Question: I need help preparing a 1040 tax return and any necessary schedules with the following information provided. Relevant Client Information: Social Security Numbers: Joe: 123-45-6789
I need help preparing a 1040 tax return and any necessary schedules with the following information provided.
Relevant Client Information:
Social Security Numbers:
- Joe: 123-45-6789
- Jill: 333-222-111
- Hunter (son): 555-77-6666
Ages:
- Joe: 73
- Jill: 69
- Hunter: 11
Jill paid $7,000 in childcare expenses for Hunter while she worked.
Salaries:
- Joe: $35,000
- Jill: $30,000
- Hunter: $600
Interest & Dividends:
- Interest from Mellon Bank: $6,000
- Interest on Delaware municipal bonds: $4,000
- Dividends on Microsoft, Inc. stock: $2,000
Sold 1,000 shares of IBM stock for $6,000 on January 15, 2021. Shares were purchased on January 15, 2014, for $3,000.
Real Estate:
- Joe and Jill rented out the old family home in Delaware for the entire year.
- Rental income: $9,000
- Mortgage interest: $4,000
- Depreciation: The house was purchased on 12/01/19 at a cost of $100,000 and has depreciated on a straight-line basis over 27.5 years. Accumulated Depreciation from prior years was $3,788.
- Mortgage interest on the white house owned by Joe and lived in by family: $8,000
- Real estate taxes on the white house: $8,000.
Taxes Paid:
- State income taxes withheld from Joes wages: $6,000
- Federal income taxes withheld from Joes wages: $4,000
- Delaware City sales tax paid by Joe: $1,800.
- State income tax refund of 2020 overpayment received in 2021: $2,000 (2020 state income taxes were fully deductible on the 2020 tax return)
Miscellaneous:
- Joe had $5,000 of business travel expenses, which were reimbursed by his employer.
- Joe contributed $6,000 to Syracuse University, and $7,000 to Delaware University during the year.
- Jill paid $4,000 of student loan interest.
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