Question: Note: This problem is for the 2020 tax year. This is one question. Logan B. Taylor is a widower whose wife, Sara, died on June

Note: This problem is for the 2020 tax year. This is one question.

Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2018. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2020, he had the following receipts:

Salary $ 80,000
Interest income
Money market account at Omni Bank $300
Savings account at Boone State Bank 1,100
City of Springfield general purpose bonds 3,000 4,400
Inheritance from Daniel 60,000
Life insurance proceeds 200,000
Amount from sale of St. Louis lot 80,000
Proceeds from estate sale 9,000
Federal income tax refund (for 2019 tax overpayment) 700

Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2020. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2015, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2020, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died.

Logan's expenditures for 2020 include the following:

Medical expenses (including $10,500 for dental) $13,500
Taxes
State of Missouri income tax (includes withholdings during 2020) $4,200
Property taxes on personal residence 4,500 8,700
Interest on home mortgage (Boone State Bank) 5,600
Contribution to church (paid pledges for 2020 and 2021) 4,800

While Logan and his dependents are covered by his employer's health insurance policy, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2020, upon the advice of his pastor, he prepaid his pledge for 2021.

Logan's household, all of whom he supports, includes the following:

Social Security Number Birth Date
Logan Taylor (age 48) 123-45-6787 08/30/1972
Helen Taylor (age 70) 123-45-6780 01/13/1950
Asher Taylor (age 23) 123-45-6783 07/18/1997
Mia Taylor (age 22) 123-45-6784 02/16/1998

  1. Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married.

    Federal income tax of $4,200 was withheld from his wages.

    Required:

    Compute Logan's income tax for 2020. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes were withheld. Logan received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Logan does not own and did not use any virtual currency during the year, and he does not want to contribute to the Presidential Election Campaign Fund.

    • Make realistic assumptions about any missing data.
    • Enter all amounts as positive numbers except any losses. Use the minus sign to indicate a loss.
    • If an amount box does not require an entry or the answer is zero, enter "0".
    • It may be necessary to complete the other tax schedules before completing Form 1040.
    • Use the included tax rate schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.

There are tabs that should be filled I just added the names here I added the all the information, but it doesn't let me. Please see the followings.

1. 1040 form

2. Schedule A and Schedule D

3. Form 8949

4. Follow up advise letter

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