SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Additional Credits and Payments Attach...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Additional Credits and Payments Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040, 1040-SR, or 1040-NR Part I Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required 2 Credit for child and dependent care expenses. Attach Form 2441 Education credits from Form 8863, line 19. 3 4 Retirement savings contributions credit. Attach Form 8880 5 Residential energy credits. Attach Form 5695 6 Other credits from Form: a 3800 b 8801 C 7 Add lines 1 through 6. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 20 Part II Other Payments and Refundable Credits 8 Net premium tax credit. Attach Form 8962. 9 Amount paid with request for extension to file (see instructions) 10 Excess social security and tier 1 RRTA tax withheld 11 Credit for federal tax on fuels. Attach Form 4136 12 Other payments or refundable credits: a Form 2439 b Qualified sick and family leave credits from Schedule(s) H and Form(s) 7202 12a OMB No. 1545-0074 2020 Attachment Sequence No. 03 Your social security number 12b 12c 12d 12e c Health coverage tax credit from Form 8885 d Other: e Deferral for certain Schedule H or SE filers (see instructions) f Add lines 12a through 12e 13 Add lines 8 through 12f. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 31 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G 1 2 3 4 5 6 7 8 9 10 11 12f 13 Schedule 3 (Form 1040) 2020 Tax Return - John and Susan Smith John and Susan are married and file a joint return. John is 37 years of age and Susan is 42. John is a self-employed certified public accountant (CPA) and Susan is employed by HSBC Bank as a vice president for Home-Loans. They have 3 children: Mary, age 17, Maya, age 13, and Kara, age 10. The family lives at 6814 W. Harry, Dallas, Texas, 75225. They purchased their home on October 1, 2019. Until September 1, 2019, the family lived in New York City, NY, where John was employed by T-Mobil Company and Susan was a loan officer for Capital One Bank. They sold their home in New York and moved to Texas so that Susan could assume her new job as a vice-president for marketing at GM. John started his own business in Texas. Susan started her new job on January 1, 2020 and John started his own business on March 1, 2020. The family purchased their new home on December 1, 2019 for $435,000. It's a 30-year, 4% conventional mortgage loan from Bank of Texas. Susan received her W-2 (Note: This form was completed by the employer and sent a copy to Susan and another copy to the IRS. Hence, you do not need to complete W-2 form), reporting her salaries and withholds for 2020: Susan, Social Security No. 247-32-5629: Gross Salary.. Federal Income Taxes withheld................ F. I. C. A taxes withheld: Social Security...... Medicare....... $375,000 38,250 ??? ?? On January 1, 2020, John rented office space at 3995 W. Michigan Drive, Dallas, TX. The terms of the one-year lease agreement called for a monthly rent of $2,500. John decided to operate his business in the name of "Optimistic John, Certified Public Accountant," and he elected to use the cash method of accounting for his revenues and expenses. The following items relate to his business for 2020. Gross receipts.. Expenses: Advertising Bank Service Charges... Dues and publications... Insurance........... Interest....... Professional Services.. Office Rent....... Office Supplies..... John and Susan received the following dividends during 2020. Ford Motor Company... The family received interest income during 2020 from the following: US Treasury Bills........ First National Bank, New York.... Dallas County municipal bonds.. $465,000 $6,300 Boeing Corporation...... 4,500 Apple stock dividends (400 new shares of stock valued at $140 per share, received March 9, 2020) Prescription medicines and drugs..... Medical insurance premiums (paid by Susan).. Doctors and hospitals bills (net of reimbursements).. 5,350 200 2,350 2,500 275 725 Susan and John contributed $9,000 each to traditional IRA accounts. Real estate taxes paid on Mortgage Interest paid for Dallas House.... Credit card interest paid....... 30,000 3,700 The family reported the following stock transactions for 2020: 1. Sold 600 shares of Intel stock for $75 per share on December 28, 2020, and received the sales proceeds on that date. The family had paid $20 per share for the stock on May 21, 2015. 2. Sold 700 shares of Microsoft stock for $240 per share on July 31, 2020. The family purchased these shares on January 25, 2017 for $40 per share. Cash charitable contribution to First Baptist Church... Red Cross Susan has summarized the following cash expenditure for 2020 from cancelled checks, mortgage company statements, and other documents: $4,982 5,830 7,535 15,530 20,200 6,200 $5,750 3,850 3,600 8,200 5,500 John made estimated federal income tax payment of $7,750 each quarter (four payments made during 2020). Lastly, the family decided to adopt a child (his name is Sam) from a foreign country during 2020. They were able to adopt and bring the child to the USA to live with them on November 10, 2020. The child is 3 years old. The total cost of adoption paid during 2020 is $75,000. Specific Requirements: 1. Prepare the family's year 2020 individual income tax return (Form 1040). Include any required schedules (Schedule A, B, etc and Schedules 1, 2, 3.. etc). Even if itemized deductions are less than the standard deduction, attach a detailed Schedule A to show your work. 2. Group tax return - turn in one tax return per group. List names of group members as preparers. 4. 3. Use the "fill in" option for printed forms - no handwritten tax returns accepted. If you put more than one income or expense item on any given tax return line, attach a schedule showing the detail of amounts included. Reference the form number and line number. For example (how to reference) "Form 1040, line 1 - Wages, Salaries, tips, etc." Just one sheet for all of these. 5. If information is not specifically provided, assume the answer is NA. 6. You are not allowed to discuss tax return with anyone except your team member and me. 7. You are not allowed to use tax preparation software - not even as a reference. Instructions to download Form 1040: IRS Website: www.irs.gov Select: Forms and publications (left side of page) Select: Current Forms and Pubs HINT: Use the IRS website as your primary reference! You should download a copy of the instructions to Form 1040 that you will need to complete the individual income tax return. Warning: You may not want to print the Form 1040 instructions - - over 100 pages just for 1040 instructions. SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Additional Credits and Payments Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040, 1040-SR, or 1040-NR Part I Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required 2 Credit for child and dependent care expenses. Attach Form 2441 Education credits from Form 8863, line 19. 3 4 Retirement savings contributions credit. Attach Form 8880 5 Residential energy credits. Attach Form 5695 6 Other credits from Form: a 3800 b 8801 C 7 Add lines 1 through 6. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 20 Part II Other Payments and Refundable Credits 8 Net premium tax credit. Attach Form 8962. 9 Amount paid with request for extension to file (see instructions) 10 Excess social security and tier 1 RRTA tax withheld 11 Credit for federal tax on fuels. Attach Form 4136 12 Other payments or refundable credits: a Form 2439 b Qualified sick and family leave credits from Schedule(s) H and Form(s) 7202 12a OMB No. 1545-0074 2020 Attachment Sequence No. 03 Your social security number 12b 12c 12d 12e c Health coverage tax credit from Form 8885 d Other: e Deferral for certain Schedule H or SE filers (see instructions) f Add lines 12a through 12e 13 Add lines 8 through 12f. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 31 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G 1 2 3 4 5 6 7 8 9 10 11 12f 13 Schedule 3 (Form 1040) 2020 Tax Return - John and Susan Smith John and Susan are married and file a joint return. John is 37 years of age and Susan is 42. John is a self-employed certified public accountant (CPA) and Susan is employed by HSBC Bank as a vice president for Home-Loans. They have 3 children: Mary, age 17, Maya, age 13, and Kara, age 10. The family lives at 6814 W. Harry, Dallas, Texas, 75225. They purchased their home on October 1, 2019. Until September 1, 2019, the family lived in New York City, NY, where John was employed by T-Mobil Company and Susan was a loan officer for Capital One Bank. They sold their home in New York and moved to Texas so that Susan could assume her new job as a vice-president for marketing at GM. John started his own business in Texas. Susan started her new job on January 1, 2020 and John started his own business on March 1, 2020. The family purchased their new home on December 1, 2019 for $435,000. It's a 30-year, 4% conventional mortgage loan from Bank of Texas. Susan received her W-2 (Note: This form was completed by the employer and sent a copy to Susan and another copy to the IRS. Hence, you do not need to complete W-2 form), reporting her salaries and withholds for 2020: Susan, Social Security No. 247-32-5629: Gross Salary.. Federal Income Taxes withheld................ F. I. C. A taxes withheld: Social Security...... Medicare....... $375,000 38,250 ??? ?? On January 1, 2020, John rented office space at 3995 W. Michigan Drive, Dallas, TX. The terms of the one-year lease agreement called for a monthly rent of $2,500. John decided to operate his business in the name of "Optimistic John, Certified Public Accountant," and he elected to use the cash method of accounting for his revenues and expenses. The following items relate to his business for 2020. Gross receipts.. Expenses: Advertising Bank Service Charges... Dues and publications... Insurance........... Interest....... Professional Services.. Office Rent....... Office Supplies..... John and Susan received the following dividends during 2020. Ford Motor Company... The family received interest income during 2020 from the following: US Treasury Bills........ First National Bank, New York.... Dallas County municipal bonds.. $465,000 $6,300 Boeing Corporation...... 4,500 Apple stock dividends (400 new shares of stock valued at $140 per share, received March 9, 2020) Prescription medicines and drugs..... Medical insurance premiums (paid by Susan).. Doctors and hospitals bills (net of reimbursements).. 5,350 200 2,350 2,500 275 725 Susan and John contributed $9,000 each to traditional IRA accounts. Real estate taxes paid on Mortgage Interest paid for Dallas House.... Credit card interest paid....... 30,000 3,700 The family reported the following stock transactions for 2020: 1. Sold 600 shares of Intel stock for $75 per share on December 28, 2020, and received the sales proceeds on that date. The family had paid $20 per share for the stock on May 21, 2015. 2. Sold 700 shares of Microsoft stock for $240 per share on July 31, 2020. The family purchased these shares on January 25, 2017 for $40 per share. Cash charitable contribution to First Baptist Church... Red Cross Susan has summarized the following cash expenditure for 2020 from cancelled checks, mortgage company statements, and other documents: $4,982 5,830 7,535 15,530 20,200 6,200 $5,750 3,850 3,600 8,200 5,500 John made estimated federal income tax payment of $7,750 each quarter (four payments made during 2020). Lastly, the family decided to adopt a child (his name is Sam) from a foreign country during 2020. They were able to adopt and bring the child to the USA to live with them on November 10, 2020. The child is 3 years old. The total cost of adoption paid during 2020 is $75,000. Specific Requirements: 1. Prepare the family's year 2020 individual income tax return (Form 1040). Include any required schedules (Schedule A, B, etc and Schedules 1, 2, 3.. etc). Even if itemized deductions are less than the standard deduction, attach a detailed Schedule A to show your work. 2. Group tax return - turn in one tax return per group. List names of group members as preparers. 4. 3. Use the "fill in" option for printed forms - no handwritten tax returns accepted. If you put more than one income or expense item on any given tax return line, attach a schedule showing the detail of amounts included. Reference the form number and line number. For example (how to reference) "Form 1040, line 1 - Wages, Salaries, tips, etc." Just one sheet for all of these. 5. If information is not specifically provided, assume the answer is NA. 6. You are not allowed to discuss tax return with anyone except your team member and me. 7. You are not allowed to use tax preparation software - not even as a reference. Instructions to download Form 1040: IRS Website: www.irs.gov Select: Forms and publications (left side of page) Select: Current Forms and Pubs HINT: Use the IRS website as your primary reference! You should download a copy of the instructions to Form 1040 that you will need to complete the individual income tax return. Warning: You may not want to print the Form 1040 instructions - - over 100 pages just for 1040 instructions.
Expert Answer:
Answer rating: 100% (QA)
Here are the stepbystep calculations to complete Schedule 3 for John and Susan Smiths 2020 tax retur... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these law questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-4. Ivan and Irene paid the following in 2012 (all by check or can otherwise be...
-
Differentiate the function. f(x) = ln(x 2 + 10)
-
What strategy should be pursued for a "question mark" in the BCG Matrix, and why?
-
Specialists may be required to perform audit tasks that require knowledge or skills outside the auditor's abilities. Examples from the text include an engineer (to verify the stage of completion of...
-
For a chemically reacting system, the relation between Gibbs' free energy change and equilibrium constant is given by (a) \(K=e^{-\frac{R T}{\Delta \dot{G}}}\) (b) \(K=e^{-\frac{\Delta \dot{\circ}}{R...
-
The net income reported on the income statement for the current year was $92,000. Depreciation recorded on store equipment for the year amounted to $18,600. Balances of the current asset and current...
-
How is the rise of the gig economy reshaping traditional organizational structures, and what are the implications for workforce management and employee engagement ?
-
To generate needed foreign exchange, the Cuban government entered into a joint venture with Domingo Cigars of Spain. The joint venture manufactures Domingo Cigars in Cuba using Cuban tobacco and...
-
LTI System CU d) + 5y(t) = x() O. consider a alugma | x) Y6) = -2 & X(t) = 36 ) Find the natural response and response of the system. zero state
-
Point out the physical meaning of the boundary layer similarity hypothesis.
-
Please explain the main differences and pressure distribution of supersonic and subsonic flow around a plate?
-
What is an oblique shock wave? Please point out the difference between oblique shock and normal shock.
-
Why is the shock wave advancing speed less than the wave speed of the gas after the shock wave?
-
For small perturbation supersonic flow around a thin airfoil, write the linearized decomposition of the surface pressure coefficient?
-
School construction started in 1973 and was complete by 1978. We will assume, for simplicity, that the treated children are 2-6 years old in 1974 and control children are 12-16 years old in 1974. The...
-
Uniform electric field in Figure a uniform electric field is directed out of the page within a circular region of radius R = 3.00 cm. The magnitude of the electric field is given by E = (4.50 x 10-3...
-
While preparing Massie Miller's 2012 Schedule A, you review the following list of possible charitable deductions provided by Massie: Cash contribution to a family whose house burned...
-
Ulysses and Penelope are married and file separate returns for 2012. Penelope itemizes her deductions on her return. Ulysses' adjusted gross income was $17,400, his itemized deductions were $2,250,...
-
Brian and Kim have a 12-year-old child, Stan. For 2012, Brian and Kim have taxable income of $52,000, and Stan has nonqualifying dividend income of $4,500 and investment expenses of $250. No election...
-
A4-stroke, 4-cylinder, single acting spark ignition petrol engine develops \(20 \mathrm{~kW}\) brake power at \(3000 \mathrm{rpm}\). The following data are given : Bore \(=65 \mathrm{~mm}\), Stroke...
-
The following data is available for an engine working on ideal Otto cycle Temperature at the beginning of compression \(=50^{\circ} \mathrm{C}\). Temperature at the end of compressor \(=373^{\circ}...
-
A six cylinder four stroke I.C. Engine is to develop \(100 \mathrm{~kW}\) i.p. at 800 RPM. The stroke to bare ratio is 1.25. Assuming Mechanical efficiency of \(80 \%\) and break mean effective...
Study smarter with the SolutionInn App