Question

Please 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 $122,000. Fareh’s only other income was interest of $7,300, qualifying dividends of $3,150, and other information follows:

Contribution to solo(k) retirement plan, withheld from the salary $ 4,500

Loss on sale of Alphatech stock held 2 years -3,700

Mortgage interest on primary residence 6,950

State and local property tax on residence 8,350

Property tax included in personal auto registration 160

State sales taxes paid 370

State income taxes paid 1,800

Charitable contributions of cash 1,750

Political contributions 550

Three comments that will help:

• The solo(k) [acutally a 401(k)] contribution was withheld from salary, so reported salary from the W-2 is $117,500.
• Qualified dividends are included in ordinary dividends.
• 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.

Answer 1