***THE BLUE BOXES ARE THE ONES YOU NEED TO ANSWER ON THE FORM***

Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessie's income is $839. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: $ 129,900 18,480 1,730 732 936 Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to the Red Cross $ 13,700 6,560 7,514 6,360 326 1,230 16,800 2,460 1,770 2,560 5,140 153 2,310 1,678 5,940 3,360 12,780 565 b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A. (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.) Joe's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123 Form 1040 Page 1. Department of the Treasury, Form Internal Revenue Service (99) 1040 U.S. Individual 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Income Tax Return Married filing Filing Status Single Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) jointly Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is a child but not your dependent. I Your first name and middle initial Last name Your social security number one box If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Yes No Check here if you, or your spouse if City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. Foreign country name Foreign province/state/county Foreign postal code You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Someone can Standard claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness Were born before January 2, 1956 Are blind Spouse: Was bom before January 2, 1956 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) Vif qualifies for (see instructions): Credit for other (1) First name Last name Child tax credit dependents If more than four dependents, see instructions and check here You: 1 2a 2b 3b 4a 4b 5b 6b 7 8 9 0 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach Sch. B if 2a Tax-exempt interest b Taxable interest required. 3a Qualified dividends 3a b Ordinary dividends 4a IRA distributions b Taxable amount 5a Pensions and annuities 5a b Taxable amount 6a Social security benefits Taxable amount 7 Capital gain or loss). Attach Schedule Dif required. If not required, check here Standard Deduction for- 8 Other income from Schedule 1, line 9 Single or Married filing separately, 9 Add lines 1, 2b, 36, 4b, 56, 66, 7, and 8. This is your total income $12,400 Married filing 10 Adjustments to income: jointly or Qualifying a From Schedule 1, line 22 10a widow(er), $24,800 Charitable contributions if you take the standard deduction. See instructions 10b Head of household, c Add lines 10a and 10b. These are your total adjustments to income $18.650 If you checked 11 Subtract line 10c from line 9. This is your adjusted gross income any box under Standard 12 Standard deduction or itemized deductions (from Schedule A) Deduction, see instructions. 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 14 Add lines 12 and 13 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 10c 0 11 0 12 13 14 0 15 0 Form 1040 (2020) Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessie's income is $839. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: $ 129,900 18,480 1,730 732 936 Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to the Red Cross $ 13,700 6,560 7,514 6,360 326 1,230 16,800 2,460 1,770 2,560 5,140 153 2,310 1,678 5,940 3,360 12,780 565 b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A. (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.) Joe's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123 Form 1040 Page 1. Department of the Treasury, Form Internal Revenue Service (99) 1040 U.S. Individual 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Income Tax Return Married filing Filing Status Single Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) jointly Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is a child but not your dependent. I Your first name and middle initial Last name Your social security number one box If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Yes No Check here if you, or your spouse if City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. Foreign country name Foreign province/state/county Foreign postal code You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Someone can Standard claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness Were born before January 2, 1956 Are blind Spouse: Was bom before January 2, 1956 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) Vif qualifies for (see instructions): Credit for other (1) First name Last name Child tax credit dependents If more than four dependents, see instructions and check here You: 1 2a 2b 3b 4a 4b 5b 6b 7 8 9 0 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach Sch. B if 2a Tax-exempt interest b Taxable interest required. 3a Qualified dividends 3a b Ordinary dividends 4a IRA distributions b Taxable amount 5a Pensions and annuities 5a b Taxable amount 6a Social security benefits Taxable amount 7 Capital gain or loss). Attach Schedule Dif required. If not required, check here Standard Deduction for- 8 Other income from Schedule 1, line 9 Single or Married filing separately, 9 Add lines 1, 2b, 36, 4b, 56, 66, 7, and 8. This is your total income $12,400 Married filing 10 Adjustments to income: jointly or Qualifying a From Schedule 1, line 22 10a widow(er), $24,800 Charitable contributions if you take the standard deduction. See instructions 10b Head of household, c Add lines 10a and 10b. These are your total adjustments to income $18.650 If you checked 11 Subtract line 10c from line 9. This is your adjusted gross income any box under Standard 12 Standard deduction or itemized deductions (from Schedule A) Deduction, see instructions. 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 14 Add lines 12 and 13 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 10c 0 11 0 12 13 14 0 15 0 Form 1040 (2020)