a. b. Note: This problem is for the 2020 tax year. Denise Lopez, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Flonda Atlantic University at 1986 Campus Drive, Boca Raton, FL 33434. Denise is a material participant in the business, she is a cash basis taxpayer, and her Social Security number is 123-45-6781, Denise lives at 2020 Oakcrest Road, Boca Raton, FL, 33431. Jane's Social Security number is 12345-6781. Denise wants to designate $3 to the Presidential Election Campaign Fund. She has never owned or used any virtual currency, Denise received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. During 2020, Denise had the following income and expense items: $100,000 salary from Legal Services, Inc. $20,000 gross receipts from her typing services business $700 interest income from Third National Bank d. $1,000 Christmas bonus from Legal Services, Inc $60,000 life insurance proceeds on the death of her sister. $5,000 check given to her by her wealthy aunt. $100 won in a bingo game Expenses connected with the Typing Services Office rent $7,000 Supplies 4,400 Utilities and telephone 4,680 C 0 9 1. $5,000 check given to her by her wealthy aunt. $100 won in a bingo game. h. Expenses connected with the Typing Services: Office rent $7,000 Supplies 4,400 Utilities and telephone 4,680 Wages to part-time typists 5,000 Payroll taxes 500 Equipment rentals 3,000 $9,500 interest expense on a home mortgage (paid to Boca Raton Savings and Loan). $15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2020. Denise had paid $14,000 for the silverware on July 1, 2010. She was reimbursed $10,000 by her insurance company. Denise had loaned $2,100 to a friend, Joan Jensen, on June 3, 2016. Joan declared bankruptcy on August 14, 2020, and was unable to repay the loan. Assume that the loan is a bona fide debt. 1. Legal Services, Inc., withheld Federal income tax of $15,000 and the appropriate amount of FICA tax from her wages. m. Alimony of $10,000 received from her former husband, Omar Guzman; divorce was finalized on December 2, 2014, and no changes have been made to the divorce decree since that time. Interest income of $800 on City of Boca Raton bonds Denise made estimated Federal tax payments of $2,000 Sales taxes from the sales tax table of $953. Property taxes on her residence of $3,200 k a . o P. a n. 0. p. 9 5 I. Legal Services, Inc., withheld Federal income tax of $15,000 and the appropriate amount of FICA tax from her wages. m. Alimony of $10,000 received from her former husband, Omar Guzman, divorce was finalized on December 2, 2014, and no changes have been made to the divorce decree since that time. Interest income of $800 on City of Boca Raton bonds Denise made estimated Federal tax payments of $2,000. Sales taxes from the sales tax table of $953. Property taxes on her residence of $3,200. Charitable contribution of $2,500 to her alma mater, Citrus State College. On November 1, 2020, Denise was involved in an automobile accident. At the time of the accident, her automobile's FMV was $45,000. After the accident, the automobiles FMV was $38,000. Denise acquired the car on May 2, 2019, at a cost of $52,000 Denise's car was covered by insurance, but because the policy had a $5,000 deduction clause, Denise decided not to file a claim for the damage Required: Compute Denise Lopez's 2020 Federal income tax payable (or refund due). Use Form 1040, Schedule 1, Schedule 5, Schedule A, Schedule C, Schedule D and Form 8949. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "o". Enter all amounts as positive numbers. However, unless instructed otherwise, use the minus sign to indicate a loss. It may be necessary to complete the tax schedules before completing Form 1040. Use the tax rate schedules provided (do not use the tax tables). When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Complete Denise Lopez's Form 1040 for 2020. Use the provided tax rate schedules. Use the minus sign to indicate a loss. This books You can ea Form Department of the Treasury Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2020 OMB No 1545-0074 IRS Use Only Filing Status Your first name and middle initial Last name Your social security number Denise Lopez 123-45-6781 If joint return, spouse's first name and Last name Spouse's social security number middle initial Home address (number and street). If you have a PO box, see Apt no. Presidential Election Campaign instructions Check here if you, or your spouse if hling Jointly, want $3 2020 Oakcrest Road to go to this fund. Checking a box below will not change City, town, or post office. If you have a foreign State ZIP your tax or refund address, also complete spaces below code Boca Raton, FL 33431 Foreign country name Foreion province/state/county Foreign postal code At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Standard Deduction Someone can claims You: Age/Blindness Spouse: Dependents (2) Social (3) (4) Vit qualifies for (see (see instructions) If more than four dependents, see instructions and security Relationship Instructions) check here number Credit for (1) First name Last name Child tax credit other to you D 1 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest 2b Attach Sch. Bir required. 3a Qualified dividends 3a b Ordinary dividends 3b 4a 1a IRA distributions b 4b Taxable amount 5b 5a Pensions and annuities b Taxable amount 33 6b 6a Social security benefits b Taxable amount 7 Capital gain or loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 9 7 8 9 9 9 Add lines 1, 2, 3, 4, 5, 6, 7 and 8. This is your total income Standard Deduction for Single or Married filing separately $12,400 Marned filing jointly or Qualifying widow(er), $24,800 Head of household, $18,650 If you checked any box under Standard Deduction, see instructions 10 Adjustments to income a From Schedule 1, line 22 10a b Charitable contributions if you take the standard deduction See instructions 10b Add lines 10 and 106. These are your total adjustments to income 11 Subtract line 10c from line 9. This is your adjusted gross income 100 11 12 12 Standard deduction or itemired deductions (from Schedule A) 13 13 Qualified business income deduction. Attach Form 8995 or Form 8995 A Adelina instructions 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. BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 15 Form 1040 (2020) Form 1040 (2020) Denise Lopez 123-45-6781 Page 2 16 Tax (see instructions). Check if any from Form(s): 108814 2 4972 30 16 17 Amount from Schedule 2, line 3 17 18 Add lines 16 and 17 18 19 19 20 Child tax credit or credit for other dependents Amount from Schedule 5, line 7..... Add lines 19 and 20.. 20 21 21 22 22 Subtract line 21 from line 18. If zero or less, entero- Other taxes, including self employment tax, from Schedule 2, line 10 23 23 24 24 Add lines 22 and 23. This is your total tax 25 Federal income tax withheld from: Form(s) W-2 25a h Formaling 25 Form(s) W-2 - 25a 250 26 b Form() 1099 25b Other forms (see instructions) 250 d Add lines 25a through 25 If you have a 26 2020 estimated tax payments and amount applied from 2019 return qualifying child, attach Sch. EIC Earned Income credit (EIC) 27 . If you have 27 nontaxable combat pay, see 2 Additional child tax credit. Attach Schedule 1812 instructions American opportunity credit from form 8863. Iine 29 29 28 Recovery rebate credit Ser instructions 30 30 Amount from Schedule 3, Ine 1) 31 31 32 Add lines 27 through 31. These are your total other payments and refundable credits 32 33 Add lines 250, 26, and 32. These are your total payments 33 34 Refund I line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 34 30 Amount from schedule 3, line 13 31 31 32 Add lines 27 through 31. These are your total other payments and refundable credits 32 33 Refund 33 Add lines 25d, 26, and 32. These are your total payments If line 13 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here b Routing number c Type: Checking Savings 34 35a Direct deposit? See instructions Account number 36 Amount of line 34 you want applied to your 2021 estimated Tax 36 37 Subtract line 33 from line 24. This is the amount you owe now 37 Amount You Owe For details on how to pay, see instructions Note: Schedule Hand Schedule SE ilers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12e, and its instructions for details 38 Estimated tax penalty (see instructions) 38 Third Party Designee Do you want to allow another person to discuss this return with the IRS? See instructions No Yes. Complete below a. b. Note: This problem is for the 2020 tax year. Denise Lopez, age 40, is single and has no dependents. She is employed as a legal secretary by Legal Services, Inc. She owns and operates Typing Services located near the campus of Flonda Atlantic University at 1986 Campus Drive, Boca Raton, FL 33434. Denise is a material participant in the business, she is a cash basis taxpayer, and her Social Security number is 123-45-6781, Denise lives at 2020 Oakcrest Road, Boca Raton, FL, 33431. Jane's Social Security number is 12345-6781. Denise wants to designate $3 to the Presidential Election Campaign Fund. She has never owned or used any virtual currency, Denise received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. During 2020, Denise had the following income and expense items: $100,000 salary from Legal Services, Inc. $20,000 gross receipts from her typing services business $700 interest income from Third National Bank d. $1,000 Christmas bonus from Legal Services, Inc $60,000 life insurance proceeds on the death of her sister. $5,000 check given to her by her wealthy aunt. $100 won in a bingo game Expenses connected with the Typing Services Office rent $7,000 Supplies 4,400 Utilities and telephone 4,680 C 0 9 1. $5,000 check given to her by her wealthy aunt. $100 won in a bingo game. h. Expenses connected with the Typing Services: Office rent $7,000 Supplies 4,400 Utilities and telephone 4,680 Wages to part-time typists 5,000 Payroll taxes 500 Equipment rentals 3,000 $9,500 interest expense on a home mortgage (paid to Boca Raton Savings and Loan). $15,000 fair market value of silverware stolen from her home by a burglar on October 12, 2020. Denise had paid $14,000 for the silverware on July 1, 2010. She was reimbursed $10,000 by her insurance company. Denise had loaned $2,100 to a friend, Joan Jensen, on June 3, 2016. Joan declared bankruptcy on August 14, 2020, and was unable to repay the loan. Assume that the loan is a bona fide debt. 1. Legal Services, Inc., withheld Federal income tax of $15,000 and the appropriate amount of FICA tax from her wages. m. Alimony of $10,000 received from her former husband, Omar Guzman; divorce was finalized on December 2, 2014, and no changes have been made to the divorce decree since that time. Interest income of $800 on City of Boca Raton bonds Denise made estimated Federal tax payments of $2,000 Sales taxes from the sales tax table of $953. Property taxes on her residence of $3,200 k a . o P. a n. 0. p. 9 5 I. Legal Services, Inc., withheld Federal income tax of $15,000 and the appropriate amount of FICA tax from her wages. m. Alimony of $10,000 received from her former husband, Omar Guzman, divorce was finalized on December 2, 2014, and no changes have been made to the divorce decree since that time. Interest income of $800 on City of Boca Raton bonds Denise made estimated Federal tax payments of $2,000. Sales taxes from the sales tax table of $953. Property taxes on her residence of $3,200. Charitable contribution of $2,500 to her alma mater, Citrus State College. On November 1, 2020, Denise was involved in an automobile accident. At the time of the accident, her automobile's FMV was $45,000. After the accident, the automobiles FMV was $38,000. Denise acquired the car on May 2, 2019, at a cost of $52,000 Denise's car was covered by insurance, but because the policy had a $5,000 deduction clause, Denise decided not to file a claim for the damage Required: Compute Denise Lopez's 2020 Federal income tax payable (or refund due). Use Form 1040, Schedule 1, Schedule 5, Schedule A, Schedule C, Schedule D and Form 8949. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "o". Enter all amounts as positive numbers. However, unless instructed otherwise, use the minus sign to indicate a loss. It may be necessary to complete the tax schedules before completing Form 1040. Use the tax rate schedules provided (do not use the tax tables). When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Complete Denise Lopez's Form 1040 for 2020. Use the provided tax rate schedules. Use the minus sign to indicate a loss. This books You can ea Form Department of the Treasury Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2020 OMB No 1545-0074 IRS Use Only Filing Status Your first name and middle initial Last name Your social security number Denise Lopez 123-45-6781 If joint return, spouse's first name and Last name Spouse's social security number middle initial Home address (number and street). If you have a PO box, see Apt no. Presidential Election Campaign instructions Check here if you, or your spouse if hling Jointly, want $3 2020 Oakcrest Road to go to this fund. Checking a box below will not change City, town, or post office. If you have a foreign State ZIP your tax or refund address, also complete spaces below code Boca Raton, FL 33431 Foreign country name Foreion province/state/county Foreign postal code At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Standard Deduction Someone can claims You: Age/Blindness Spouse: Dependents (2) Social (3) (4) Vit qualifies for (see (see instructions) If more than four dependents, see instructions and security Relationship Instructions) check here number Credit for (1) First name Last name Child tax credit other to you D 1 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest 2b Attach Sch. Bir required. 3a Qualified dividends 3a b Ordinary dividends 3b 4a 1a IRA distributions b 4b Taxable amount 5b 5a Pensions and annuities b Taxable amount 33 6b 6a Social security benefits b Taxable amount 7 Capital gain or loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 9 7 8 9 9 9 Add lines 1, 2, 3, 4, 5, 6, 7 and 8. This is your total income Standard Deduction for Single or Married filing separately $12,400 Marned filing jointly or Qualifying widow(er), $24,800 Head of household, $18,650 If you checked any box under Standard Deduction, see instructions 10 Adjustments to income a From Schedule 1, line 22 10a b Charitable contributions if you take the standard deduction See instructions 10b Add lines 10 and 106. These are your total adjustments to income 11 Subtract line 10c from line 9. This is your adjusted gross income 100 11 12 12 Standard deduction or itemired deductions (from Schedule A) 13 13 Qualified business income deduction. Attach Form 8995 or Form 8995 A Adelina instructions 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. BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 15 Form 1040 (2020) Form 1040 (2020) Denise Lopez 123-45-6781 Page 2 16 Tax (see instructions). Check if any from Form(s): 108814 2 4972 30 16 17 Amount from Schedule 2, line 3 17 18 Add lines 16 and 17 18 19 19 20 Child tax credit or credit for other dependents Amount from Schedule 5, line 7..... Add lines 19 and 20.. 20 21 21 22 22 Subtract line 21 from line 18. If zero or less, entero- Other taxes, including self employment tax, from Schedule 2, line 10 23 23 24 24 Add lines 22 and 23. This is your total tax 25 Federal income tax withheld from: Form(s) W-2 25a h Formaling 25 Form(s) W-2 - 25a 250 26 b Form() 1099 25b Other forms (see instructions) 250 d Add lines 25a through 25 If you have a 26 2020 estimated tax payments and amount applied from 2019 return qualifying child, attach Sch. EIC Earned Income credit (EIC) 27 . If you have 27 nontaxable combat pay, see 2 Additional child tax credit. Attach Schedule 1812 instructions American opportunity credit from form 8863. Iine 29 29 28 Recovery rebate credit Ser instructions 30 30 Amount from Schedule 3, Ine 1) 31 31 32 Add lines 27 through 31. These are your total other payments and refundable credits 32 33 Add lines 250, 26, and 32. These are your total payments 33 34 Refund I line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 34 30 Amount from schedule 3, line 13 31 31 32 Add lines 27 through 31. These are your total other payments and refundable credits 32 33 Refund 33 Add lines 25d, 26, and 32. These are your total payments If line 13 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here b Routing number c Type: Checking Savings 34 35a Direct deposit? See instructions Account number 36 Amount of line 34 you want applied to your 2021 estimated Tax 36 37 Subtract line 33 from line 24. This is the amount you owe now 37 Amount You Owe For details on how to pay, see instructions Note: Schedule Hand Schedule SE ilers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12e, and its instructions for details 38 Estimated tax penalty (see instructions) 38 Third Party Designee Do you want to allow another person to discuss this return with the IRS? See instructions No Yes. Complete below