Basic information about the taxpayer 1. Name: Herbert Kahn 2. Age: 45 3. Blind: No. 4....

 

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Basic information about the taxpayer 1. Name: Herbert Kahn 2. Age: 45 3. Blind: No. 4. Filing status: Head of Household 5. SSN: 776-30-0125 6. Dependents: 1) Nick Kahn: age 5, relationship: son SSN: 776-31-0225 Income information 1. Salary: $170,000 2. Interest income: $1,500 from municipal bonds and $3,500 from Microsoft stocks 3. Dividends: $1,000 of qualified dividends and $5,000 in ordinary dividends 4. Purchase 500 shares of Dell stocks on Jan. 10, 2021, at the price of $200/share, and sell 200 shares of Dell stocks on Dec.10., 2022, at the price of $150/share. 5. Purchase 350 shares of Apple stocks on Oct. 10, 2021, at the price of $250/share, and sell 300 shares of Apple stocks on Sept. 15, 2022, at the price of $500/share. 6. Tax refund from GA: $500 7. Income from consulting service, in which Herbert is the sole proprietor: a) Accounting method: cash b) Business start date: Jan. 1, 2020 c) Form 1099: No. d) Income: $5,800 Expense and state tax information 1. Expenses related to the consulting service: a) Advertising: $200 b) Meals provided by restaurants: $270 2. Donation: a) $9,000 to a local church, paid in cash; b) One hundred shares of bonds in JBD., Inc. to a qualified business organization, a children's support organization. The bond's market price is $180/share at the donation date. The purchase price of the stock is $150/share. c) $5000 to his niece, Amy, to support Amy's education 3. Income tax paid to GA: $3,800 4. Real estate tax paid to GA: $5,000 5. Investment expenses: a) $150 interest expenses related to the municipal bonds; b) $500 interest expenses related to the Microsoft stocks purchase Other information 1. Federal income tax withheld on Form W-2: $21,000 2. Tax overpayments carried from 2022: $2,000 Requirements 1. Prepare Form 1040 (2022 edition) for the taxpayer and attach the required forms or schedules 2. Use Form 6251 to check whether the taxpayer is subject to the Alternative Minimum Tax (Please attach the form even if the taxpayer does not subject to AMT.) 3. If the taxpayer is subject to any tax credits (child tax, earned income tax, etc.), please add the credits in Form 1040. 4. If the final result is an overpayment, please 5. apply that amount to the 2023 estimated tax. Basic information about the taxpayer 1. Name: Herbert Kahn 2. Age: 45 3. Blind: No. 4. Filing status: Head of Household 5. SSN: 776-30-0125 6. Dependents: 1) Nick Kahn: age 5, relationship: son SSN: 776-31-0225 Income information 1. Salary: $170,000 2. Interest income: $1,500 from municipal bonds and $3,500 from Microsoft stocks 3. Dividends: $1,000 of qualified dividends and $5,000 in ordinary dividends 4. Purchase 500 shares of Dell stocks on Jan. 10, 2021, at the price of $200/share, and sell 200 shares of Dell stocks on Dec.10., 2022, at the price of $150/share. 5. Purchase 350 shares of Apple stocks on Oct. 10, 2021, at the price of $250/share, and sell 300 shares of Apple stocks on Sept. 15, 2022, at the price of $500/share. 6. Tax refund from GA: $500 7. Income from consulting service, in which Herbert is the sole proprietor: a) Accounting method: cash b) Business start date: Jan. 1, 2020 c) Form 1099: No. d) Income: $5,800 Expense and state tax information 1. Expenses related to the consulting service: a) Advertising: $200 b) Meals provided by restaurants: $270 2. Donation: a) $9,000 to a local church, paid in cash; b) One hundred shares of bonds in JBD., Inc. to a qualified business organization, a children's support organization. The bond's market price is $180/share at the donation date. The purchase price of the stock is $150/share. Basic information about the taxpayer 1. Name: Herbert Kahn 2. Age: 45 3. Blind: No. 4. Filing status: Head of Household 5. SSN: 776-30-0125 6. Dependents: 1) Nick Kahn: age 5, relationship: son SSN: 776-31-0225 Income information 1. Salary: $170,000 2. Interest income: $1,500 from municipal bonds and $3,500 from Microsoft stocks 3. Dividends: $1,000 of qualified dividends and $5,000 in ordinary dividends 4. Purchase 500 shares of Dell stocks on Jan. 10, 2021, at the price of $200/share, and sell 200 shares of Dell stocks on Dec.10., 2022, at the price of $150/share. 5. Purchase 350 shares of Apple stocks on Oct. 10, 2021, at the price of $250/share, and sell 300 shares of Apple stocks on Sept. 15, 2022, at the price of $500/share. 6. Tax refund from GA: $500 7. Income from consulting service, in which Herbert is the sole proprietor: a) Accounting method: cash b) Business start date: Jan. 1, 2020 c) Form 1099: No. d) Income: $5,800 Expense and state tax information 1. Expenses related to the consulting service: a) Advertising: $200 b) Meals provided by restaurants: $270 2. Donation: a) $9,000 to a local church, paid in cash; b) One hundred shares of bonds in JBD., Inc. to a qualified business organization, a children's support organization. The bond's market price is $180/share at the donation date. The purchase price of the stock is $150/share. c) $5000 to his niece, Amy, to support Amy's education 3. Income tax paid to GA: $3,800 4. Real estate tax paid to GA: $5,000 5. Investment expenses: a) $150 interest expenses related to the municipal bonds; b) $500 interest expenses related to the Microsoft stocks purchase Other information 1. Federal income tax withheld on Form W-2: $21,000 2. Tax overpayments carried from 2022: $2,000 Requirements 1. Prepare Form 1040 (2022 edition) for the taxpayer and attach the required forms or schedules 2. Use Form 6251 to check whether the taxpayer is subject to the Alternative Minimum Tax (Please attach the form even if the taxpayer does not subject to AMT.) 3. If the taxpayer is subject to any tax credits (child tax, earned income tax, etc.), please add the credits in Form 1040. 4. If the final result is an overpayment, please 5. apply that amount to the 2023 estimated tax. c) $5000 to his niece, Amy, to support Amy's education 3. Income tax paid to GA: $3,800 4. Real estate tax paid to GA: $5,000 5. Investment expenses: a) $150 interest expenses related to the municipal bonds; b) $500 interest expenses related to the Microsoft stocks purchase Other information 1. Federal income tax withheld on Form W-2: $21,000 2. Tax overpayments carried from 2022: $2,000 Requirements 1. Prepare Form 1040 (2022 edition) for the taxpayer and attach the required forms or schedules 2. Use Form 6251 to check whether the taxpayer is subject to the Alternative Minimum Tax (Please attach the form even if the taxpayer does not subject to AMT.) 3. If the taxpayer is subject to any tax credits (child tax, earned income tax, etc.), please add the credits in Form 1040. 4. If the final result is an overpayment, please 5. apply that amount to the 2023 estimated tax.

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Steps Step 1 of 4 Form 1040 1 Income a Wages salaries tips etc 170000 b Taxable interest 1500 c Ordinary dividends 5000 d Qualified dividends 1000 e Capital gain loss Sales price of Dell stocks 200 sh... View the full answer