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, 1994 and Beverly’s birthdate is November 4, 1996. Bev and Ken’s earnings and income tax withholdings are reported on the following Forms W-2:

The Hairs have interest income of $956 on City of St. Louis bonds. Beverly and Ken
also received the following Form 1099-INT and 1099-DIV:

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 2020. She was paid $1,847 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 2015. During 2020, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken’s ex-wife.

During 2020, 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.
Beverly and Ken received a $2,400 EIP in 2020.

Required: 

Complete the Hairs’ federal tax return for 2020 on Form 1040, Schedule 1, and the Qualified Dividends and Capital Gain Tax Worksheet.

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a Employee's social security number 465-74-3321 b Employer Identification number (EIN) 31-1238967 c Employer's name, address, and ZIP code Cypress Corp. 1234 E. Chestnut Pkwy. Springfield, MO 65802 d Control number e Employee's first name and initial Beverly Hair 3567 River Street Springfield, MO 63126 f Employee's address and ZIP code 15 State Employer's state ID number MOI Last name Form W-2 Wage and Tax Statement Copy B-To Be Filled With Employee's FEDERAL Tax Return. This Information is being furnished to the Internal Revenue Service. OMB No. 1545-0008 FAST! Use Safe, accurate, 1 Wagas, tips, other compensation 51,100.00 3 Social security wagas 51,100.00 5 Modicara wagos and tips 51,100.00 7 Social security tips Sutt 11 Nonqualified plans 13 y employee 16 State wages, tips, etc. 17 State Income tax 51,100.00 690.00 14 Other 2020 Petrument e file www.in.goviatio * 2 Federal Income tax withheld 4,610.00 Th k 4 Social security tax withhold 3,168.20 Visit the IRS website at 6 Medicare tax withhold 740.95 & Allocated tips 10 Dependent care benef 12a See Instructions for box 12 12b 9 120 12d 18 Local wages, tips, etc. 19 Local Income tax 20 Locality name Department of the Treasury-Internal Revenue Service