Question

Please fill out Form 1040, Form 1040 schedule B, and form 1040 schedule D or as close to a 1040 form there is

Eric Amoth (Social Security Number 551-11-1111) is 50 years old and married to Mary Amoth, age 34, (Social Security Number 552-45-6789). Formerly, Mary was Eric’s secretary, but quit work to raise their children. They live at 1313 Mockingbird Lane, Mockingbird Heights, CA 92506. They file a joint return and have two dependent children, Anakin, age 13 and Rey, age 14. Anakin’s social security number is 551-45-6888 and Rey’s social security number is 552-45- 6777. Neither is interested in helping to fund the Presidential Election Campaign Fund. Eric and Mary come to you for help with the preparation of their 2019 tax return and have provided the details for the following transactions:

• Eric received $200,000 in salary from Red Steel Corporation, where he is a construction engineer. Federal withholding was $37,750 and the appropriate FICA and Medicare withholding was done. CA withholding was $15,100.
• Eric’s mother passed away 6/22/2019. He received a parcel of land worth $50,000 on 6/22/2019, no alternative valuation date was elected. He sold the land on 12/24/2019 for $50,600. He also received life insurance proceeds in the amount of $150,000. He invested a portion of the proceeds from the sale into Disney stock for his three children. The value of the Disney stock at the time of purchase was $10,000 per child.
• Eric and Mary received $10,400 from Los Angeles school district bonds.
• Eric received $5,300 interest from a Merrill Lynch money market account.
• The Amoth’s gave to the Goodwill items with a FMV of $650. They provided the receipt for the household goods donated on 7/15. The goodwill is the local one in Mockingbird Heights at 123 High Street.
• The Amoths own their home. They provided to you a Form 1098 with the mortgage interest paid by them to Rocket Mortgage. The total interest was $14,000. Additionally, the property taxes were impounded by Rocket Mortgagee and were $4,500 for the year.

Answer 1

Filing status & dependents: ? Filing status:* Married filingjoj Are you someone's No. dependent?:* Dependents qualifying for 2 child tax credit:* Income: $366,950 ? Wages, salaries, tips, $200,000 etc.:* ? Spouse wages, salaries, so tips, etc.:* ? Taxable interest:* $5,300 ? ? Tax-exempt interest:* $0 Ordinary dividends (this $0 includes any qualified dividends):* Qualified dividends $0 (included in ordinary dividends):* ? ? Taxable refunds of state ($o and local income taxes:* ? Alimony received:* $o ? Business income or loss ($o

? Business income or loss ($o (Schedule C & E subject to self-employment taxes):* ? Spouse's business $0 income or loss (Schedule C & E subject to self- employment taxes):* Short term capital gain or $600 loss:* Long term Capital gain or ($o loss:* ? Other gains or losses:* ($o Taxable IRA ($o distributions:* ? Taxable pensions and ($150,000 annuity distributions:* ? Intangible drilling costs $o (IDC) for investor general partne (this is an income reduction):* ? Income from rentals, $o royalties, S Corporations and Schedule E (not already included and subject to NIIT):* ? Income from rentals, ($o royalties, S Corporations and Schedule E (not already

? Farm income or loss ($0 (Schedule F):* ? Total unemployment $0 compensation:* ? Social Security benefits:* $0 ? Taxable income adjustments for Social Security, student loan interest & student tuition: ? Taxable Social Security benefits: $0 ? Other income:* $11,050 Total income: $366,950 $366,950 Adjusted gross income: ? Educator expenses:* $o ? ? Certain business ($o expenses (form 2106):* Health Savings Account ($o (HSA) deduction (form 8889):* One-half of self- $0 employment tax (Schedule SE) ?

$24,400 Standard or itemized deduction: Check if: You are 65 or older Check if: You are blind Check if: Spouse is 65 or older Check if: Spouse is blind ? Standard deduction: $24,400 ? Medical and dental ($o expenses:* ? Taxes paid (generally $4,500 state and local):* ? Interest paid:* $0 ? Gifts to charity:* $0 ? Itemized deduction: $4,500 $342,550 Taxable income: ? Adjusted gross $366,950 income: 2 Standard or itemized annenn

$342,550 Taxable income: ? Adjusted gross $366,950 income: ? Standard or itemized -$24,400 deduction: ? Qualified business so income deduction (Form 8995):* ? Taxable income: $342,550 $72,249 Total tax before credits: ? Income tax: $72,249 ? Excess advance premium ($o tax credit repayment (form 8962):* ? Alternative minimum tax ($o (AMT) income adjustments:* ? Alternative minimum $0 tax: Total tax before credits: $72,249 Total tax $4,000

Total tax $4,000 credits: ? Foreign tax credit (form $o 1116):* ? Credit for child and ($o dependent care expenses (form 2441):* ? Education credits (form ($o 8863, line 23):* Retirement savings ($o contributions credit (form 8880):* ? Child tax credit: $4,000 Residential energy credits ($o (Form 5695):* ? American opportunity ($0 credit (Form 8863, line 14):* ? American opportunity $o credit non-refundable: ? Other credits that are not so refundable:* $82,893 Total tax after credits: ? Self-employment tax: $0

Unreported Social $0 Security and Medicare tax (forms 4137 & 5329):* ? Additional tax on IRAS ($o and other retirement plans (Form 5329):* ? Household employment ($o taxes (Schedule H), Advanced EIC (W-2 box 9):* First time homebuyer ($14,000 credit repayment (Form 5405):* ? Medicare tax sur-tax $0 (0.9% X $0 on earned income ) (Form 8959): Net Investment Income $644 (3.8% X Tax (NIIT) (Form 8960): $16,950) Total payments $37,750 & refundable credits: ? Federal income tax ($37,750 withheld on Forms W-2 and 1099:* Estimated tax payments:* $o ? Additional child tax $0 credit (Form 8812):

таму час Рататі request for extension:* American opportunity $o credit refundable: Net premium credit (form $o 8962):* Other refundable credits:* $0 ? Earned income credit $0 (EIC): ? Qualifying children for ſo EIC:* ? Scholarships, penal ($o income and retirement income:* ? Non-taxable combat pay:* $20,000 Your age: ? Are you (or spouse) between the age of 25 and 65? ? Residency status: Have you (and spouse) lived in the U.S. for at least six months? ? Qualifying child status: Can you (or spouse) be claimed as a qualifying child of someone else? Your taxes are estimated at

Your taxes are estimated at $82,893. This is 22.59% of your total income of $366,950. Your total tax payments for the year were $37,750. Your outstanding tax bill is estimated at $45,143. This puts you in the 32% tax bracket. $366,950 $350 $342,550 $250 Thousands of Dollars $150 $50 $82,893 Total Income Total Taxable income Total Income Tax