Question

lease complete the 2019 Form 1040 (Stop after completing Line 12a, round up to the nearest dollar),

Schedule-1 and Schedule A for the taxpayer:

 

 Julie Anderson is a project manager and her wage is 74,200. Julie's father passed away on April 14. She inherited her father’s cottage (vacation home) in Montana and 80,000 cash. She used the 80,000 to invest in an annuity product that pays her $ 10,000 per year for the next 10 years. The first yearly payment ($10,000) was received on December 15th, 2019

 

Her 2019 filing status is Single. She also has the following items for 2019:

 

Interest income from:

Capital One                                             200

City of San Francisco municipal bond    600

US Treasury bond.                   800

 

Ordinary dividends from her investment in Wells Fargo… 500. All the dividends are qualified for the 15% tax rate.

 

She also bought 50 shares Apple Inc. stock (AAPL) when the price was $100 per share. AAPL's market closing price for December 2019 is $250 per share. No shares were sold during the year.

 

During the year she went to Wynn Las Vegas and won $ 1,300 in a poker game. However, she lost $2,000 at another casino.

 

She received $4,000 insurance payout from AFLAC. The insurance policy was bought by herself.

 

She has the following refunds and withholdings in 2019, and took the standard deduction on her 2018 federal tax return.

 

California state income tax refund……… 250

State income tax withheld from her paycheck…………………. .4200

Federal income tax withheld from her paycheck……………….  9000

Social security tax paid as an employee............. 5340

 

She owns and lives in her house in Fresno, CA and has the following expenses:

 

Home mortgage loan interest…………………     8700

Home mortgage loan points (not reported on Form 1098)….. 200

Real estate tax on her house…………………     4000

Personal-use car loan interest………………..     2000

 

She also paid 2000 of qualified student loan interest.

 

Ms. Anderson had a medical procedure and incurred qualified medical costs of $30,000. Her health insurance policy pays 80% of the medical cost and Julie paid the remaining 20% out of her own pocket.

Qutstion below

 

Question 1

0 / 2 points

Form 1040 Line 1 _____ (Wages, enter without comma or $)

Answer:	75200
Question 2				0 / 1 point

Form 1040 Line 2a (Tax-exempt interest)

Answer:
Question 3				0 / 2 points

Taxable interest on 1040 Line 2b _______

Answer:	2000
Question 6				0 / 2 points

Form 1040 Line 4d (Taxable amount)

Answer:
Question 7				0 / 2 points

Form 1040 Line 6 (capital gains or loss, enter zero if none)

Answer:
Question 9				0 / 2 points

The applicable student loan interest phase-out percentage is 

Question options:

	20%
	40%
	60%
	80%
Question 12		0 / 1 point

Schedule 1, Line 20 (Deductible student loan interest) ______

Answer:	0
Question 13				0 / 1 point

Form 1040, Line 8b (Adjusted Gross Income) ______

Answer:	79000
Question 15				0 / 1 point

Schedule-A Line 4 (Deductible Medical Expense)

Answer:	75
Question 16				0 / 1 point

Schedule A Line 5a ______

Answer:	3200
Question 20				0 / 3 points

Schedule A Line 8a (Deductible interest) _____

Answer:	5500
Question 24				0 / 1 point

Schedule-A Total Itemized Deductions ______

Answer:	18275
Question 25				0 / 1 point

Form 1040 Line 9 (Standard or Itemized Deduction) ______

Answer:	18350
Question 27				0 / 1 point

Taxable income _______

Answer:	60650
Question 28				0 / 3 points

Total Tax (Round up to the nearest dollar) _______

Answer:	6286
Question 29				0 / 2 points

Where could Julie deduct the utilities and insurance on the cottage in Montana? She does not live there and plans to rent it out for income next year.

Question options:

	On Schedule-A as Itemized Deduction next year
	On Schedule-C as Deduction For AGI next year
	On Schedule-E as Deduction For AGI next year
	None of the above
Question 30		0 / 2 points