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taxation

Open Posted By: surajrudrajnv33 Date: 24/10/2020 High School Research Paper Writing

Fill out the Santander tax forms, and provide solutions in a word document. The solution must be in the same format as the Smith tax calculation. 


I have attached the example for your reference. (the Smith tax form is the example) 


Category: Engineering & Sciences Subjects: Electrical Engineering Deadline: 24 Hours Budget: $80 - $120 Pages: 2-3 Pages (Short Assignment)

Attachment 1

Fo rm1040 Department of the Treasury—Internal Revenue Service (99)U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.

Filing Status Check only one box.

Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW)

If you checked the MFS box, enter the name of 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.

Your first name and middle initial Last name Your social security number

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.

City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).

Foreign country name Foreign province/state/county Foreign postal code

Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse

Standard Deduction

Someone can claim: You as a dependent Your spouse as a dependent

Spouse itemizes on a separate return or you were a dual-status alien

Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind

If more than four dependents, see instructions and here

Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents

1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . 1

2a Tax-exempt interest . . . . 2a b Taxable interest. Attach Sch. B if required 2b

3a Qualified dividends . . . . 3a b Ordinary dividends. Attach Sch. B if required 3b

4a IRA distributions . . . . . 4a b Taxable amount . . . . . . 4b

c Pensions and annuities . . . 4c d Taxable amount . . . . . . 4d

5a Social security benefits . . . 5a b Taxable amount . . . . . . 5b

6 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . . . 6

7a Other income from Schedule 1, line 9 . . . . . . . . . . . . . . . . . . . . 7a

b Add lines 1, 2b, 3b, 4b, 4d, 5b, 6, and 7a. This is your total income . . . . . . . . . . . 7b

8 a Adjustments to income from Schedule 1, line 22 . . . . . . . . . . . . . . . . . 8a

b Subtract line 8a from line 7b. This is your adjusted gross income . . . . . . . . . . . 8b

9 Standard deduction or itemized deductions (from Schedule A) . . . . .

Standard Deduction for— • Single or Married

filing separately, $12,200

• Married filing jointly or Qualifying widow(er), $24,400

• Head of household, $18,350

• If you checked any box under Standard Deduction, see instructions.

9

10 Qualified business income deduction. Attach Form 8995 or Form 8995-A . . . 10

11a Add lines 9 and 10 . . . . . . . . . . . . . . . . . . . . . . . . . 11a

b Taxable income. Subtract line 11a from line 8b. If zero or less, enter -0- . . . . . . . . . . . 11b

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2019)

SMITH 037-40-1234

121 COOKE STREET

SMITH 698-44-4444

24,400.

26,500. 101,601.

116,000.

131,900.

128,101.

2,100.3,500.

11,300.

3,799.

2,500.2,500.

2,100.

PETER SMITH 356-87-7411 Son ADDISON SMITH 585-41-1189 Daughter

THOMAS

RITA

EAST PROVIDENCE RI 02914

Form 1040 (2019) Page 2 12a Tax (see inst.) Check if any from Form(s): 1 8814 2 4972 3 12a

b Add Schedule 2, line 3, and line 12a and enter the total . . . . . . . . . . . . . . 12b

13a Child tax credit or credit for other dependents . . . . . . . . . . 13a

b Add Schedule 3, line 7, and line 13a and enter the total . . . . . . . . . . . . . . 13b

14 Subtract line 13b from line 12b. If zero or less, enter -0- . . . . . . . . . . . . . . . 14

15 Other taxes, including self-employment tax, from Schedule 2, line 10 . . . . . . . . . . . . 15

16 Add lines 14 and 15. This is your total tax . . . . . . . . . . . . . . . . . . 16

17 Federal income tax withheld from Forms W-2 and 1099 . . . . . . . . . . . . . . . 17

18 Other payments and refundable credits:

a Earned income credit (EIC) . . . . . . . . . . . . . . . • If you have a

qualifying child, attach Sch. EIC.

• If you have nontaxable combat pay, see instructions.

18a

b Additional child tax credit. Attach Schedule 8812 . . . . . . . . . 18b

c American opportunity credit from Form 8863, line 8 . . . . . . . . 18c

d Schedule 3, line 14 . . . . . . . . . . . . . . . . . 18d

e Add lines 18a through 18d. These are your total other payments and refundable credits . . . . . 18e

19 Add lines 17 and 18e. These are your total payments . . . . . . . . . . . . . . . 19

Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid . . . . . . 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here . . . . . . 21a

Direct deposit? See instructions.

b Routing number c Type: Checking Savings

d Account number

22 Amount of line 20 you want applied to your 2020 estimated tax . . . . 22

Amount You Owe

23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions . . . . . 23

24 Estimated tax penalty (see instructions) . . . . . . . . . . . 24

Third Party Designee (Other than paid preparer)

Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below.

No Designee’s name

Phone no.

Personal identification number (PIN)

Sign Here

Joint return? See instructions. Keep a copy for your records.

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.)

Spouse’s signature. If a joint return, both must sign. Date Spouse’s occupation If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.)

Phone no. Email address

Paid Preparer Use Only

Preparer’s name Preparer’s signature Date PTIN Check if:

3rd Party Designee

Self-employedFirm’s name Phone no.

Firm’s address Firm’s EIN

Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2019)

9,894. 1,597. 11,491.

X X X X X X X X X X X X X X X X X X X X X X X X X X

05/29/2020 P00215035 JOSEPH M. DEMELLO, CPA (401)481-1040

JOSEPH DEMELLO

SALESMAN

CONSULTANT

13,894. 13,894.

4,000. 4,000.

11,200.

12,400. 909. 909.

1,200. 1,200.

64 CHURCH STREET WARREN RI 02885

BAA REV 05/19/20 PRO

SCHEDULE 1 (Form 1040 or 1040-SR)

Department of the Treasury Internal Revenue Service

Additional Income and Adjustments to Income Attach to Form 1040 or 1040-SR.

Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

2019 Attachment Sequence No. 01

Name(s) shown on Form 1040 or 1040-SR Your social security number

At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . 1 2a Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a b Date of original divorce or separation agreement (see instructions)

3 Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . . . . 3 4 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . . 5 6 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . 6 7 Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . 7 8 Other income. List type and amount

8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a . . . . . . . . 9

Part II Adjustments to Income 10 Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 11

Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

12 Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . . . . 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . 13 14 Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . 14 15 Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . . . . 15 16 Self-employed health insurance deduction . . . . . . . . . . . . . . . . . . . . 16 17 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . 17 18a Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18a

b Recipient’s SSN . . . . . . . . . . . . . . . . . . . . . c Date of original divorce or separation agreement (see instructions)

19 IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20 Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . . . 20 21 Tuition and fees. Attach Form 8917 . . . . . . . . . . . . . . . . . . . . . . 21 22

Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040 or 1040-SR) 2019

THOMAS & RITA SMITH 037-40-1234

799.

3,799.

11,300.

11,300.

3,000.

REV 05/19/20 PRO

SCHEDULE 2 (Form 1040 or 1040-SR) 2019

Additional Taxes Department of the Treasury Internal Revenue Service

Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

Attachment Sequence No. 02

Name(s) shown on Form 1040 or 1040-SR Your social security number

Part I Tax 1 Alternative minimum tax. Attach Form 6251 . . . . . . . . . . . . . . . . . . . 1 2 Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . . . . . . . 2 3 Add lines 1 and 2. Enter here and include on Form 1040 or 1040-SR, line 12b . . . . . . . . 3

Part II Other Taxes 4 Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . 4 5 Unreported social security and Medicare tax from Form: a 4137 b 8919 . . . . . 5 6

Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

7a Household employment taxes. Attach Schedule H . . . . . . . . . . . . . . . . . 7a b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required . . . . 7b

8 Taxes from: a Form 8959 b Form 8960 c Instructions; enter code(s) 8

9 Section 965 net tax liability installment from Form 965-A . . . . . . . 9 10

Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 2 (Form 1040 or 1040-SR) 2019

THOMAS & RITA SMITH 037-40-1234

1,597.

1,597. REV 05/19/20 PRO

SCHEDULE 3 (Form 1040 or 1040-SR)

Department of the Treasury Internal Revenue Service

Additional Credits and Payments Attach to Form 1040 or 1040-SR.

Go to www.irs.gov/Form1040 for instructions and the latest information.

OMB No. 1545-0074

2019 Attachment Sequence No. 03

Name(s) shown on Form 1040 or 1040-SR Your social security number

Part I Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required . . . . . . . . . . . . . . . . . . 1 2 Credit for child and dependent care expenses. Attach Form 2441 . . . . . . . . . . . . 2 3 Education credits from Form 8863, line 19 . . . . . . . . . . . . . . . . . . . . 3 4 Retirement savings contributions credit. Attach Form 8880 . . . . . . . . . . . . . . 4 5 Residential energy credits. Attach Form 5695 . . . . . . . . . . . . . . . . . . . 5 6 Other credits from Form: a 3800 b 8801 c 6 7 Add lines 1 through 6. Enter here and include on Form 1040 or 1040-SR, line 13b . . . . . . . 7

Part II Other Payments and Refundable Credits 8 2019 estimated tax payments and amount applied from 2018 return . . . . . . . . . . . 8 9 Net premium tax credit. Attach Form 8962 . . . . . . . . . . . . . . . . . . . . 9

10 Amount paid with request for extension to file (see instructions) . . . . . . . . . . . . . 10 11 Excess social security and tier 1 RRTA tax withheld . . . . . . . . . . . . . . . . . 11 12 Credit for federal tax on fuels. Attach Form 4136 . . . . . . . . . . . . . . . . . . 12 13 Credits from Form: a 2439 b Reserved c 8885 d 13 14 Add lines 8 through 13. Enter here and on Form 1040 or 1040-SR, line 18d . . . . . . . . . 14

For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 3 (Form 1040 or 1040-SR) 2019

THOMAS & RITA SMITH 037-40-1234

1,200.

1,200.

REV 05/19/20 PRO

SCHEDULE B (Form 1040 or 1040-SR)

Department of the Treasury Internal Revenue Service (99)

Interest and Ordinary Dividends Go to www.irs.gov/ScheduleB for instructions and the latest information.

Attach to Form 1040 or 1040-SR.

OMB No. 1545-0074

2019 Attachment Sequence No. 08

Name(s) shown on return Your social security number

Part I

Interest (See instructions and the instructions for Forms 1040 and 1040-SR, line 2b.) Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm’s name as the payer and enter the total interest shown on that form.

1

List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see the instructions and list this interest first. Also, show that buyer’s social security number and address

1

Amount

2 Add the amounts on line 1 . . . . . . . . . . . . . . . . . . . 2 3

Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 . . . . . . . . . . . . . . . . . . . . . . 3

4

Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b . . . . . . . . . . . . . . . . . . . . . . . . 4

Note: If line 4 is over $1,500, you must complete Part III. Amount

Part II

Ordinary Dividends (See instructions and the instructions for Forms 1040 and 1040-SR, line 3b.) Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm’s name as the payer and enter the ordinary dividends shown on that form.

5 List name of payer

5

6

Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3b . . . . . . . . . . . . . . . . . . . . . . . . 6

Note: If line 6 is over $1,500, you must complete Part III.

Part III

Foreign Accounts and Trusts Caution: If required, failure to file FinCEN Form 114 may result in substantial penalties. See instructions.

You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No

7

a

At any time during 2019, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions . . . . . . . . . . . . . . . . . . . . . . . .

If “Yes,” are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its instructions for filing requirements and exceptions to those requirements . . . . . .

b

If you are required to file FinCEN Form 114, enter the name of the foreign country where the financial account is located

8

During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If “Yes,” you may have to file Form 3520. See instructions . . . . . . . . .

For Paperwork Reduction Act Notice, see your tax return instructions. Schedule B (Form 1040 or 1040-SR) 2019

THOMAS & RITA SMITH 037-40-1234

2,100.

2,100.

2,500.

SANTANDER BANK 2,100.

VANGUARD FUNDS 2,500.

BAA REV 05/19/20 PRO

SCHEDULE C (Form 1040 or 1040-SR)

Department of the Treasury Internal Revenue Service (99)

Profit or Loss From Business (Sole Proprietorship)

Go to www.irs.gov/ScheduleC for instructions and the latest information. Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally must file Form 1065.

OMB No. 1545-0074

2019 Attachment Sequence No. 09

Name of proprietor Social security number (SSN)

A Principal business or profession, including product or service (see instructions) B Enter code from instructions

C Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.)

E Business address (including suite or room no.)

City, town or post office, state, and ZIP code

F Accounting method: (1) Cash (2) Accrual (3) Other (specify)

G Did you “materially participate” in the operation of this business during 2019? If “No,” see instructions for limit on losses . Yes No

H If you started or acquired this business during 2019, check here . . . . . . . . . . . . . . . . .

I Did you make any payments in 2019 that would require you to file Form(s) 1099? (see instructions) . . . . . . . . Yes No

J If “Yes,” did you or will you file required Forms 1099? . . . . . . . . . . . . . . . . . . . . . Yes No

Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on

Form W-2 and the “Statutory employee” box on that form was checked . . . . . . . . . 1

2 Returns and allowances . . . . . . . . . . . . . . . . . . . . . . . . . 2

3 Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Cost of goods sold (from line 42) . . . . . . . . . . . . . . . . . . . . . . 4

5 Gross profit. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . 5

6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) . . . . 6

7 Gross income. Add lines 5 and 6 . . . . . . . . . . . . . . . . . . . . . 7 Part II Expenses. Enter expenses for business use of your home only on line 30.

8 Advertising . . . . . 8

9

Car and truck expenses (see instructions) . . . . . 9

10 Commissions and fees . 10

11 Contract labor (see instructions) 11

12 Depletion . . . . . 12 13

Depreciation and section 179 expense deduction (not included in Part III) (see instructions) . . . . . 13

14

Employee benefit programs (other than on line 19) . . 14

15 Insurance (other than health) 15

16 Interest (see instructions):

a Mortgage (paid to banks, etc.) 16a

b Other . . . . . . 16b 17 Legal and professional services 17

18 Office expense (see instructions) 18

19 Pension and profit-sharing plans . 19

20 Rent or lease (see instructions):

a Vehicles, machinery, and equipment 20a

b Other business property . . . 20b

21 Repairs and maintenance . . . 21

22 Supplies (not included in Part III) . 22

23 Taxes and licenses . . . . . 23

24 Travel and meals:

a Travel . . . . . . . . . 24a

b

Deductible meals (see instructions) . . . . . . . 24b

25 Utilities . . . . . . . . 25

26 Wages (less employment credits) . 26

27 a Other expenses (from line 48) . . 27a

b Reserved for future use . . . 27b

28 Total expenses before expenses for business use of home. Add lines 8 through 27a . . . . . . 28

29 Tentative profit or (loss). Subtract line 28 from line 7 . . . . . . . . . . . . . . . . . 29

30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home:

and (b) the part of your home used for business: . Use the Simplified

Method Worksheet in the instructions to figure the amount to enter on line 30 . . . . . . . . . 30

31 Net profit or (loss). Subtract line 30 from line 29.

• If a profit, enter on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3.

• If a loss, you must go to line 32. } 31

32 If you have a loss, check the box that describes your investment in this activity (see instructions).

• If you checked 32a, enter the loss on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates and trusts, enter on Form 1041, line 3. • If you checked 32b, you must attach Form 6198. Your loss may be limited.

} 32a All investment is at risk. 32b Some investment is not at risk.

For Paperwork Reduction Act Notice, see the separate instructions. Schedule C (Form 1040 or 1040-SR) 2019

CONSULTANT

RITA SMITH 698-44-4444

121 COOKE STREET EAST PROVIDENCE, RI 02914

24,000.

24,000.

24,000.

12,800.

11,300.

5 4 1 9 9 0

750.

11,200.

4,800.

1,600.

1,200.

1,000.

600.

1500 300

1,500.

1,250.1,250.

24,000.

BAA REV 05/19/20 PRO

Schedule C (Form 1040 or 1040-SR) 2019 Page 2 Part III Cost of Goods Sold (see instructions)

33

Method(s) used to value closing inventory: a Cost b Lower of cost or market c Other (attach explanation)

34

Was there any change in determining quantities, costs, or valuations between opening and closing inventory? If “Yes,” attach explanation . . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

35 Inventory at beginning of year. If different from last year’s closing inventory, attach explanation . . . 35

36 Purchases less cost of items withdrawn for personal use . . . . . . . . . . . . . . 36

37 Cost of labor. Do not include any amounts paid to yourself . . . . . . . . . . . . . . 37

38 Materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . 38

39 Other costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

40 Add lines 35 through 39 . . . . . . . . . . . . . . . . . . . . . . . . 40

41 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . 41

42 Cost of goods sold. Subtract line 41 from line 40. Enter the result here and on line 4 . . . . . . 42 Part IV Information on Your Vehicle. Complete this part only if you are claiming car or truck expenses on line 9

and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562.

43 When did you place your vehicle in service for business purposes? (month, day, year)

44 Of the total number of miles you drove your vehicle during 2019, enter the number of miles you used your vehicle for:

a Business b Commuting (see instructions) c Other

45 Was your vehicle available for personal use during off-duty hours? . . . . . . . . . . . . . . . Yes No

46 Do you (or your spouse) have another vehicle available for personal use?. . . . . . . . . . . . . . Yes No

47a Do you have evidence to support your deduction? . . . . . . . . . . . . . . . . . . . . Yes No

b If “Yes,” is the evidence written? . . . . . . . . . . . . . . . . . . . . . . . . . Yes No

Part V Other Expenses. List below business expenses not included on lines 8–26 or line 30.

48 Total other expenses. Enter here and on line 27a . . . . . . . . . . . . . . . . 48

Schedule C (Form 1040 or 1040-SR) 2019

1,250.1,250.

TELEPHONE 750.

INTERNET 500.

REV 05/19/20 PRO

SCHEDULE SE (Form 1040 or 1040-SR)

Department of the Treasury Internal Revenue Service (99)

Self-Employment Tax

Go to www.irs.gov/ScheduleSE for instructions and the latest information. Attach to Form 1040, 1040-SR, or 1040-NR.

OMB No. 1545-0074

2019 Attachment Sequence No. 17

Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040-NR) Social security number of person with self-employment income

Before you begin: To determine if you must file Schedule SE, see the instructions.

May I Use Short Schedule SE or Must I Use Long Schedule SE?

Note: Use this flowchart only if you must file Schedule SE. If unsure, see Who Must File Schedule SE in the instructions.

No

Did you receive wages or tips in 2019?

Yes

Are you a minister, member of a religious order, or Christian Science practitioner who received IRS approval not to be taxed on earnings from these sources, but you owe self-employment tax on other earnings?

Yes

No

Are you using one of the optional methods to figure your net earnings (see instructions)?

Yes

No

Did you receive church employee income (see instructions) reported on Form W-2 of $108.28 or more?

Yes

No

You may use Short Schedule SE below

Was the total of your wages and tips subject to social security or railroad retirement (tier 1) tax plus your net earnings from self-employment more than $132,900?

Yes

No

Did you receive tips subject to social security or Medicare tax that you didn't report to your employer?

Yes

No

No Did you report any wages on Form 8919, Uncollected Social Security and Medicare Tax on Wages?

Yes

You must use Long Schedule SE on page 2

Section A—Short Schedule SE. Caution: Read above to see if you can use Short Schedule SE.

1 a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1a

b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b ( )

2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). Ministers and members of religious orders, see instructions for types of income to report on this line. See instructions for other income to report . . . . . . . . . . . . . 2

3 Combine lines 1a, 1b, and 2 . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Multiply line 3 by 92.35% (0.9235). If less than $400, you don't owe self-employment tax; don't file

this schedule unless you have an amount on line 1b . . . . . . . . . . . . . . . . 4 Note: If line 4 is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions.

5 Self-employment tax. If the amount on line 4 is: • $132,900 or less, multiply line 4 by 15.3% (0.153). Enter the result here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 55. • More than $132,900, multiply line 4 by 2.9% (0.029). Then, add $16,479.60 to the result. Enter the total here and on Schedule 2 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 55 . 5

6 Deduction for one-half of self-employment tax. Multiply line 5 by 50% (0.50). Enter the result here and on Schedule 1 (Form 1040 or 1040-SR), line 14, or Form 1040-NR, line 27 . . . . . . . . 6

For Paperwork Reduction Act Notice, see your tax return instructions. Schedule SE (Form 1040 or 1040-SR) 2019

RITA SMITH 698-44-4444

799.

10,436.

1,597.

11,300. 11,300.

BAA REV 05/19/20 PRO

  • 2019 Federal Tax Return
    • Form 1040: Individual Tax Return
    • Schedule 1: Additional Income and Adjustments to Income
    • Schedule 2: Additional Taxes
    • Schedule 3: Nonrefundable Credits
    • Schedule B: Interest and Dividend Income
    • Schedule C (CONSULTANT): Profit or Loss from Business
    • Schedule SE: Self-Employment Tax (Spouse)

Attachment 2

FORM 1040 TAX YEAR 2019 DATA

THEIR ADDRESS IS 121 COOKE STREET EAST PROVIDENCE, RI 02914.

THOMAS 037-40-1234 PETER 356-87-7411

RITA 698-44-4444 ADDISON 585-41-1189

OTHER INFORMATION:

INCOME:

THOMAS'S SALARY:

TAXABLE WAGES 116,000 GROSS INCOME

FEDERAL INCOME TAX WITHHELD 11,200 TAX PAYMENT

STATE INCOME TAX WITHHELD 3,500 ITEMIZED DEDUCTION

INTEREST INCOME FROM SANTANDER BANK. 2,100 GROSS INCOME

INTEREST INCOME FROM MUNICIPAL BONDS. 3,500 NOT TAXABLE

2,500 GROSS INCOME

10,000 NOT TAXABLE

RITA MADE FOUR QUARTERLY ESTIMATED TAX PAYMENTS OF $300. 1,200 TAX PAYMENT

24,000 GROSS INCOME - REVENUE

DEDUCTIONS:

THESE ARE RITA'S BUSINESS EXPENSES FROM HER CONSULTING BUSINESS:

BUSINESS MEALS EXPENSE 2,000 GROSS INCOME - EXPENSE

OFFICE EXPENSE 600 GROSS INCOME - EXPENSE

TELEPHONE 750 GROSS INCOME - EXPENSE

EQUIPMENT RENTAL 1,200 GROSS INCOME - EXPENSE

INTERNET 500 GROSS INCOME - EXPENSE

ADVERTISING 750 GROSS INCOME - EXPENSE

TRAVEL 1,600 GROSS INCOME - EXPENSE

RENT 4,800 GROSS INCOME - EXPENSE

HOME OFFICE DEDUCTION (SIMPLIFIED METHOD, 300 SQ. FT.) 1,500 GROSS INCOME - EXPENSE

ITEMIZED DEDUCTIONS:

REAL ESTATE TAXES 8,100 ITEMIZED DEDUCTION

AUTOMOBILE TAXES 800 ITEMIZED DEDUCTION

HOME MORTGAGE INTEREST ON $350,000 MORTGAGE 8,300 ITEMIZED DEDUCTION

CASH CHARITABLE CONTRIBUTIONS 700 ITEMIZED DEDUCTION

OUT-OF-POCKET MEDICAL EXPENSES PAID 5,000 ITEMIZED DEDUCTION

RITA CONTRIBUTED TO A TRADITIONAL IRA. 3,000 DEDUCTION BEFORE AGI

RITA IS SELF-EMPLOYED AS A CONSULTANT. SHE USES THE CASH BASIS. THIS IS HER

GROSS RECEIPTS TOTAL.

QUALIFIED DIVIDEND INCOME FROM VANGUARD FUNDS.

RITA RECEIVED A GIFT FROM HER UNCLE FOR HER 40TH BIRTHDAY.

THOMAS AND RITA SMITH ARE MARRIED. THEY ALWAYS FILE A JOINT TAX RETURN.

THEY HAVE TWO CHILDREN. THEIR SON, PETER, IS FOUR YEARS OLD AND THEIR

DAUGHTER, ADDISON, IS 12 YEARS OLD. THOMAS IS 38 AND RITA IS 40. THOMAS IS

A SALESMAN AND RITA IS A CONSULTANT.

THE TWO CHILDREN

QUALIFY FOR THE CHILD

TAX CREDIT.

SOLUTION:

GROSS INCOME

SALARY 116,000

INTEREST INCOME 2,100

DIVIDEND INCOME 2,500

SELF-EMPLOYMENT INCOME 11,300

TOTAL INCOME 131,900

DEDUCTIONS BEFORE AGI

50% SELF-EMPLOYMENT TAX 799

IRA CONTRIBUTION 3,000

(3,799)

ADJUSTED GROSS INCOME (AGI) 128,101

ITEMIZED DEDUCTIONS

MEDICAL 5,000 LIMITED -

TAXES (STATE TAX, REAL ESTATE TAX, CAR TAX) 12,400 LIMITED 10,000

MORTGAGE INTEREST 8,300 8,300

DONATIONS 700 700

TOTAL ITEMIZED DEDUCTIONS 19,000

STANDARD DEDUCTION OR ITEMIZED DEDUCTIONS (HIGHER) (24,400)

QUALIFIED BUSINESS INCOME DEDUCTION [(11,300 SCHEDULE C-799 SE TAX DEDUCTION) X 20%] (2,100)

TAXABLE INCOME 101,601

INCOME TAX CALCULATION

DIVIDEND INCOME (TAX RATE BASED ON TAXABLE INCOME) 2,500 15% 375

FIRST TWO TAX BRACKETS 78,950 10% AND 12% 9,086

MARGINAL TAX BRACKET 20,151 22% 4,433

101,601

GROSS INCOME TAX LIABILITY 13,894

CHILD TAX CREDIT (4,000)

OTHER TAXES (SELF-EMPLOYMENT TAX) 11,300 92.35% 15.3% 1,597

TAX PAYMENTS:

FEDERAL INCOME TAX WITHHELD 11,200

ESTIMATED TAX PAYMENTS 1,200

(12,400)

TAX DUE (REFUND) (909)

Attachment 3

FORM 1040 DATA TAX YEAR 2019

THEIR ADDRESS IS 121 COOKE STREET EAST PROVIDENCE, RI 02914.

ALEX 037-40-3333 PIETRO 358-74-1111

RITA 123-58-9744 DONATELLA 037-41-6112

INCOME

ALEX'S SALARY:

TAXABLE WAGES 126,000 FEDERAL INCOME TAX WITHHELD 14,500 STATE INCOME TAX WITHHELD 4,500

INTEREST INCOME FROM SANTANDER BANK. 1,200

INTEREST FROM U.S. SAVINGS BONDS. 3,500

INTEREST INCOME FROM MUNICIPAL BONDS. 4,500

2,000

LONG-TERM CAPITAL GAIN INCOME. 5,000

50,000

RITA MADE FOUR QUARTERLY ESTIMATED TAX PAYMENTS OF $1,250. 5,000

200

22,000

DEDUCTIONS

THESE ARE RITA'S BUSINESS EXPENSES FROM HER CONSULTING BUSINESS:

OFFICE EXPENSE 600 TELEPHONE 800 EQUIPMENT RENTAL 1,200 INTERNET 500 ADVERTISING 600 TRAVEL 1,800

DIVIDEND INCOME FROM VANGUARD FUNDS. THEY ARE QUALIFIED DIVIDENDS.

ALEX AND RITA SANTANDER ARE MARRIED. THEY ALWAYS FILE A JOINT TAX RETURN. THEY HAVE TWO DEPENDENT CHILDREN. DONATELLA IS 21 YEARS OLD AND IS A FULL-TIME STUDENT IN COLLEGE. PIETRO IS FOUR YEARS OLD. ALEX IS 45 AND RITA IS 40. ALEX IS A SALESMAN AND RITA IS A CONSULTANT.

PROCEEDS FROM LIFE INSURANCE DUE TO UNCLE'S DEATH.

FOREIGN TAXES PAID ON MUTUAL FUNDS. THE SANTANDERS ALWAYS TAKE THEM AS A TAX CREDIT.

RITA IS SELF-EMPLOYED AS A CONSULTANT. SHE USES THE CASH BASIS. GROSS RECEIPTS TOTAL.

RITA USES PART OF THEIR HOUSE AS A HOME OFFICE. THE TOTAL SQUARE FOOTAGE IS 2,500 AND THE BUSINESS SQUARE FOOTAGE IS 200. SHE USES THE SIMPLIFIED METHOD,

4,800

ITEMIZED DEDUCTIONS:

REAL ESTATE TAXES 8,500 AUTOMOBILE TAXES 600 HOME MORTGAGE INTEREST ON $350,000 MORTGAGE 7,500 CASH CHARITABLE CONTRIBUTIONS 1,000 OUT-OF-POCKET MEDICAL EXPENSES PAID 6,000

RITA CONTRIBUTED TO A TRADITIONAL IRA. 3,000

THE SANTANDERS WANT THEIR TAX REFUND, IF ANY, TO BE DEPOSITED DIRECTLY INTO THEIR CHECKING ACCOUNT. THE ROUTING NUMBER IS 011500120 AND THE ACCOUNT NUMBER IS 123456789.

RITA PAYS ALIMONY TO HER EX-SPOUSE. HIS NAME IS WALTER RICHARDS AND HIS SOCIAL SECURITY NUMBER IS 157-88-8888. THE DIVORCE DECREE IS FROM OCTOBER 15, 2016.

WHICH IS $5 PER SQUARE FOOT.