Comprehensive Problem 8-84 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Static) [The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2020. She is 45 years old and has been divorced for four years. She receives $1,200 of allmony payments each month from her former husband (divorced In 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia. Reba rented a home In Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,000 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough Items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,800 In state income taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Insurance premiums Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for Heather $7,952 $1,100 $ 350 $ 100 $ 200 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $900 in damage to the car and gave her whiplash. Because the repairs were less than her Insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability Insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her Investments: $2,200 of Interest income from corporate bonds and $1,500 Interest Income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,000, but she did not sell any of her stocks. Heather reported $6,200 of Interest Income from corporate bonds she received as gifts from her father over the last several years. This was Heather's only source of income for the year. Reba had $10,000 of federal income taxes withheld by her employer. Heather made $1,000 of estimated tax payments during the year. Reba did not make any estimated payments. Reba had qualifying Insurance for purposes of the Affordable Care Act (ACA). $1040 Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return (99) 2019 Filing Status Single Married filing jointly Married filing separately (MFS) Check only one box. Your first name and middle initial Last name If joint return, spouse's first name and middle initial Last name OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Head of household (HOH) Qualifying widow(er) (QW) If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is a child but not your dependent. I Home address (number and street). If you have a P.O. box, see instructions. Apt. no. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Foreign country name Foreign province/state/county Foreign postal code Standard Deduction Someone can claim: You as a dependent Spouse itemizes on a separate return or you were a dual-status alien Your spouse as a dependent Age/Blindness You: Were born before January 2, 1955 Are blind Dependents (see instructions): (1) First name Spouse: (2) Social security number Was born before January 2, 1955 (3) Relationship to you Last name Your social security number Spouse's social security number Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse If more than four dependents, see instructions and here Is blind (4) if qualifies for (see instructions): Child tax credit Credit for other dependents 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest. 2a b Taxable interest. Attach Sch. B if required 2b Qualified dividends 3a b Ordinary dividends. Attach Sch. B if required 3b Standard Deduction for- 4a IRA distributions. 4a b Taxable amount 4b Single or Married C Pensions and annuities 4c d Taxable amount 4d filing separately. $12,200 5a Social security benefits 5a b Taxable amount 5b Married filing 6 jointly or Qualifying Capital gain or (loss). Attach Schedule D if required. If not required, check here 6 widow(er). 7a Other income from Schedule 1, line 9 7a $24,400 Head of b household, 8a Add lines 1,2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income Adjustments to income from Schedule 1, line 22 7b 8a $18,350 If you checked b Subtract line 8a from line 7b. This is your adjusted gross income 8b any box under 9 Standard Deduction, 10 Standard deduction or itemized deductions (from Schedule A) Qualified business income deduction. Attach Form 8995 or Form 8995-A 9 10 see instructions. 11a Add lines 9 and 10. b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -0- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. 11a 11b Cat. No. 113208 Form 1040 (2019) Form 1040 (2019) 12a Tax (see inst.) Check if any from Form(s): 1 b 8814 2 Add Schedule 2, line 3, and line 12a and enter the total 4972 3 12a A 12b Page 13a Child tax credit or credit for other dependents. 13a b Add Schedule 3, line 7, and line 13a and enter the total 14 Subtract line 13b from line 12b. If zero or less, enter-0- 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax. 17 Federal income tax withheld from Forms W-2 and 1099 13b 14 15 16 17 18 Other payments and refundable credits: If you have a qualifying child, a Earned income credit (EIC). 18a attach Sch. EIC. b Additional child tax credit. Attach Schedule 8812 18b If you have nontaxable American opportunity credit from Form 8863, line 8 18c combat pay, see instructions. d Schedule 3, line 14 18d e 19 Add lines 18a through 18d. These are your total other payments and refundable credits Add lines 17 and 18e. These are your total payments 18e 19 20 Refund If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 20 21a Direct deposit? See instructions. b Routing number c Type: Checking Savings d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 Amount You Owe 23 24 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions Estimated tax penalty (see instructions). 23 24 Third Party Designee Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. No (Other than paid preparer) Designee's name Phone no. Personal identification number (PIN) Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Paid Preparer Phone no. Preparer's name Firm's name Use Only Email address Preparer's signature Firm's address Go to www.irs.gov/Form 1040 for instructions and the latest information. Date PTIN Check if: 3rd Party Designee Self-employed Phone no. Firm's EIN Form 1040 (2019)