Tax Return 1, Fall 2020Please complete a 2020 Form 1040 for Fareh:Fareh is not married and supports her 12-year old child who lives with her. Fareh works as an employee with gross salaries and wages of $92,000. Fareh’s only other income was interest of $7,300, qualifying dividends of $2,450, and other information follows: Contribution to Sec. 401(k) retirement plan, withheld from the Gross salary above$ 3,500 Loss on sale of Alphatech stock held 2 years -3,400 Mortgage interest on primary residence 6,950 State and local property tax on residence 8,350 Property tax included in personal auto registration 260 State sales taxes paid 370 State income taxes paid 1,450 Charitable contributions of cash 1,750 Political contributions 550 Three comments that will help: The Sec. 401(k) contribution was withheld from salary, so reported salary from the W-2 is $88,500. Qualified dividends are included in ordinary dividends on the form 1040. You are not required to complete the Schedule D Worksheet. Just consult the last example in “drnos Capital Gain calcs 2020.ppt” to calculate the tax.
Tax Return 1, Fall 2020Please complete a 2020 Form 1040 for Fareh:Fareh is not married and supports her 12-year old child who lives with her. Fareh works as an employee with gross salaries and wages of $92,000. Fareh’s only other income was interest of $7,300, qualifying dividends of $2,450, and other information follows:
Contribution to Sec. 401(k) retirement plan, withheld from the
Gross salary above$ 3,500
Loss on sale of Alphatech stock held 2 years -3,400
Mortgage interest on primary residence 6,950
State and local property tax on residence 8,350
Property tax included in personal auto registration 260
State sales taxes paid 370
State income taxes paid 1,450
Charitable contributions of cash 1,750
Political contributions 550
Three comments that will help:
The Sec. 401(k) contribution was withheld from salary, so reported salary from the W-2 is $88,500.
Qualified dividends are included in ordinary dividends on the form 1040.
You are not required to complete the Schedule D Worksheet. Just consult the last example in “drnos
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