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Comprehensive Problem 5-2B

John Fuji (birthdate June 6, 1981) received the following Form W-2 from his employer related to his job as a manager at a Washington apple-processing plant are reported on his W-2 form (see separate tab).

John's other income includes interest on a Certificate of Deposit reported on a Form 1099-INT (see separate tab).

Also, in accordance with the January 2016 divorce decree he paid $500 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075) in 2020.

John received a Form 1098 that reports his mortgage interest and property taxes (see separate tab).

John tried his hand at day trading for one week in February 2020. He received a substitute Form 1099-B from his broker. Because the IRS was provided the acquisition date and basis for all trades and none required any adjustments or codes, these can be entered as a summary entry into Schedule D and no Form 8949 needs to be prepared.

During 2020, John paid the following amounts (all of which can be substantiated):

Auto loan interest 1,575 Credit card interest 655 State sales tax (actual exceeds estimated) 1,780 Doctor bills 4,000 Other deductible medical expenses 1,800 Income tax preparation fee 500 Job-hunting expenses 925 Cash charitable donation to the Jonagold Research Center 400

John's employer offers a retirement plan, but John does not participate. Instead, he made a $4,000 contribution to a Roth IRA.

John received a $1,200 EIP in 2020.

Required: Complete John's Form 1040 and Schedule 1, Schedule A, and Schedule D.

• Make realistic assumptions about any missing data.
• John has health coverage for the entire year and he does not want to make a contribution to the presidential election campaign.
• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• If required round any dollar amount to the nearest dollar.

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