
Roberta, an advertising executive, earned a salary from ABC Advertising of $80,000 in 2019. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax.
Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jason’s support during 2019. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2019, she has decided not to do so. Roberta provides all of June’s support.
Roberta’s mother died on January 7, 2019. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother’s life insurance policy, Roberta received insurance proceeds of $300,000. Her mother’s cost basis for the life insurance policy was $120,000. Roberta’s favorite aunt gave her $13,000 for her birthday in October.
On November 8, 2019, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2013. Walt’s cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2015. On December 1, 2019, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2015, for $8,000.
An examination of Roberta’s records reveals that she received the following:
Interest income of $2,500 from First Savings Bank.
Groceries valued at $750 from Kroger Groceries for being the 100,000th customer.
Qualified dividend income of $1,800 from Amber.
Interest income of $3,750 on City of Springfield school bonds.
Alimony of $16,000 from Wayne; divorce finalized in May 2015.
Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W-2 wage limitation does not.
From her checkbook records, she determines that she made the following payments during 2019:
Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained).
Paid $5,000 to ECM Hospital for the medical expenses of a friend from work.
Mortgage interest on her residence of $7,800 to Peoples Bank.
Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence.
Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000.
Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses.
A $1,000 ticket for parking in a handicapped space.
Attorney’s fees of $500 associated with unsuccessfully contesting the parking ticket.
Contribution of $250 to the campaign of a candidate for governor.
Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994.
Calculate Roberta’s net tax payable or refund due for 2019. Use the appropriate forms and schedules. Suggested software: ProConnect Tax Online.
Due: See Syllabus
Changes to Problem: None. The textbook has 2019 tax year information.
The following information should be helpful in your preparation of the tax return.
(1) (a) Requirement: Prepare the federal income tax return on the appropriate IRS forms. (Even if you use a software program, you must turn in manual entries on IRS forms.) Copies of those forms and instructions are available at www.irs.gov FOR ELECTRONIC SUBMISSIONS IN ONLINE CLASSES, PLEASE MAKE EVERY EFFORT TO SUBMIT, IF POSSIBLE, EITHER A SINGLE PDF OR A SINGLE WORD DOCUMENT OF THE ENTIRE TAX RETURN. THANK YOU.
(b) Additional Requirements: Prepare a brief top sheet summarizing the factual information in the format of the tax formula.
(2) Strategy: You might want to start with page 1 of the 1040 and manually make entries (pencil recommended). You may then need to do subsidiary forms (e.g., Schedules C). You might also want to work out the figures for the tax formula roughly first before beginning the return.
(3) Check figures:
Adjusted gross income $109,850 Itemized deductions $22,200
Taxable income $86,590
(4) Check forms: (please include in your return):
a. Per the syllabus, this manual return is 10% of the grade; i.e., 40 points, since the four exams are worth 75 points each of the 400 possible points.
b. Actual maximum, manual return, 43 points (3 points extra credit)
c. Forms: 1040 pages 1 & 2; Schedules 1, 3, A, B, D; E p.2; Form 8949 pt.2; Form 8995; Form 8582 (not required as part of assignment); Qualified Dividends and Capital Gain Tax WorksheetLine 12a in 1040 Instructions
(6) Additional helpful information:
a. Please use the sequence numbers in the upper right-hand corner of the official IRS forms for the proper order
b. Do not calculate next year’s estimates or any late filing penalty or interest.
c. There is a QBI deduction because there is QBI on the Schedule E page 2.
d. Dividends are ordinary and qualified. Long-term capital gains are subject to special tax rates.
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.