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, 1993 and Beverly’s birthdate is November 4, 1995. Bev and Ken’s earnings and income tax withholdings are reported on the following Form W-2s: 

The Hairs have interest income of $1,000 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 2019. She was paid $1,825 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 2014. During 2019, he paid his ex-wife $300 per month in child support. Robert is claimed as a dependent by Ken’s ex-wife. 

During 2019, 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. 

Required:

Complete the Hairs’ federal tax return for 2019 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 Visit the IRS website at Safe, accurate, FASTI Use e file OMB No. 1545-0008 www.irs.gov/efile b Employer identification number (EIN) 31-1238967 1 Wages, tips, other compensation 51,000.00 3 Social security wages 51,000.00 5 Medicare wages and tips 2 Federal income tax withheld 4,790.00 4 Social security tax withheld c Employer's name, address, and ZIP code 3,162.00 6 Medicare tax withheld Cypress Corp. 1234 E. Chestnut Parkway Springfield, MO 65802 739.50 51,000.00 7 Social security tips 8 Allocated tips d Control number 10 Dependent care benefits e Employee's first name and initial Last name Suft. 11 Nonqualified plans 12a See instructions for box 12 Beverly Hair 3567 River Street 13 Story employee Flutirement plan Trand-party sick pay 12b Springfield, MO 63126 14 Other 12c 12d f Employee's address and ZIP code Employer's state ID number 15 State 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name MO 51,000.00 680.00 2019 Department of the Treasury-Internal Revenue Service Form W-2 Wage and Tax Statement Copy B-To Be Filed With Employee's FEDERAL Tax Returm. This information is being furnished to the Internal Revenue Service.