Comprehensive Problem 2-2BCarl Conch and Mary Duval are married and file a joint return. Carl works...

Question

Comprehensive Problem 2-2BCarl Conch and Mary Duval are married and file a joint return. Carl works for the Key Lime Pie Company and Mary is a unemployed after losing her job in 2019. Carl's birthdate is June 14, 1975 and Mary's is October 2, 1975. Carl received a W-2 from his employer (see separate tab).Carl and Mary received Form 1099-INT from the Coral Reef Bank and Form 1099-DIV from Southwest Corporation (see separate tab).Mary is divorced and she pays her ex-husband (Tom Tortuga) child support. Pursuant to their January 12, 2017 divorce decree, Mary pays Tom $500 per month in child support. All payments were made on time in 2020.In June of 2020, Mary's father gave her a cash gift of $75,000. Mary also received unemployment compensation as shown on the Form 1099-G (see separate tab).Mary won a $800 prize in a women's club raffle in 2020. No income tax was withheld from the prize.The Key Lime Pie Company provides Carl with a company car to drive while he is working. The Company spent $6,475 to maintain this vehicle during 2020. Carl never uses the car for personal purposes. The Key Lime Pie Company also provides a cafeteria for all employees on the factory premises. Other restaurants exist in the area and so Carl is not required to eat in the cafeteria, but he typically does. The value of Carl's meals is $650 in 2020.Carl and Mary received a $2,400 EIP in 2020.Required:Complete Carl and Mary's Form 1040 and Schedule 1 for 2020. The taxpayers had health care coverage the entire year. Only Carl wants to make a 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 the amount is zero, enter "0". Enter all amounts as positive numbers. If required, round amounts to the nearest dollar.

Rinki · Accepted Answer

2020 Form 1040
Fo
rm1040 2020U.S. Individual Income Tax Return Department of the Treasury—Internal Revenue Service (99) OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. 
Filing Status  
Check only 
one box.
Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW)
If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child’s name if the qualifying 
person is a child but not your dependent  ▶
Your first name and middle initial Last name Your social security number 
If joint return, spouse’s first name and middle initial Last name Spouse’s social security number
Home address (number and street). If you have a P.O. box, see instructions. Apt. no. 
City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code
Foreign country name                                        Foreign province/state/county                        Foreign postal code  
Presidential Election Campaign
Check here if you, or your 
spouse if filing jointly, want $3 
to go to this fund. Checking a 
box below will not change 
your tax or refund. 
You Spouse 
At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No
Standard 
Deduction
Someone can claim: You as a dependent Your spouse as a dependent
Spouse itemizes on a separate return or you were a dual-status alien
Age/Blindness You: Were born before January 2, 1956 Are blind Spouse: Was born before January 2, 1956 Is blind
Dependents (see instructions):
If more         
than four 
dependents, 
see instructions 
and check 
here ▶
(2) Social security 
number
(3) Relationship 
to you
(4) ✔ if qualifies for (see instructions):
(1) First name   Last name Child tax credit Credit for other dependents
1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . 1
Attach 
Sch. B if 
required.
2a Tax-exempt interest . . . 2a b  Taxable interest  . . . . . 2b 
3a Qualified dividends . . . 3a b  Ordinary dividends . . . . . 3b 
4a IRA distributions . . . . 4a b  Taxable amount . . . . . . 4b 
5a Pensions and annuities . . 5a b  Taxable amount . . . . . . 5b
6a Social security benefits . . 6a b  Taxable amount . . . . . . 6b 
7 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . ▶ 7
8 Other income from Schedule 1, line 9 . . . . . . . . . . . . . . . . . . . 8
9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . . . . . . . ▶ 9
10 Adjustments to income:
a From Schedule 1, line 22 . . . . . . . . . . . . . . 10a
b Charitable contributions if you take the standard deduction. See instructions  10b
c Add lines 10a and 10b. These are your total adjustments to income . . . . . . . . ▶ 10c
11 Subtract line 10c from line 9. This is your adjusted gross income . . . . . . . . . ▶ 11
12 Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . .
Standard  
Deduction for—
• Single or 
Married filing 
separately,  
$12,400
• Married filing  
jointly or 
Qualifying 
widow(er), 
$24,800
• Head of 
household, 
$18,650
• If you checked 
any box under 
Standard 
Deduction, 
see instructions.
12
13 Qualified business income deduction. Attach Form 8995 or Form 8995-A . . . . . . . . 13
14 Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . . . . . . 14
15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- . . . . . . . . . 15
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2020)
Form 1040 (2020) Page 2
16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 . . 16
17 Amount from Schedule 2, line 3 . . . . . . . . . . . . . . . . . . . . 17
18 Add lines 16 and 17 . . . . . . . . . . . . . . . . . . . . . . . .  18
19 Child tax credit or credit for other dependents . . . . . . . . . . . . . . . . 19
20 Amount from Schedule 3, line 7 . . . . . . . . . . . . . . . . . . . . 20
21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . 21
22 Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . . . . . . . . . 22
23 Other taxes, including self-employment tax, from Schedule 2, line 10 . . . . . . . . . 23
24 Add lines 22 and 23. This is your total tax . . . . . . . . . . . . . . . . ▶ 24
25 Federal income tax withheld from:
a Form(s) W-2 . . . . . . . . . . . . . . . . . . 25a
b Form(s) 1099 . . . . . . . . . . . . . . . . . . 25b
c Other forms (see instructions) . . . . . . . . . . . . .

Comprehensive Problem 2-2B Carl Conch and Mary Duval are married and file a joint return. Carl works for the Key Lime Pie Company and Mary is a unemployed after losing her job in 2019. Carl's...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment