Note: This problem is for the 2020 tax year. additional tax is due, assume no underpayment penalty applies. Daniel B. Butler and his spouse Freida C. Butler file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social It may be necessary to complete the tax schedules before completing Form 1040. Security number is 111-11-1112, and Freida's is 123-45-6780. Dan was born on January 15, 1969, and Freida was born on August 20, 1970. Enter all amounts as positive numbers. . If an amount box does not require an entry or the answer is zero, enter "0". During 2020, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home: . When computing the tax liability, do not round your immediate calculations. a. Gina, their daughter, age 22, a full-time student, who married on December 21, has no income of her own and did not file a joint . If required, round your answers to the nearest dollar. return with her husband, Casey, who earned $10,600 during 2020. Gina's Social Security number is 123-45-6788. . Make realistic assumptions about any missing data. b. Willie, their son, age 19, graduated high school in May 2020. He is taking a leap year and will not begin college until 2021. He had . Use the Tax Rate Schedule provided. Do not use the Tax Tables. gross income of $6,300 in 2020. Willie's Social Security number is 123-45-6787. c. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45- 6786. Form 1040 Dan was employed as a manager by WII], Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), Complete the Butler's Form 1040. Form and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Department of the Treas Corbin, KY 40701). Selected information from the W-2 forms provided by the employers is presented below. Dan and Freida use the 1040 U.S. Individual Income Tax Return 2020 OMB No. 1545-0074 IRS Use Only cash method, Filing Status Married filing jointly Line Description Dan Freida Your first name and middle initial Last name Your social security number Daniel Butler 111-11-1112 Wages, tips, other compensation $74,000 $86,000 If joint return, spouse's first name and middle initial Last name ipouse's social security number 2 Federal income tax withheld 11,000 12.400 Freida C Butler 123-45-6760 17 State income tax withheld 2.960 3.440 Home address (number and street). If you have a RO. box, see instructions, Apt. no. Presidential Election Campaign Freida sold a house on December 30, 2020, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) None - on the January 10, 2021, closing date. Foreign country name Foreign provinon'state/county Foreign postal code Other income (as reported on 1099 Forms) for 2020 consisted of the following: At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? No Dividends on CSX stock (qualified) $4,200 Standard omeone can claim: None - Deduction Interest on savings at Second Bank 1,600 Your Nome - Interest on City of Corbin bonds 900 Age/ Blindness Spouse: None Interest on First Bank CD 382 Dependents (see instructions): (2) Social security (3) Relationship (4) / if qualifies for (see instructions]: If more than four (1) First name Last name number DO YOU The $382 from First Bank was an original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on Child tax credit Credit for other dependents dependents. set September 30, 2020. The CD was purchased on October 1, 2018, for $14,995, and the yield to maturity was 3.3%. Dependents (see instructions) (2) Social security (3) Relationship (4)