Please complete the 2020 federal income tax return for Bob and Melissa Johnson. Ignore the requirement to
Question:
Please complete the 2020 federal income tax return for Bob and Melissa Johnson. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps.
Bob (age 43) and Melissa (age 53) Johnson are married and live in Lexington Kentucky. The Johnsons have two children: Jared, age 15, and Alese, age 12. The Johnsons would like to file a joint tax return for the year.
The following information relates to the Johnson’s tax year:
- Bob’s Social Security Number is 987-45-1235
- Melissa’s Social Security Number is 494-37-4893
- Jared’s Social Security Number is 412-32-5690
- Alese’s Social Security Number is 412-32-6940
- The Johnson’s mailing address is 95 Hickory Road, Lexington, Kentucky 40502
- Jared and Alese are tax dependents for federal tax purposes
Bob Johnson’s Form W-2 provided the following wages and withholding for the year:
Employer | Gross Wages | Federal Income Tax Withholding | State Income Tax Withholding |
National Storage | $69,200 | $8,000 | $3,550 |
Lexington Little League | $4,510 | 0 | 0 |
Melissa Johnson’s From W-2 provided the following wages and withholding for the year:
Employer | Gross Wages | Federal Income Tax Withholding | State Income Tax Withholding |
Jensen Photography | $46,500 | $5,450 | $2,425 |
All Applicable and appropriate payroll taxes were withheld by the Johnson’s respective employers. All the Johnson family was covered by minimum essential health insurance during each month in 2020. The insurance was provided by Bob’s primary employer, National Storage.
The Johnsons also received the following during the year:
Interest Income from First Kentucky Bank | $150 |
Interest Income from City of Lexington, KY Bond | $450 |
Interest Income from U.S. Treasury Bond | $700 |
Interest Income from Nevada State School Board Bond | $150 |
Workers’ Compensation payments to Bob | $4,350 |
Disability payments received by Bob due to injury – National Storage paid 100% of the premiums on the policy and included the premium payments in Bob’s taxable wages | $3,500 |
Melissa received the following payments due to a lawsuit she filed for damages sustained in a car accident:
- Medical Expenses for Physical injuries $ 2,500
- Emotional Distress( from having been Physically injured) $12,000
- Punitive Damages $10,000
Total $24,500
Eight years ago, Melissa purchased an annuity contract for $88,000. She received her first annuity payment on January 1, 2020. The annuity will pay Melissa $15,000 per year for ten years (beginning this year). The $15,000 payment was reported to Melissa on form 1099-R for the current year (box 4 contained an entry of “7” on the form).
The Johnsons did not own, control or manage any foreign bank accounts nor were they grantors or beneficiaries of a foreign trust during the year.
The Johnsons paid or incurred the following expenses during the year:
Dentist/Orthodontist (unreimbursed by insurance) | $10,500 |
Doctor fees (unreimbursed by Insurance) | $3,025 |
Prescriptions (unreimbursed by insurance) | $980 |
KY state tax payments made on 4/15/20 for the 2019 tax return liability | $1,350 |
KY state income taxes withheld during 2020 | $5,975 |
Real Property taxes on residence | $3,900 |
Vehicle registration fee based upon age of vehicle | $1,350 |
Mortgage interest on principal residence | $18,500 |
Interest paid on borrowed money to purchase the City of Lexington, KY municipal bond | $400 |
Interest paid on borrowed money to purchase U.S Treasury Bonds | $240 |
Contribution to the Red Cross | $1,000 |
Contribution to Senator Rick Hartley’s Re-Election Campaign | $3,500 |
Contribution to First Baptist Church of Kentucky | $6,000 |
Fee paid to Jones & Company, CPA for tax preparation | $200 |
In addition, Bob drove 6,750 miles commuting to work and Melissa drove 8,230 miles commuting to work. The Johnsons have represented to you that they maintained careful logs to support their respective mileage.
The Johnsons drove 465 miles in total to receive medical treatment at a hospital in April.
The Johnsons both wanted to contribute to the Presidential Election Campaign Fund. The Johnsons would like to receive a refund (if any) of any tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.
Expert Answer:
1040 For the year Jan 1Dec 31 2016 or other tax year beginning Your first name and initial Filing St... View the full answer
