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federal tax assignment.

Tony K. Cena (SSN 123-44-8888) lives at 1010 Ipsen Street, Yorba Linda, California 90102. Tony, a single taxpayer, age 67. He lives with his dependent elderly mother whom he completely supports. Tony is a self-employed accountant who sees and consults his clients exclusively at his home office. Other relevant information includes:

• Earnings from his consulting business: $95,000

• Rents collected from properties Tony owns, including $1,000 rent deposit $22,000

• Interest income (treasury bonds) $500

• Interest income (municipal bonds) $450

• Life insurance payment to Tony $50,000

  (Tony was a beneficiary on his fathers life insurance policy and received a lump sum payment equal to the policy face value)

• Personal Deductible Expenses (Itemized Deductions) $16,300

• Tax Withholdings (prepayments) $7,000

Tony receives monthly $1,000 pension plan distributions from his former employers qualified pension plan; Tony contributed $84,000 to the plan. In addition, Tony was in a car accident and received the following settlement from an insurance company: $12,000 for the physical injury that he sustained, $3,000 for the relating emotional distress, and $4,000 in punitive damages.

Complete Individual Federal Income Tax Return (Form 1040) for the year ending December 31, 2020. Alternatively, you can show your work by inputting relevant information into the Tax Formula studied in class. You may use the Internal Revenue web-site (www.irs.gov) or any other internet source to download any forms you will need (but you will not be penalized for not using the forms). Do not worry about tax rates/ tax credits as we did not discuss them comprehensively in class. (SHOW ALL YOUR WORK)

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