Why did you cancelled my question, I asked to help me and show me wher all the numbers goes, I did the same with the other question Huxley and one of you responded correctly based on the problem question.

CAn you show me wher all this info goes, like in which form and line, please?

And please do not cancell my question before ansewring.

you have answerd only one piece of it, can yopu answer the full question, thank you

It is the same question that I did it 2 times, however I will included again. Thank you

Carnes, Fundamentals of TaxationIndividuals and Business Entities

2026 Edition

Comprehensive Tax Return Problem

Full TextAlvarez

2025 Problem Narrative

Glen Alvarez would like you to prepare his tax return based on the following information and source documents. Complete Form 1040, Schedule 1, Schedule 2, Schedule A, Schedule C, Schedule D, Form 8949, Schedule SE, Form 4562, Form 8283, Form 8812, and Form 8995. (We use 2024 tax forms to complete this return because 2025 forms were not available at the time of publication.)

Glen Alvarez, age 35, is a widower who lives at 937 Chestnut St., in Chico, CA, 95928. His social security number is 123-12-1234. Glen's wife, Michelle, passed away on December 26, 2024, due to cancer. Glen was the beneficiary of his wife's life insurance policy. He received a $50,000 payout from the policy on Jan. 3, 2025.

Glen has one son, Rene, age 6 (SSN 111-11-1111), who lives with him, along with Glen's mother, Claire Alvarez (SSN 222-22-2222), age 52. Glen has no other children. Claire relocated from Portugal in December of last year to help Glen care for Rene. Glen provides more than one-half the support for his son and his mother, as well as his father, Pascoal Alvarez, age 60, who resides in Portugal.

Glen works for the Norfield Manufacturing Co. in Chico as a line manager and received a form W-2 reporting his 2025 earnings and withholdings. Glen has medical insurance through his employer for himself, his mother and his son. It is a high deductible healthcare plan (HDHP) plan and Glen has opened a health savings account (HSA). His employer withheld $5,000 from his pay to fund the HSA plan this year. Out of pocket medical expenses exceeded $5,000 for 2025.

Norfield Manufacturing, Glen's employer, requires all its manufacturing plant employees to wear protective clothing. Glen spent $125 for hard hats, $350 for steel toed work boots and $175 for an insulted jacket to keep him warm while working. Glen's boss encouraged him to join the California Manufacturers Association and Glen did so, paying $721 for the annual membership fee.

In addition to his regular job, Glenn decided he needed a "side-hustle" and began a lawn care service on February 1, 2025. His clients include friends and neighbors, and two small local businesses from which he received two Form 1099-NEC income forms. Demand for his lawn care service has grown quickly and Glenn earned $24,361 in gross income from his business, including the income earned on Form 1099-NEC. He also purchased the equipment and supplies listed below and placed them in service on February 1, 2025. Glenn has provided receipts for all items. The used truck and all the equipment have a 5-year life, and he does not elect the Section 179 deduction or use bonus depreciation. Glenn uses a room in his home exclusively for a home office. The room's square footage is 150 feet, and the homes square footage is 1500. He chooses to use the simplified method to compute his home office deduction.

List of purchases and expenses:

1. Husqvarna 42" Power Z6 Zero Turn Mower, $5,448

2. 12 ft. SLE Utility Trailer, $1,568

3. Stihl commercial weed eater, $456

4. Makita Backpack Leaf Blower, $653

5. Lowe's lawn & garden supply products, $1,546.63

6. Meals while working late, $52

7. Used truck purchase, $7,500. (Date acquired was February 1, 2025.)

8. Parking ticket, $46

9. Gas receipts of $470 ($125 for equipment & $345 for truck)

10. Truck oil change, service and flat tire repair, $152

11. Truck registration fee (including $60 vehicle license fee), $121

12. Disability insurance, $165

13. Vehicle and liability insurance $650

14. Lawn service miles driven 940; total miles were 2,873. (Glenn has kept a mileage log)

15.Tax preparation fee, $250

During 2025, Glenn was injured from a dog bite while doing landscaping for a client. The dog's owner was walking the dog off-leash and was at fault. Glenn sued his client, and the owner paid Glenn $9,000 for physical injuries treated at the hospital emergency and $5,000 in punitive damages.

Glen purchased a home in Chico in 2022 securing a loan from Commerce Home Mortgage and received a Form 1098 for the 2025 mortgage interest paid. His original mortgage was $350,000. He also made home renovations by upgrading and enlarging the guest bathroom and adding cabinetry to the kitchen, paying $4,500 to Lowes for project materials. In addition, Glen paid real estate taxes for his home in the amount of $3,750. He also paid California state income tax in the amount of $8,757, and total sales tax for the year of $2,345.

Glen decided to sell some of his blue-chip stocks and reinvest the proceeds in tech stocks instead. On Nov. 30, 2025, Glen sold 60 shares of IBM stock for $7,750. He purchased the stock on March 31, 2023, for $6,500. On Dec.1, 2025, he sold 55 shares of Proctor& Gamble for $7,700. He had purchased the shares on Jan. 10, 2023, for $6,930.

On Dec. 1, 2025, Glen purchased 500 shares of Micro-tech at $30/share. However, the stock did not perform as expected and Glen sold the stock on Dec. 26 for $25/share. The stock began to rebound, and Glen purchased 500 Micro-tech shares on Jan. 20, 2026, for $31/share. He also purchased 50 shares of Oxy-tech stock on Dec. 1, 2024, for $10/share.

Glen received the following 1099 forms related to his investments:

1.1099-INT from First Bank of Chico

2.1099-INT from Butte County

3.1099-DIV from AbbVie

4.1099-DIV from Iron Mountain

5.1099-B Proctor & Gamble

6.1099-B IBM

7.1099-B Micro-tech

Glen paid the following 2025 medical expenses:

Doctor bills $4,500

Orthodontist $6,000

Hair recovery (implants) $2,500

Prescription drugs $ 325

Over-the-counter allergy medicine $ 65

Eyeglasses (Rene) $ 350

Other 2025 contributions and financial information are as follows:

Glen contributed $6,500 to Grace Community Church of Chico and gave $5,500 to the March of Dimes

Glen donated his wife's clothing to the Salvation Army, which had a retail value of $12,500 and thrift store value of $2,750. The clothing was in very good condition.

Glen helped Rene with the Thanksgiving canned-food drive sponsored by Rene's school. Glen and Rene were successfully able to collect over $150 of canned food for the drive.

Claire Alvarez decided to take a night class at the local college to help improve her English-speaking skills. The cost of the non-credit class was $350, which Glen paid.

For entertainment, Glen enjoys horse-racing and betting on the races. During the current year, Glen had $1,256 in gambling losses. He also received a form W2-G from the Red Bluff Racetrack reporting his gambling winnings.