Alton Newman, age 67, is married and files a joint return with his wife, Clair, age 65. Aiton and Clair are both retired, and during 2020 , they received Social Security benefits of $10,000. Both Alton and Clair are covered by Medicare. Alton's Social Security number is 11111 1119, and Clair's is 123-45-6786. They reside at 210 College Drive, Columbia, SC 29201. The Newman's received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Alton, who retired on January 1, 2020, recelves benefits from a qualified pension plan of $2,750 a month for life. His total contributions to the plan (none of which were deductible) were $168,250. In January 2020 , he received a bonus of $2,000 from his former employer for service performed in 2019. No Federal or state income taxes were withheld on this bonus by his former employer (Amalgamated Industries, Inc.; EIN 12-3456789; 114 Main Street, Columbia, SC 29201). Although Amalgamated Industries, Inc, accrued the bonus in 2019, it was not paid until 2020. Clair, who retired on December 31,2019 , started receiving benefits of $1,400 a month on January 1,2020 . Her contributions to the qualifled pension plan (none of which were deductible when made) were $74,100. On September 27, 2020, Alton and Clair recelved a pro rata 10% stock dividend on 600 shares of stock they owned. They had bought the stock on March 5, 2013, for $20 a share. On December 16, 2020, they sold the 60 dividend shares for $55 a share. On October 10,2020 , Clair sold the car she had used in commuting to and from work for $17,000. She had paid $31,000 for the car in 2014. On July 14, 2012, Aiton and Clair received a gift of 1,000 shares of stock from their son, Thomas. Thomas's basis in the stock was $35 a share (fair market value at the date of gitt was \$25). No gift tax was paid on the transfer. Alton and Clair sold the stock on October 8,2020 , for $24 a share. On May 1, 2020, Clair's mother died, and Clair inhented her personal residence. In February 2020, her mother had paid the property taxes for 2020 of $2,100. The residence had a fair market value of $235,000 and an adjusted basis to the mother of $160,000 on the date of her death. Claic listed the house with a real estate aoent. who estimated it was worth 3240,000 as of December 31.2020. Clair recelved rent income of $6,000 on a beach house she inherited three years ago from her uncle Charles. She had rented the property for one week during the July 4 holiday and one week during the Thanksgiving holiday. Charles's adjusted basis in the beach house was $150,000, and its fair market value on the date of his death was $240,000. Clair and Alton used the beach house for personal purposes for 56 days during the year. Expenses associated with the house were $3,700 for utilities, maintenance, and repairs; $2,200 for property taxes; and $800 for insurance. There are na mortgages on the property. Clair and Aiton paid estimated Federal income tax of $2,000 and had itemized deductions of $6,800 (excluding any itemized deductions associated with the beach house). They did not engage in any virtual currency transactions during the year. If they have overpaid their Federal income tax, they want the amount refunded. Both Clair and Alton want $3 to go to the Presidential Election Campaign Fund. Compute their 2020 Federal income tax payable of refund due and complete their 2020 tax return using appropriate forms and schedules. You are required to complete the Qualified Dividends and Capital Gain Tax Worksheet. The form is provided to assist you in computing the tax. - Make realistic assumptions about any missing data. - If an amount box does not require an entry or the answer is zero, enter "0". - Enter all amounts as positive numbers, unless otherwise instructed. - It may be necessary to complete the tax schedules before completing form 1040-5R. - When computing the tax liability, do not round your immediate calcijlations. If required round your final answers to the nearest dollar. - Use the 2020 Tax Rate Schedule provided. Do not use the Tax Tables. Complete page 2 of Form 8949 for 2020 . If required, use the minus sign to indicate a loss. Before you check Box D, E, or F below, see whether you recelved any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even teill you which box to checki Part If Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term (see instructions). For shortterm transactions, see page 1 . Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for Which no adjustments or codes are required. Enter the totals directly on Schedule D, line Ba; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (D) Long-term transactions reported on Form(5) 1099-B showing basis was reported to the IRS (see Note above) (E) Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRs (F) Long-term transactions not reported to you on Form 1099B \begin{tabular}{c|c|c|c|c|c} \hline 1 (a) & (b) & (c) & (d) & (e) & Adjustment, if any, to gain or \\ Description of property & Date acquired & Date sold or & Proceeds (sales & Cost or other & loss. If you enter an amount in \\ Gain or (loss). \end{tabular} Alton Newman, age 67, is married and files a joint return with his wife, Clair, age 65. Aiton and Clair are both retired, and during 2020 , they received Social Security benefits of $10,000. Both Alton and Clair are covered by Medicare. Alton's Social Security number is 11111 1119, and Clair's is 123-45-6786. They reside at 210 College Drive, Columbia, SC 29201. The Newman's received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Alton, who retired on January 1, 2020, recelves benefits from a qualified pension plan of $2,750 a month for life. His total contributions to the plan (none of which were deductible) were $168,250. In January 2020 , he received a bonus of $2,000 from his former employer for service performed in 2019. No Federal or state income taxes were withheld on this bonus by his former employer (Amalgamated Industries, Inc.; EIN 12-3456789; 114 Main Street, Columbia, SC 29201). Although Amalgamated Industries, Inc, accrued the bonus in 2019, it was not paid until 2020. Clair, who retired on December 31,2019 , started receiving benefits of $1,400 a month on January 1,2020 . Her contributions to the qualifled pension plan (none of which were deductible when made) were $74,100. On September 27, 2020, Alton and Clair recelved a pro rata 10% stock dividend on 600 shares of stock they owned. They had bought the stock on March 5, 2013, for $20 a share. On December 16, 2020, they sold the 60 dividend shares for $55 a share. On October 10,2020 , Clair sold the car she had used in commuting to and from work for $17,000. She had paid $31,000 for the car in 2014. On July 14, 2012, Aiton and Clair received a gift of 1,000 shares of stock from their son, Thomas. Thomas's basis in the stock was $35 a share (fair market value at the date of gitt was \$25). No gift tax was paid on the transfer. Alton and Clair sold the stock on October 8,2020 , for $24 a share. On May 1, 2020, Clair's mother died, and Clair inhented her personal residence. In February 2020, her mother had paid the property taxes for 2020 of $2,100. The residence had a fair market value of $235,000 and an adjusted basis to the mother of $160,000 on the date of her death. Claic listed the house with a real estate aoent. who estimated it was worth 3240,000 as of December 31.2020. Clair recelved rent income of $6,000 on a beach house she inherited three years ago from her uncle Charles. She had rented the property for one week during the July 4 holiday and one week during the Thanksgiving holiday. Charles's adjusted basis in the beach house was $150,000, and its fair market value on the date of his death was $240,000. Clair and Alton used the beach house for personal purposes for 56 days during the year. Expenses associated with the house were $3,700 for utilities, maintenance, and repairs; $2,200 for property taxes; and $800 for insurance. There are na mortgages on the property. Clair and Aiton paid estimated Federal income tax of $2,000 and had itemized deductions of $6,800 (excluding any itemized deductions associated with the beach house). They did not engage in any virtual currency transactions during the year. If they have overpaid their Federal income tax, they want the amount refunded. Both Clair and Alton want $3 to go to the Presidential Election Campaign Fund. Compute their 2020 Federal income tax payable of refund due and complete their 2020 tax return using appropriate forms and schedules. You are required to complete the Qualified Dividends and Capital Gain Tax Worksheet. The form is provided to assist you in computing the tax. - Make realistic assumptions about any missing data. - If an amount box does not require an entry or the answer is zero, enter "0". - Enter all amounts as positive numbers, unless otherwise instructed. - It may be necessary to complete the tax schedules before completing form 1040-5R. - When computing the tax liability, do not round your immediate calcijlations. If required round your final answers to the nearest dollar. - Use the 2020 Tax Rate Schedule provided. Do not use the Tax Tables. Complete page 2 of Form 8949 for 2020 . If required, use the minus sign to indicate a loss. Before you check Box D, E, or F below, see whether you recelved any Form(s) 1099-B or substitute statement(s) from your broker. A substitute statement will have the same information as Form 1099-B. Either will show whether your basis (usually your cost) was reported to the IRS by your broker and may even teill you which box to checki Part If Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term (see instructions). For shortterm transactions, see page 1 . Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for Which no adjustments or codes are required. Enter the totals directly on Schedule D, line Ba; you aren't required to report these transactions on Form 8949 (see instructions). You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more long-term transactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (D) Long-term transactions reported on Form(5) 1099-B showing basis was reported to the IRS (see Note above) (E) Long-term transactions reported on Form(s) 1099-B showing basis wasn't reported to the IRs (F) Long-term transactions not reported to you on Form 1099B \begin{tabular}{c|c|c|c|c|c} \hline 1 (a) & (b) & (c) & (d) & (e) & Adjustment, if any, to gain or \\ Description of property & Date acquired & Date sold or & Proceeds (sales & Cost or other & loss. If you enter an amount in \\ Gain or (loss). \end{tabular}