Please complete the 2020 federal income tax return for James and Ellie Smith. You do not need to attach Form W-2 but you do need to include all relevant forms and schedules. If you think you need information that is not included, make reasonable assumptions to fill in the missing information or ask me.

James and Ellie Smith live in Orlando, Florida. James works in the corporate finance department at Disney. Ellie is a former supply chain manager who currently consults with former contacts but is no longer employed full-time. The Smiths have four children Susan (age 20), Kyle (age 15), Jason (age 12), and Katelynn (age 7). Susan is a full-time student and a university sophomore. All four children qualify as James and Ellie’s federal income tax dependents. The Smiths plan to file a joint tax return. The Smiths provide the following information:
 James’s social security number is 598-94-2583
 Ellie’s social security number is 301-52-2942
 Susan’s social security number is 887-44-8710
 Kyle’s social security number is 810-42-9092
 Jason’s social security number is 855-11-3021
 Katelynn’s social security number is 427-96-3287
 The Smith’s mailing address is 531 South Aspen Way, Orlando, Florida 87509
James Smith reported the following information relating to his employment during the year:
Employer Gross Wages Federal Income Tax
Withholding
Disney $127,150 $12,450
The above amounts do not reflect any income items described below. James’s employer withheld all payroll taxes it was required to withhold. The entire Smith family was covered by minimum essential health insurance during each month in 2020. The insurance was provided by James’s employer, Disney.

Ellie Smith received the following payments during the year (she uses the cash method of accounting).
Consulting revenue reported to her on a Form 1099-MISC, Box 7
Beckham LTD $20,100
BKR Specitalties $18,700

Board of director compensation reported to her on a Form 1099-MISC, Box 7 EGL Logistics, Inc. $8,500

During the year, Ellie paid the following business expenses:
Consultant-related:
Airfare $1,600
Hotel $1,150
Meals $245
Parking $120
Ellie drove 800 business miles for her consulting-related activities (she has documentation to verify)
Board of Director-related:
Meals $110
Hotel $225
Ellie drove 230 business miles for her board of director activities (she has documentation to verify) Neither of Ellie’s business activities required the filing of Form(s) 1099 to report payments she made during the tax year. In addition, Ellie drove a 2015 Honda Civic purchased on March 23, 2015 for all her business mileage. She drove the vehicle a total of 11,259 miles during the year for all purposes. Ellie has written documentation to support the mileage amounts. She also has access to another vehicle for personal purposes.
The Smiths also received the following during the year:
Interest income from First Bank of Florida $220
Interest income from Patterson, Florida School District $400
Interest income from U.S. Treasury Bond $305
Interest income from General Mills corporate bond $115
Qualified dividend income from Phillips 66 $520
Qualified dividend income from Cooper Tire $200
Qualified dividend income from Anthem $425
Qualified dividend income from Netflix $110
Qualified dividend income from Procter & Gamble $245
Qualified dividend income from Kellogg $85
Qualified dividend income from 3M $120
The Smiths did not own, control or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year.

The Smiths had the following activity in their brokerage account during the year (all transactions were reported on a Form 1099-B. Basis information on each stock sale was reported to the IRS):
Sold 2,000 shares of Phillips 66 7/1/20 $22,500
Sold 750 shares of ExxonMobil 4/15/20 $28,750
Sold 350 shares of Cooper Tire 10/14/20 $14,700

Sold 1,000 shares of Anthem 9/3/20 $35,000
Sold 50 shares of Netflix 1/7/20 $2,400
Purchased 100 shares of Procter & Gamble 7/10/20 $7,700
Purchased 350 shares of Cooper Tire 11/1/20 $14,000
Purchased 350 shares of PepsiCo 5/14/20 $32,000
Purchased 300 shares of Kellogg 10/14/20 $21,000
Relevant tax basis/holding period information related to sales of securities in the current year:
Purchased 2,000 shares of Phillips 66 on 5/1/19 for $29,000
Purchased 2,000 shares of ExxonMobil on 3/8/14 for $70,000
Purchased 300 shares of Cooper Tire on 1/12/13 for $15,000
Purchased 50 shares of Cooper Tire on 6/28/19 for $2,000
Received 1,000 shares of Anthem from Ellie’s father as a gift on 10/10/15. Her father’s basis in the stock at the time of the gift was $23,000. Fair market value of the stock at the date of the gift was $41,000
Purchased 100 shares of Netflix on 9/5/17 for $6,000
The Smiths have a $12,100 long-term capital loss carryover from the prior tax year.
The Smiths paid the following expenses during the year and kept all necessary documentation:
Dentist (unreimbursed by insurance) $3,250
Doctors & Hospitals (unreimbursed by insurance) $5,425
Ambulance Ride (unreimbursed by insurance) $1,500
Prescriptions (unreimbursed by insurance) $675
Real property taxes on residence $9,120
Mortgage interest on principal residence (avg. loan balance $480,000) $16,300
Contribution to American Red Cross $2,000
Contribution to World Food Program $4,000
Contribution to local candidate for mayor $500
Contribution to Temple Mount Church $9,000
The Smiths also donated clothing, electronics, furniture and other household goods to the Salvation Army of Orlando, Florida on April 15, 2020 and obtained all necessary documentation. Estimated thrift value of the goods donated was $475.
Miscellaneous Information
Ellie made estimated tax payments during the year of $4,800 in 4 equal installments of $1200.
Neither Ellie nor James participated in a retirement plan at work this year. Each made a $5,000 contribution to a traditional IRA during the year.
The Smiths do not pay income taxes in Florida but paid $1,430 of sales taxes.
During the year, the Smiths paid a portion of Susan’s tuition to attend The University of Central Florida.

They also purchased Susan’s school books. Susan attended the spring and fall semesters as a full-time student. In total, the Smiths paid $8,000 for tuition and fees and $1,500 for books. Susan used $3,000 from a scholarship she received to pay the remaining $3,000 of tuition for the year. Susan was not required to perform any services as a condition of accepting the scholarship. Susan was not employed during the year. UNMs address and employer identification number (EIN) is as follows:
University of Central Florida
106 Ivory Lane
Orlando, FL 32828
EIN- 43-5744781

The Smiths do not want to contribute to the Presidential Election Campaign Fund. The Smiths would also like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check. 4 from a scholarship she received to pay the remaining $3,000 of tuition for the year. Susan was not required to perform any services as a condition of accepting the scholarship. Susan was not employed during the year. UNMs address and employer identification number (EIN) is as follows:
University of Central Florida
106 Ivory Lane
Orlando, FL 32828
EIN- 43-5744781
The Smiths do not want to contribute to the Presidential Election Campaign Fund. The Smiths would also like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.

Answer rating: 100% (QA)

Answer James and Ellie Smith 2020 Federal Income Tax Return The Smiths plan to file a joint tax return The Smiths provide the following information Jamess social security number is 598942583 Ellies so... View the full answer