Prepare a basic individual tax return from the information provided in the module. Refer to form 1040 and the related instructions. It would help if you worked this out manually to understand better how the information ties together; do not use TurboTax or any other software where tax liability is automatically calculated from the information input. You have sufficient information to calculate gross income, adjusted gross income, tax liability, and the amount due/refund with the return. Clearly, all lines on the 1040 and its schedules will not be needed, but make any assumptions you need.

Information for Canvas Assignment 5 – Basic Individual Tax Return

John Doe, Single, age 36

123 Main Street, Knoxville TN 37922

Date of birth – 5/29/83

SSAN 123-45-6789

W- 2 Information ( go back to Payroll Accounting on W-2 information if needed)

Wages $75,351

Federal withholding $ 9605

Social security wages 75351

Social security withholding 4672

Medicare wages 75,351

Medicare withholding 1093

Other financial information:

Interest Income- XYZ Bank - 265; ABC Bank -275, from savings accounts

Alimony paid – 650/month for 10 months under 2/21/20 divorce decree – paid to Jane Doe SSN 987-65-4321

Other 2020 expenses:

Home mortgage interest – 7670

Auto loan interest 1325

Credit card interest - 730

Property tax on residence 2342

State income taxes 2050

Unreimbursed hospital bill 6300

Doctor bills 2760

Other qualifying medical exp. 725

Income tax preparation fee 425

Job hunting expense 925

Cash donations to church 885

Casualty loss -Theft of personal property that cost 9000 and had a fair value of 15750

Prepare a 1040 and any necessary schedules, including Schedule A for John Doe for 2020

Answer rating: 100% (QA)

To prepare John Does 2020 tax return we will start with Form 1040 and include any necessary schedule... View the full answer