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Tax Return Assignment #2 Assignment due: Friday, April 16, 2021, 11:59PM Prepare the 2020 1040 for the information listed below. John and Abigail Adams are both 40 years old. John is an executive and Abigail is a seamstress. They live at 1250 Hancock Street, Quincy, MA 02169. They file their tax return together as married filing jointly. 1. John earned $90,250 and had federal taxes withheld of $13,000 2. John received $35,000 of which $25,000 is taxable from an annuity account 3. Abigail operates her own Schedule C business, Abby's Colonial Creations. Below is a copy of her profit and loss statement. 4. They itemize their deductions on Schedule A as follows: a. Real estate taxes - 15,000 b. Mortgage interest - 16,500 c Charitable contributions - 3,250 5. They had health insurance for all of 2020. You will use the following 2020 forms: 1. Form 1040 2. Schedule 1 3. Schedule 2 4 Schedule A 5. Schedule 6. Schedule SE - (Part I only) Abby's Colonial Creations Hint for calculating QB1 deduction - Form 1040, line 13 Profit & Loss Tentative Sch C profit XXX Less: deduction for We self employment tax Gross receipts 21,000 Allowable Sch profit XOX Cost of Goods sold 15,000 Multiply by 203 Advertising 500 Insurance 700 Equals el deduction Office expense 400 finput on Form 1000, line 13) Rent (Line 205) 1.850 Repairs 250 com 017090398515847307XBIN Indonelo DODEX Bhole Sanat 1 / 2 90% + O 1040 2020 Detyrave U.S. Individual thcome Tax Return OMB No 1545-0074 ROD Filing Status Single Married fing jointly Married Wing separately MFS) Head of household HOHO Qualifying widowerow Check only you checked the MFS box, enter the name of your spouse. If you checked the HOH or OW box, enter the child's name if the qualifying one box person is a child but not your dependent Your time and in La Your social security number in 'n mens Late Spouse's so cutyumber more Home Member and you a PO bottom Apt.no Presidential Election Campaign Check here if you, or your spouse Iting jointly, want Clorofice you have a foreign com cabelo to go to this fund. Checking a box below will not change Foreign For our Foreign postal code your tax or rand You At any time during 2020, did you receive all send exchange, or otherwise acquire any financial interest in any virtual currency! Elves No Standard Someone can you as dependent Your spouse as a dependent Deduction pour son a separate rotum or you were a dus status in Age/Blindness You Were bom belone Jy2.1990 Are blind Spouse Was bom before awary 2.1956 Is blind Dependents instruction pelo Viorel Letra to you Child Cito than to dependent structions and the here 1 Wote Attach For W-2 2a Txempt interest 2 Taxable interes Quddividende mand Ja 30 Ordinary dividende 4aIRA taxable amount Sa to Tablaount Geocal security benefits 60 b Tasabi mount 7 Capital Altach Schedule Did not red check 3 O come trom Schedule Add 12, b. 67. Then your total income 10 Amants to come Tom Schau 123 10 Chansons you and deduction Scions 10 Adhes 101 106 The your tasto income 100 Tore Than your adjusted gross incante 11 Bandara deduction Home deduction om schedule ta Quincome for Form 13 A 13 14 15 15 1040 - A - 111 90% HEDULE 1 OUR NO. 1545-0074 orm 1040) Additional Income and Adjustments to Income 2020 of the Attach to Form 1040,1040-5R, or 1040-NR. Ahmet and Service Go to www.in. powl Form1000 for instructions and the latest Information. Sage Na 01 amels) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 21 Part Additional Income 1 1 Taxable refunds, credits, or offsets of state and local income taxes. 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 3 Business income or (loss). Attach Schedule C 4 4 Other gains or losses). Attach Form 4797 5 5 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 6 6 Farm income or loss). Attach Schedule F 7 Unemployment compensation 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 9 Part II Adjustments to Income 10 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government 11 officials. Attach Form 2106 12 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 14 Deductible part of self-employment tax. Attach Schedule SE 15 15 Set-employed SEP, SIMPLE, and qualified plans 16 16 Self-employed health insurance deduction 17 17 Penalty on early withdrawal of savings 18a 18a Alimony paid b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 19 IRA deduction 20 20 Student loan interest deduction 21 21 Tuition and foes deduction. Attach Form 8917 22 Add lines 10 though 21. These are your adjustments to income. Enter here and 22 on Form 1040 1040-SA O 1040-NR 101 111 80% 2020 SCHEDULE A Itemized Deductions OM NO. 1545-0074 Form 1040) Go to www.in.gov/Schedule for instructions and the latest Information. Department of Attach to Farm 1040 or 1000-SR. Alicet how to if you are in a nequited disaster loss on Form4684, the natructions for ine 16 fegance 07 New hown. Form 1104- Your aalay Medical and Dental Expenses Taxes You Pald Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (be instructions 2 Ente amount from Form 1040 or 1040-SR, line 11 21 3 Multiply line 2 by 7.5% (0.075) 3 4 Subtracting from fine fino 3 is more than in Inter-O- 5 State and local to a State and local income taxes or general sales taxes. You may include alther income tax or general sales taxes on line 5, but not both you bect to include general sales taxes instead of income taxes, check this box 5a State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c dAdd lines Sa though 5c 5d Enter the smaller of line 5d or $10.000 ($5,000 married filing separately 50 6 Others List type and amount Interest You Paid 7 Add nese and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan to buy bulld of improve your home, se instructions and check this box a Home mortgage interest and points reported to you on Form 1095 See instructions imited Home more interes not reported to you on Form 1008 50 instructions if limited. I paid to the person trom whom you bought the home see instructions and show that person's name, identifying to and address Ba Bb e Points not reported to you on Form 1098 Sestructions for social Be d Mortgage Insurance premium intruction ed Add lines through id Be ement interest. Attach Form 4952 od Sunction 10 Add in and 10 11 Os by cash or check you made any of 1350 or more se Charity struction 11 12 Ohty cash or check you made any of 250 or more tructions. You must attach Fon for 3500 12 13 Carver from prior year 13 14 County and 15 andromeday declared other than reguld That LAN los Altach Form 4004 and enter the amount from 18 of that for the Other 15 on list type and more Deductions Total 10 17 SCHEDULEC Profit or Loss From Business OMEN 1545-00N (Form 1040 (Sole Proprietorship) 2020 Dette The Go to www.in.gov/Schedule for marions and the latest Information Word Service Attach to Form 1040 1040-SRL 1040-, or 1001partnere generally must file Fom 100 SeguN 09 Himel proprio Social secuumber Principal business or profession, Including product of Viestructions BE Biename It no separate business, love blank D Employw D NO D Yes Yes al Bursaadress code suite room.no) Cytown polieste, and 2P code Accounting method 10 Cash Accrual other poly Did you musterily participate in the operation of this business during 2007 se intructions for imiton losses H you started or moquired this business during 2020, check there Did you make any peyments in 2020 would require you to fie Form 10997 Ste instructions Eddie woord 10997 Part 1 Income 1 Gross receipts Seeintructions for line and check the box this name was reported to you on Form Wand Story employee box on that for we checked 1 2 Ratusand willows 3 Subtractin2trom line 1 3 4 Cost of goods from in 4 Gross profit. Sinetrom 5 Othernoon, including and states or ureditvefunden Gross income Add Sande Part Expenses. Enteropenses for business use of your home only on line 30. 18 Office opere 18 5 Ordrucken TO Persidangan 10 con 20 con 10 Commons 10 View and on Other property 200 Deption 21 ta Radman Den andra 22 Speed 23 Tanden Tr Trawl 14 Ded 15 store 24 2018- 36 Wood 27a Oro Retour 20 Com 22 30 2 75% + Page 2 Schedule Form 1046) 2010 Part III Cost of Goods Sold (see instructions 38 Methods used to Value closing inventory Cost b Low of color market o Other (attach explanation) 34 Was there any change in determining quantities, costs, or valuation between opening and closing Inventory? Yestach planation Yes No 36 Inventory at beginning of year. It different from last year's cloning inventory, attach explanation Purchases les cost of items withdrawn for personal use Coat of labor. Do not include any amounts paid to yoursel 36 37 37 38 Materials and supplies 29 Other con 40 Add iner mough 40 81 45 ventory of 42 Cost of goods sold Subtractine 1 from interese and on 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 4552 When YOU DIROR Y con service for business & Indu or the total number ones you drove you wniclu dung 2020, the number of mes you used you nice for Commuting the national Was you wann during yours? O Yes No Do you for your provable for personnel Yes Ne Yes Ne Yes No Part V she wider Other Expenses List below business expenses not included on line 820 or no 12 80% + 2020 HEDULE SE OM NA 1545-007 orm 1040) Self-Employment Tax Go to www.in.gov/Schedules for instructions and the latest information art of the Town Attachment amer Service Attach to Form 1040,1040-SR, ar 1040-NR. Senda No. 17 ame of person with employment income as shown on Form 1040 1040-SR, or 1040-NP Social security number of person with well-employment income Part 1 Self-Employment Tax Hote: If your only income subject to self-employment tax is church employee income, se instructions for how to report your incon and the definition of church employee income. A # you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part 1 Skip lines 18 and 1b if you use the farm optional method in Part I See Instructions ta Net farm profit or loss) from Schedule F, line 34, and farm partnerships Schedule K-1 (Form 1065). 14, code A b 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 Skip line 2 if you use the nonfarm optional method in Part II See instructions 2 Net profit or loss from Schedule C, line 31; and Schedule K-1 Form 1065), box 14, code A (other than farming See Instructions for the income to report or if you are a minister or member of a religious order 3 Combine lines 1a, 1b, and 2 3 4 line 3 is more than zero, multiply line 3 by 92.35% 0.9235). Otherwise, enter amount from line 3 Note: It line 4a is less than $400 due to Conservation Reserve Program payments on lineb, see instructions byou elect one or both of the optional methods, enter the total of lines 15 and 17 here Combine lines and 4b. I less than $400, stops you don't owe self-employment tax. Exception less than $400 and you had church employee income, enter-O and continue 4c se Enter your church employee income from Form W-2. See Instructions for definition of church employee income Sa Multiply line Sa by 92.35% 0.9235). less than $100, enter- Sb 6 Add lines and 5b 6 7 Maximum amount of combined wages and self-employment saminga subject to social security tax or the 62% portion of the 7.65 road retirement er 1) tax for 2020 7 137.700 Ba Total social security wages and tips total of boxes 3 and 7 on Forms W-2) and road retirement or 1) compensation. If $137.700 or more skip lines Bb through 10. and go to line 11 La Unreported is subject to social security tax from Form 4137, line 10 Wage subject to social security tax from Form 919, line 10 Bc d Addines Bab, and Bc Subtract ned from line 7. I ores entero-here and on line 10 and go to line 11 9 10 Multiply the smaller of line 6 ne by 12.4% 0.124) 10 11 Multiply line by 2.0 (0.029 11 12 Self-employment tax. Add lines 10 and 11. Enter here and on schedule 2 Form 1040, line 4 12 Deduction for one that of self-employment tax Multiply line 12 by son 10.507. Enter here and on Schedule 1 Form 1040 line 14 13 Part II Optional Methods To Figure Net Earningscentructions Form Optional Method. You may this method only all your or farm income want more than 58 AGF oyunutar prowwe than 10.107 14 Maximum income for optional methods Enter the sale of two-thirds Auf gross arm come noise 55.6-40. Anclude 15 Norm Optional Mathed. You may this method only your profiter Than 107 des than 2.100 your room and you ning room Caution Voya mormant 19 Te 17 Eraberite 10.A 3-ES 14 - Schule E Form 1040 2020 Attachment Sequence No. 17 Page 2 Part II Maximum Deferral of Self-Employment Tax Payments If line 4c is zero, skip lines 18 through 20, and enter-0-on line 21. 18 Enter the portion of line 3 that can be attributed to March 27, 2000, through December 31, 2020 19 19 W line 18 is more than zero, multiply line 18 by 92.35% (0.9235 otherwise, enter the amount from line 18 19 20 Enter the portion of lines 15 and 17 that can be attributed to March 27, 2020, through December 31, 2020 20 21 Combine lines 19 and 20 21 line Sb is zero, skip line 22 and enter-O-on line 23 22 Enter the portion of line 5a that can be attributed to March 27, 2020, through December 31, 2020 22 23 Multiply line 22 by 92.35% (0.9235 23 24 Add lines 21 and 23 24 25 Enter the smaller of line 9 or line 24 25 25 Multiply line 25 by 6.2% (0.062). Enter here and see the instructions for line 12e of Schedule 3 (Form 1040) Schedule Form 1040 2030 Tax Return Assignment #2 Assignment due: Friday, April 16, 2021, 11:59PM Prepare the 2020 1040 for the information listed below. John and Abigail Adams are both 40 years old. John is an executive and Abigail is a seamstress. They live at 1250 Hancock Street, Quincy, MA 02169. They file their tax return together as married filing jointly. 1. John earned $90,250 and had federal taxes withheld of $13,000 2. John received $35,000 of which $25,000 is taxable from an annuity account 3. Abigail operates her own Schedule C business, Abby's Colonial Creations. Below is a copy of her profit and loss statement. 4. They itemize their deductions on Schedule A as follows: a. Real estate taxes - 15,000 b. Mortgage interest - 16,500 c Charitable contributions - 3,250 5. They had health insurance for all of 2020. You will use the following 2020 forms: 1. Form 1040 2. Schedule 1 3. Schedule 2 4 Schedule A 5. Schedule 6. Schedule SE - (Part I only) Abby's Colonial Creations Hint for calculating QB1 deduction - Form 1040, line 13 Profit & Loss Tentative Sch C profit XXX Less: deduction for We self employment tax Gross receipts 21,000 Allowable Sch profit XOX Cost of Goods sold 15,000 Multiply by 203 Advertising 500 Insurance 700 Equals el deduction Office expense 400 finput on Form 1000, line 13) Rent (Line 205) 1.850 Repairs 250 com 017090398515847307XBIN Indonelo DODEX Bhole Sanat 1 / 2 90% + O 1040 2020 Detyrave U.S. Individual thcome Tax Return OMB No 1545-0074 ROD Filing Status Single Married fing jointly Married Wing separately MFS) Head of household HOHO Qualifying widowerow Check only you checked the MFS box, enter the name of your spouse. If you checked the HOH or OW box, enter the child's name if the qualifying one box person is a child but not your dependent Your time and in La Your social security number in 'n mens Late Spouse's so cutyumber more Home Member and you a PO bottom Apt.no Presidential Election Campaign Check here if you, or your spouse Iting jointly, want Clorofice you have a foreign com cabelo to go to this fund. Checking a box below will not change Foreign For our Foreign postal code your tax or rand You At any time during 2020, did you receive all send exchange, or otherwise acquire any financial interest in any virtual currency! Elves No Standard Someone can you as dependent Your spouse as a dependent Deduction pour son a separate rotum or you were a dus status in Age/Blindness You Were bom belone Jy2.1990 Are blind Spouse Was bom before awary 2.1956 Is blind Dependents instruction pelo Viorel Letra to you Child Cito than to dependent structions and the here 1 Wote Attach For W-2 2a Txempt interest 2 Taxable interes Quddividende mand Ja 30 Ordinary dividende 4aIRA taxable amount Sa to Tablaount Geocal security benefits 60 b Tasabi mount 7 Capital Altach Schedule Did not red check 3 O come trom Schedule Add 12, b. 67. Then your total income 10 Amants to come Tom Schau 123 10 Chansons you and deduction Scions 10 Adhes 101 106 The your tasto income 100 Tore Than your adjusted gross incante 11 Bandara deduction Home deduction om schedule ta Quincome for Form 13 A 13 14 15 15 1040 - A - 111 90% HEDULE 1 OUR NO. 1545-0074 orm 1040) Additional Income and Adjustments to Income 2020 of the Attach to Form 1040,1040-5R, or 1040-NR. Ahmet and Service Go to www.in. powl Form1000 for instructions and the latest Information. Sage Na 01 amels) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 21 Part Additional Income 1 1 Taxable refunds, credits, or offsets of state and local income taxes. 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 3 Business income or (loss). Attach Schedule C 4 4 Other gains or losses). Attach Form 4797 5 5 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 6 6 Farm income or loss). Attach Schedule F 7 Unemployment compensation 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 9 Part II Adjustments to Income 10 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government 11 officials. Attach Form 2106 12 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 14 Deductible part of self-employment tax. Attach Schedule SE 15 15 Set-employed SEP, SIMPLE, and qualified plans 16 16 Self-employed health insurance deduction 17 17 Penalty on early withdrawal of savings 18a 18a Alimony paid b Recipient's SSN c Date of original divorce or separation agreement (see instructions) 19 19 IRA deduction 20 20 Student loan interest deduction 21 21 Tuition and foes deduction. Attach Form 8917 22 Add lines 10 though 21. These are your adjustments to income. Enter here and 22 on Form 1040 1040-SA O 1040-NR 101 111 80% 2020 SCHEDULE A Itemized Deductions OM NO. 1545-0074 Form 1040) Go to www.in.gov/Schedule for instructions and the latest Information. Department of Attach to Farm 1040 or 1000-SR. Alicet how to if you are in a nequited disaster loss on Form4684, the natructions for ine 16 fegance 07 New hown. Form 1104- Your aalay Medical and Dental Expenses Taxes You Pald Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (be instructions 2 Ente amount from Form 1040 or 1040-SR, line 11 21 3 Multiply line 2 by 7.5% (0.075) 3 4 Subtracting from fine fino 3 is more than in Inter-O- 5 State and local to a State and local income taxes or general sales taxes. You may include alther income tax or general sales taxes on line 5, but not both you bect to include general sales taxes instead of income taxes, check this box 5a State and local real estate taxes (see instructions) 5b c State and local personal property taxes 5c dAdd lines Sa though 5c 5d Enter the smaller of line 5d or $10.000 ($5,000 married filing separately 50 6 Others List type and amount Interest You Paid 7 Add nese and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan to buy bulld of improve your home, se instructions and check this box a Home mortgage interest and points reported to you on Form 1095 See instructions imited Home more interes not reported to you on Form 1008 50 instructions if limited. I paid to the person trom whom you bought the home see instructions and show that person's name, identifying to and address Ba Bb e Points not reported to you on Form 1098 Sestructions for social Be d Mortgage Insurance premium intruction ed Add lines through id Be ement interest. Attach Form 4952 od Sunction 10 Add in and 10 11 Os by cash or check you made any of 1350 or more se Charity struction 11 12 Ohty cash or check you made any of 250 or more tructions. You must attach Fon for 3500 12 13 Carver from prior year 13 14 County and 15 andromeday declared other than reguld That LAN los Altach Form 4004 and enter the amount from 18 of that for the Other 15 on list type and more Deductions Total 10 17 SCHEDULEC Profit or Loss From Business OMEN 1545-00N (Form 1040 (Sole Proprietorship) 2020 Dette The Go to www.in.gov/Schedule for marions and the latest Information Word Service Attach to Form 1040 1040-SRL 1040-, or 1001partnere generally must file Fom 100 SeguN 09 Himel proprio Social secuumber Principal business or profession, Including product of Viestructions BE Biename It no separate business, love blank D Employw D NO D Yes Yes al Bursaadress code suite room.no) Cytown polieste, and 2P code Accounting method 10 Cash Accrual other poly Did you musterily participate in the operation of this business during 2007 se intructions for imiton losses H you started or moquired this business during 2020, check there Did you make any peyments in 2020 would require you to fie Form 10997 Ste instructions Eddie woord 10997 Part 1 Income 1 Gross receipts Seeintructions for line and check the box this name was reported to you on Form Wand Story employee box on that for we checked 1 2 Ratusand willows 3 Subtractin2trom line 1 3 4 Cost of goods from in 4 Gross profit. Sinetrom 5 Othernoon, including and states or ureditvefunden Gross income Add Sande Part Expenses. Enteropenses for business use of your home only on line 30. 18 Office opere 18 5 Ordrucken TO Persidangan 10 con 20 con 10 Commons 10 View and on Other property 200 Deption 21 ta Radman Den andra 22 Speed 23 Tanden Tr Trawl 14 Ded 15 store 24 2018- 36 Wood 27a Oro Retour 20 Com 22 30 2 75% + Page 2 Schedule Form 1046) 2010 Part III Cost of Goods Sold (see instructions 38 Methods used to Value closing inventory Cost b Low of color market o Other (attach explanation) 34 Was there any change in determining quantities, costs, or valuation between opening and closing Inventory? Yestach planation Yes No 36 Inventory at beginning of year. It different from last year's cloning inventory, attach explanation Purchases les cost of items withdrawn for personal use Coat of labor. Do not include any amounts paid to yoursel 36 37 37 38 Materials and supplies 29 Other con 40 Add iner mough 40 81 45 ventory of 42 Cost of goods sold Subtractine 1 from interese and on 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 4552 When YOU DIROR Y con service for business & Indu or the total number ones you drove you wniclu dung 2020, the number of mes you used you nice for Commuting the national Was you wann during yours? O Yes No Do you for your provable for personnel Yes Ne Yes Ne Yes No Part V she wider Other Expenses List below business expenses not included on line 820 or no 12 80% + 2020 HEDULE SE OM NA 1545-007 orm 1040) Self-Employment Tax Go to www.in.gov/Schedules for instructions and the latest information art of the Town Attachment amer Service Attach to Form 1040,1040-SR, ar 1040-NR. Senda No. 17 ame of person with employment income as shown on Form 1040 1040-SR, or 1040-NP Social security number of person with well-employment income Part 1 Self-Employment Tax Hote: If your only income subject to self-employment tax is church employee income, se instructions for how to report your incon and the definition of church employee income. A # you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part 1 Skip lines 18 and 1b if you use the farm optional method in Part I See Instructions ta Net farm profit or loss) from Schedule F, line 34, and farm partnerships Schedule K-1 (Form 1065). 14, code A b 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 Skip line 2 if you use the nonfarm optional method in Part II See instructions 2 Net profit or loss from Schedule C, line 31; and Schedule K-1 Form 1065), box 14, code A (other than farming See Instructions for the income to report or if you are a minister or member of a religious order 3 Combine lines 1a, 1b, and 2 3 4 line 3 is more than zero, multiply line 3 by 92.35% 0.9235). Otherwise, enter amount from line 3 Note: It line 4a is less than $400 due to Conservation Reserve Program payments on lineb, see instructions byou elect one or both of the optional methods, enter the total of lines 15 and 17 here Combine lines and 4b. I less than $400, stops you don't owe self-employment tax. Exception less than $400 and you had church employee income, enter-O and continue 4c se Enter your church employee income from Form W-2. See Instructions for definition of church employee income Sa Multiply line Sa by 92.35% 0.9235). less than $100, enter- Sb 6 Add lines and 5b 6 7 Maximum amount of combined wages and self-employment saminga subject to social security tax or the 62% portion of the 7.65 road retirement er 1) tax for 2020 7 137.700 Ba Total social security wages and tips total of boxes 3 and 7 on Forms W-2) and road retirement or 1) compensation. If $137.700 or more skip lines Bb through 10. and go to line 11 La Unreported is subject to social security tax from Form 4137, line 10 Wage subject to social security tax from Form 919, line 10 Bc d Addines Bab, and Bc Subtract ned from line 7. I ores entero-here and on line 10 and go to line 11 9 10 Multiply the smaller of line 6 ne by 12.4% 0.124) 10 11 Multiply line by 2.0 (0.029 11 12 Self-employment tax. Add lines 10 and 11. Enter here and on schedule 2 Form 1040, line 4 12 Deduction for one that of self-employment tax Multiply line 12 by son 10.507. Enter here and on Schedule 1 Form 1040 line 14 13 Part II Optional Methods To Figure Net Earningscentructions Form Optional Method. You may this method only all your or farm income want more than 58 AGF oyunutar prowwe than 10.107 14 Maximum income for optional methods Enter the sale of two-thirds Auf gross arm come noise 55.6-40. Anclude 15 Norm Optional Mathed. You may this method only your profiter Than 107 des than 2.100 your room and you ning room Caution Voya mormant 19 Te 17 Eraberite 10.A 3-ES 14 - Schule E Form 1040 2020 Attachment Sequence No. 17 Page 2 Part II Maximum Deferral of Self-Employment Tax Payments If line 4c is zero, skip lines 18 through 20, and enter-0-on line 21. 18 Enter the portion of line 3 that can be attributed to March 27, 2000, through December 31, 2020 19 19 W line 18 is more than zero, multiply line 18 by 92.35% (0.9235 otherwise, enter the amount from line 18 19 20 Enter the portion of lines 15 and 17 that can be attributed to March 27, 2020, through December 31, 2020 20 21 Combine lines 19 and 20 21 line Sb is zero, skip line 22 and enter-O-on line 23 22 Enter the portion of line 5a that can be attributed to March 27, 2020, through December 31, 2020 22 23 Multiply line 22 by 92.35% (0.9235 23 24 Add lines 21 and 23 24 25 Enter the smaller of line 9 or line 24 25 25 Multiply line 25 by 6.2% (0.062). Enter here and see the instructions for line 12e of Schedule 3 (Form 1040) Schedule Form 1040 2030

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