Please use 2020 tax forms.

Tax Forms you will need to complete;

Form 1040, Schedule 1, Schedule 2, Schedule 3, Schedule A, Schedule B, 2 Form Schedule C (one for Board of director Business, one for consulting business), Schedule D, Form 8949, Schedule E, Schedule SE, Form 8995

Please complete the 2020 Federal Income Tax return for Joseph and Diana Jones. 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.

Joseph and Diana Jones live in Pleasantville, New Jersey. Joseph is the Vice-President of Sales at a small start-up company. Diana is a former advertising executive who currently consults with former clients. She also serves on the board of directors of an advertising company. The Joneses have three children Rebecca (age 18), Alan (age 15) and David (age 12). In January, Rebecca left home to attend a liberal arts college. All three children qualify as Joseph and Dianas dependents. The Joneses plan to file a joint return. The Joneses provided the following information:

• Josephs social security number is 598-94-2583
• Dianas social security number is 301-52-2942
• Rebeccas social security number is 887-44-8710
• Alans social security number is 810-42-9092
• Davids social security number is 855-11-3021

Joseph Jones reported the following information relating to his employment during the year:

Employer	Gross Wages	Federal Income Tax Withheld	State Income Tax Withheld
Alternative Energy	$152,325	$26,230	$8,900

The above amounts do not reflect any income items described below. Josephs employer withheld all payroll taxes it was required to withhold. The entire Jones family was covered by minimum essential health insurance during each month in 2020. The insurance was provided by Josephs employer, Alternative Energy.

Diana Cohen received the following revenue during the year (she uses the cash method of accounting).

Consulting Revenue reported to her on a from 1099-NEC, Box 1

High End Retail $32,000

Jensens Health Products $8,500

Strategic Solutions $4,750

Board of Director Compensation reported to her on Form 1099-NEC Box 1

Natural Sunshine, Inc. $7,200

In each of these self employment endeavors, Diana is an active participant, and both activities are considered specified service trade or businesses for purposes of the Qualified Business Income Deduction. Assume both Activities qualify as a trade or business.

During the year, Diana paid the following business expenses for each activity

Consultantrelated

Airfare $2,900

Hotel $1,550

Meals $420

Parking $320

Diana drove 290 business miles for consulting-related activities (she has documentation to verify).

Board of Director Activity

Meals $140

Hotel $225