Question

ACCT 1125, Individual Federal Income Tax 2020 Sample Problem 4A Robert Oldeman, S.S# 347-64-5639, age 66, is a single taxpayer living at 568 Wild Rapid Run, Toccoa, GA 30577. During 2019, Robert had the following items of income: Interest: Bank of America City of Dacula Bonds $19,000 $ 2,500 Dividends (all ordinary dividends, but NOT qualified dividends) Mad River Canoe Co $ 4,950 Robert also received Social Security benefits during 2019 of $18,000. PLEASE COMPLETE FORM 1040, SCHEDULE B, AND THE SOCIAL SECURITY WORKSHEET FOR ROBERT OLDEMAN.

Answer 1

Form 1040:- Form 1040 is an IRS tax form used for personal federal income tax returns filed by United States residents. The form calculates the total taxable income of the taxpayer and determines how much is to be paid or refunded by the government

Interest income taxable 19000+2500 = 21500

Ordinary dividend = 4950

Social Security benefit = 18000

Total income =$44450

Shedule B to Form 1040:- Interest and ordinary Dividend

This shedule is the attachment to the Form 1040, containing details about interest earned from Bank of America ($19000) and City of Dacula Bonds($2500), and about the ordinary dividend reveived from mad river conoe co. of $4950.

Social Security Worksheet:- it is also a attachment to the form 1040, and relevent lines for this in this form are 5a and 5b, whereas the details of the social security benefit written and disclosed i.e. $18000.