70.2K

Verified Solution

Link Copied!

I still dont get how can question 12a is $3641 instead of $3679. I know that i have to take the dividend tax rate from the taxable income,however the taxable income from box 11 is not over $78k, if it is over $78k the tax rate for dividends will be 0%. Please explain to me how can box 12a be $3641. Here it is the wrong and the right question that course mark me wrong.

John and Martha Holloway are married filing jointly. They are 35 and 31 years old, respectively. Their address is 10010 Dove Street, Atlanta, GA 30294. Additional information about Mr. and Mrs. Holloway is as follows: Social security numbers: John: 412-34-5670 Date of birth: 3/4/1984 W-2 for John shows these amounts: Wages (box 1) = $22,000.00 Federal W/H (box 2) = $ 1,500.00 Social security wages (box 3) = $22,000.00 Social security W/H (box 4) = $ 1,364.00 Medicare wages (box 5) = $22,000.00 Medicare W/H (box 6) = $ 319.00 Martha: 412-34-5671 Date of birth: 8/20/1988 W-2 for Martha shows these amounts: Wages (box 1) = $35,500.00 Federal W/H (box 2) = $ 3,100.00 Social security wages (box 3) = $35,500.00 Social security W/H (box 4) = $ 2,201.00 Medicare wages (box 5) = $35,500.00 Medicare W/H (box 6) = $ 514.75 Form 1099-DIV for Martha shows this amount: Box 1a and box 1b = $345.00 from MAR Brokerage. Form 1099-INT for Martha shows these amounts: Box 1 = $450.00 from ABC Bank. Box 4 = $35.00. John is a maintenance worker, and Martha is a Human Resources Manager. Required: Prepare the tax return for Mr. and Mrs. Holloway. They want to contribute to the presidential election campaign. (List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers.) Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 - U.S. Individual Income Tax Return | 2019 OMB No. 1545-0074 IRS Use Only - Do not write in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widower) (QW) Check only 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 one box a child but not your dependent Your first name and middle initial Last name Your social security number (Enter as xx-xx- xx) John Holloway 412-34-5670 if joint return, spouse's first name and middle initial Last name Your social security number (Enter as xx-xx-000) Martha Holloway 412-34-5671 Home address (number and street). If you have a PO box, see instructions. Apt. no. Presidential Election Campaign 10010 Dove Street Check here if you, or your spouse if filing jointly. want $3 to go to this fund. Checking a box below City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). will not change your tax or refund. Atlanta, GA 30294 You Spouse Foreign country name Foreign province/state county Foreign postal code If more than four dependents, see instructions and here Someone Standard You as a dependent Your spouse as a dependent can claim: Deduction 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, 1065 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): Credit for other (1) First name Last name (Enter as 700-0- XX) Child tax credit dependents 1 Wages, salaries, tips, etc. Attach Formis) W-2 1 57,500 2a Tax-exempt interest 2a 2b 450 3a Qualified dividends 3a 345 b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required b Taxable amount 3b 345 4a IRA distributions 4a 4b c Pensions and annuities 40 d Taxable amount 4d b Taxable amount 5b 5a Social security benefits 5a 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here 6 Standard Deduction for - Single or Married filing separately. $12.200 Married filing jointly or Qualifying widower) $24.400 Head of household $18,350 . If you checked any box under Standard Deduction 7a Other income from Schedule 1, line 9 7a b Add lines 1, 26, 35, 46, 4d, 56, 8, and 7a. This is your total income 7b 58,295 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 58,295 9 24.400 See 10 instructions 9 Standard deduction or itemized deductions (from Schedule A) 10 Qualified business income deduction. Attach Form 8995 or Form 3995-A 11a Add lines 9 and 10 b Taxable income. Subtract line 11a from line 8b 11a 24,400 33,895 11b For Disclosure. Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No 113208 Form 1040 (2019) 1040 PG 1 1040 PG 2 Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2019) Page 2 412-34-5670 3,879 12b 3,679 0 13b 0 14 3,679 15 16 3,679 4,635 17 - If you have a qualifying child attach Sch. EIC . If you have nontaxable combat pay. See instructions John Holloway Martha Holloway 12a Tax (see inst.) Check if any from Form(s): (1) 8814 (2) 4072 (3) 12a Add Schedule 2. line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents 13a b Add Schedule 3. line 7, and line 132 and enter the total 14 Subtract line 136 from line 12b If zero or less, enter -O- 15 Other taxes, including self-employment tax, from Schedule 2 line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC) 18a b Additional child tax credit. Attach Schedule 8812 18b C American opportunity credit from Form 8883, line 8 18c d Schedule 3, line 14 18d e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here Routing number -c Type Checking Savings >d Account number 22 Amount of line 20 you want applied to your 2020 estimated 22 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) 24 Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. 18e 0 19 4,635 20 956 Refund 21a Direct deposit? See instructions tax 23 Amount You Owe Third Party Designee Yes. Complete below. No (Other than paid preparer) Designee's name Phone no Personal identification number (PIN) Sign Here Under penalties of perjury, I declare that I have examined this retum 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 If the IRS sent you an identity Date Your occupation Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Identity Protection PIN, enter it here (see inst.) Joint return? See instructions. Keep a copy for your records. Email address Phone no Preparer's name Preparer's signature Date PTIN Paid Preparer Use Only Check if: 3rd Party Designee Self-employed Firm's name Phone no 1040 PG 1 1040 PG 2 Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2019) Dohn Page 2 412-34-5670 3,641 12b 3,641 13b 14 3.641 15 18 3,641 4.635 17 18a If you have a qualifying child attach Sch. EIC - If you have nontaxable combat pay, see instructions Lolloway artha Holloway 12a Tax (see inst.) Check if any from Form(s): (1) 8814 (2) 4072 (3) 12a b Add Schedule 2. Iine 3, and line 122 and enter the total 13a Child tax credit or credit for other dependents 13a b Add Schedule 3. line 7, and line 13a and enter the total 14 Subtract line 136 from line 12b. If zero or less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC) b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 3 d Schedule 3, line 14 18d e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 18. subtract line 18 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here > Routing number c Type: Checking Savings d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) 24 Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. 18c 18e 0 19 4,635 994 Refund 20 21a 994 Direct deposit? See instructions 23 Yes. Complete below. No Amount You Owe Third Party Designee (Other than paid preparer) Sign Here Personal identification Designee's name Phone . - number (PIN) Joint return? See instructions Keep a copy for your records. Under penalties of perjury, I declare that I have examined this retum 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 If the IRS sent you an identity Your signature Date Your occupation Protection PIN enter it here (see inst.) Spouse's signature. If a joint return, both must sign. If the IRS sent your spouse an Date Spouse's occupation Identity Protection PIN, enter it here (see inst.) Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if 3rd Party Designee Firm's name Phone no Self-employed Firm's address Firm's EIN Paid Preparer Use Only John and Martha Holloway are married filing jointly. They are 35 and 31 years old, respectively. Their address is 10010 Dove Street, Atlanta, GA 30294. Additional information about Mr. and Mrs. Holloway is as follows: Social security numbers: John: 412-34-5670 Date of birth: 3/4/1984 W-2 for John shows these amounts: Wages (box 1) = $22,000.00 Federal W/H (box 2) = $ 1,500.00 Social security wages (box 3) = $22,000.00 Social security W/H (box 4) = $ 1,364.00 Medicare wages (box 5) = $22,000.00 Medicare W/H (box 6) = $ 319.00 Martha: 412-34-5671 Date of birth: 8/20/1988 W-2 for Martha shows these amounts: Wages (box 1) = $35,500.00 Federal W/H (box 2) = $ 3,100.00 Social security wages (box 3) = $35,500.00 Social security W/H (box 4) = $ 2,201.00 Medicare wages (box 5) = $35,500.00 Medicare W/H (box 6) = $ 514.75 Form 1099-DIV for Martha shows this amount: Box 1a and box 1b = $345.00 from MAR Brokerage. Form 1099-INT for Martha shows these amounts: Box 1 = $450.00 from ABC Bank. Box 4 = $35.00. John is a maintenance worker, and Martha is a Human Resources Manager. Required: Prepare the tax return for Mr. and Mrs. Holloway. They want to contribute to the presidential election campaign. (List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers.) Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 - U.S. Individual Income Tax Return | 2019 OMB No. 1545-0074 IRS Use Only - Do not write in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widower) (QW) Check only 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 one box a child but not your dependent Your first name and middle initial Last name Your social security number (Enter as xx-xx- xx) John Holloway 412-34-5670 if joint return, spouse's first name and middle initial Last name Your social security number (Enter as xx-xx-000) Martha Holloway 412-34-5671 Home address (number and street). If you have a PO box, see instructions. Apt. no. Presidential Election Campaign 10010 Dove Street Check here if you, or your spouse if filing jointly. want $3 to go to this fund. Checking a box below City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). will not change your tax or refund. Atlanta, GA 30294 You Spouse Foreign country name Foreign province/state county Foreign postal code If more than four dependents, see instructions and here Someone Standard You as a dependent Your spouse as a dependent can claim: Deduction 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, 1065 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): Credit for other (1) First name Last name (Enter as 700-0- XX) Child tax credit dependents 1 Wages, salaries, tips, etc. Attach Formis) W-2 1 57,500 2a Tax-exempt interest 2a 2b 450 3a Qualified dividends 3a 345 b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required b Taxable amount 3b 345 4a IRA distributions 4a 4b c Pensions and annuities 40 d Taxable amount 4d b Taxable amount 5b 5a Social security benefits 5a 6 Capital gain or (loss). Attach Schedule D if required. If not required, check here 6 Standard Deduction for - Single or Married filing separately. $12.200 Married filing jointly or Qualifying widower) $24.400 Head of household $18,350 . If you checked any box under Standard Deduction 7a Other income from Schedule 1, line 9 7a b Add lines 1, 26, 35, 46, 4d, 56, 8, and 7a. This is your total income 7b 58,295 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 58,295 9 24.400 See 10 instructions 9 Standard deduction or itemized deductions (from Schedule A) 10 Qualified business income deduction. Attach Form 8995 or Form 3995-A 11a Add lines 9 and 10 b Taxable income. Subtract line 11a from line 8b 11a 24,400 33,895 11b For Disclosure. Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No 113208 Form 1040 (2019) 1040 PG 1 1040 PG 2 Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2019) Page 2 412-34-5670 3,879 12b 3,679 0 13b 0 14 3,679 15 16 3,679 4,635 17 - If you have a qualifying child attach Sch. EIC . If you have nontaxable combat pay. See instructions John Holloway Martha Holloway 12a Tax (see inst.) Check if any from Form(s): (1) 8814 (2) 4072 (3) 12a Add Schedule 2. line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents 13a b Add Schedule 3. line 7, and line 132 and enter the total 14 Subtract line 136 from line 12b If zero or less, enter -O- 15 Other taxes, including self-employment tax, from Schedule 2 line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC) 18a b Additional child tax credit. Attach Schedule 8812 18b C American opportunity credit from Form 8883, line 8 18c d Schedule 3, line 14 18d e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here Routing number -c Type Checking Savings >d Account number 22 Amount of line 20 you want applied to your 2020 estimated 22 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) 24 Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. 18e 0 19 4,635 20 956 Refund 21a Direct deposit? See instructions tax 23 Amount You Owe Third Party Designee Yes. Complete below. No (Other than paid preparer) Designee's name Phone no Personal identification number (PIN) Sign Here Under penalties of perjury, I declare that I have examined this retum 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 If the IRS sent you an identity Date Your occupation Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Identity Protection PIN, enter it here (see inst.) Joint return? See instructions. Keep a copy for your records. Email address Phone no Preparer's name Preparer's signature Date PTIN Paid Preparer Use Only Check if: 3rd Party Designee Self-employed Firm's name Phone no 1040 PG 1 1040 PG 2 Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2019) Dohn Page 2 412-34-5670 3,641 12b 3,641 13b 14 3.641 15 18 3,641 4.635 17 18a If you have a qualifying child attach Sch. EIC - If you have nontaxable combat pay, see instructions Lolloway artha Holloway 12a Tax (see inst.) Check if any from Form(s): (1) 8814 (2) 4072 (3) 12a b Add Schedule 2. Iine 3, and line 122 and enter the total 13a Child tax credit or credit for other dependents 13a b Add Schedule 3. line 7, and line 13a and enter the total 14 Subtract line 136 from line 12b. If zero or less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2, line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC) b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 3 d Schedule 3, line 14 18d e Add lines 18a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 18. subtract line 18 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here > Routing number c Type: Checking Savings d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) 24 Do you want to allow another person (other than your paid preparer) to discuss this return with the IRS? See instructions. 18c 18e 0 19 4,635 994 Refund 20 21a 994 Direct deposit? See instructions 23 Yes. Complete below. No Amount You Owe Third Party Designee (Other than paid preparer) Sign Here Personal identification Designee's name Phone . - number (PIN) Joint return? See instructions Keep a copy for your records. Under penalties of perjury, I declare that I have examined this retum 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 If the IRS sent you an identity Your signature Date Your occupation Protection PIN enter it here (see inst.) Spouse's signature. If a joint return, both must sign. If the IRS sent your spouse an Date Spouse's occupation Identity Protection PIN, enter it here (see inst.) Phone no. Email address Preparer's name Preparer's signature Date PTIN Check if 3rd Party Designee Firm's name Phone no Self-employed Firm's address Firm's EIN Paid Preparer Use Only

Answer & Explanation Solved by verified expert

See Answer