Question

Beverly and Ken Hair have been married for 3 years. Beverly works as an accountant at Cypress Corporation. Ken is a full-time student at Southwest Missouri State University (SMSU) and also works part-time during the summer at Cypress Corp. Ken's birthdate is January 12, 1993 and Beverly's birthdate is November 4, 1995. Beverly and Ken each received a W-2 form from Cypress Corporation (see separate tab). The Hairs have interest income of $1,000 on City of St. Louis bonds. Beverly and Ken also received a Form 1099-INT from Boatman's Bank and a 1099-DIV form from green Corporation (see separate tab). Ken is an excellent student at SMSU. He was given a $1,750 scholarship by the university to help pay educational expenses. The scholarship funds were used by Ken for tuition and books. Last year, Beverly was laid off from her former job and was unemployed during January 2019. She was paid $1,825 of unemployment compensation until she started work with her current employer, Cypress Corporation. Ken has a 4-year-old son, Robert R. Hair, from a prior marriage that ended in divorce in 2014. During 2019, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken's ex-wife. During 2019, Ken's aunt died. The aunt, in her will, left Ken $15,000 in cash. Ken deposited this money in the Boatman's Bank savings account. Required: Complete the Hairs' Form 1040, Schedule 1, and the Qualified Dividends and Capital Gain Tax Worksheet. The Hair's had health cover for the entire year. They do not want to make any contribution to the presidential election campaign. Make any other realistic assumptions about any missing data. If an amount box does not require an entry or if an amount is zero, enter "0". Enter amounts as positive numbers. If required, round amounts to the nearest dollar.

Beverly and Ken's earnings and income tax withholdings are reported on the following W-2 forms from Cypress Corporation: a Employee's social security number 465-74-3321 OMB No. 1545-0008 Safe, accurate, FAST! Use IR en file Visit the IRS website at www.lrs.gov/elle b Employer identification number (EIN) 31-1238967 1 Wages, tips, other compensation 51,000.00 2 Federal income tax withheld 4,790.00 3 Social security wages 51,000.00 c Employer's name, address, and ZIP code Cypress Corp. 1234 E. Chestnut Parkway Springfield, MO 65802 4 Social Security tax withheld 3,162.00 6 Medicare tax withheld 739.50 5 Medicare wages and tips 51,000.00 7 Social security tips 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Sufr. 11 Nonqualified plans 1 2a See instructions for box 12 C e Employee's first name and initial Beverly Hair 3567 River Street Springfield, MO 63126 O d 13 Statutory employee Retirement Third-party 125 plan sick pay 다. d 14 Other 12c D d

Link for 2019 tax table: https://www.irs.gov/pub/irs-pdf/i1040tt.pdf

Answer 1

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