TAX RETURN PROJECT $1$

Problems: Chapter $3-45($Logan B$.$ Taylor$)$ South$-$Western$$s Federal Taxation, Comprehensive Volume $(2021).$ Prepare the Tax Return for $2020.$

Changes to Problem: Change all year$-$ends to one year later; that is$,$ for example, $2019$ becomes $2020.$

The following information should be helpful in your preparation of the tax return.

$(1)($a$)$Requirements: Prepare the federal income tax return on the appropriate IRS forms. forms and instructions are available at www$.$irs.gov.

$($b$)$Additional Requirements: Prepare a brief top sheet summarizing the factual information in the format of the tax formula

$(2)$Strategy: You might want to start with page $1$ of the $1040$ and manually make entries $($pencil recommended$).$ You may then need to do subsidiary forms $($e$.$g$.,$ Schedules A & B$).$ You might also want to work out the figures for the tax formula roughly first before beginning the return.

$(3)$Check figures:

Adjusted gross income $78,400$ Itemized $26,720$

Taxable income $50,700$

Taxpayer wants greater of itemized or standard. Still show Sch$.$ A$.$