Instructions: Prepare a 2019 Form 1040, Schedule 1, Schedule 3, Schedule E and Form 8814 using the information below. (Note that you are not required to complete any other schedules or forms for this...

Complete the attached tax return


Instructions: Prepare a 2019 Form 1040, Schedule 1, Schedule 3, Schedule E and Form 8814 using the information below. (Note that you are not required to complete any other schedules or forms for this assignment – even though they might be required for the return if submitted to the IRS.) Additional Information: Just as you would with a client, if you have questions about the information provided, you may ask me. To do so, please put your questions in an email. I will give you as much information as a client would be able to do. If you need help with the tax return itself, please see me during office hours or during class. Be sure your email is as professional as it would be for a real client! Client Information: Julia Swanson and her now ex-husband Kevin were legally divorced on March 1, 2018. As of the end of the year, Julia was unmarried. Julia and Kevin had only one child, an 11-year-old girl named Margaret. As part of the divorce decree, Julia was given custody of Margaret, and Kevin was required to pay 1) child support for Margaret’s care, and 2) alimony to Julia until she remarries or dies. Because Kevin will be making child support payments, the divorce decree provided that Kevin will be permitted to claim the tax dependency exemption for Margaret until Margaret no longer qualifies as a tax dependent of either parent and the decree obligates Julia to sign and/or file any required forms to cause this result to occur. Julia rents a home (separate from Kevin) that she pays for herself. Margaret lives with Julia most of the time, but she visits and stays with her father every other weekend and most holidays. During the year, Margaret stayed at Kevin’s house for a total of 74 nights. Julia paid $250 per month to a licensed child care provider for eight months during the school year and $600 per month for four months during school breaks (a total of $4,400 during the calendar year). Julia provided the following information for 2019: · Julia’s Social Security number is 123-19-2092 · Margaret’s Social Security number is 123-34-8888 · Julia’s mailing address is 1245 Rose Petal Drive, Anchorage, Alaska 99577 · Margaret is a U. S. citizen Julia works as a mechanic. The following was reported on Julia’s Form W-2: Employer Gross Wages Federal Income Tax Withholding Central Alaska Heating and Air 40,350 6,950 All applicable and appropriate payroll taxes were withheld by the employer. During the year, Julia also received the following: Child Support Payment from Kevin Swanson$18,000 Alimony Payment from Kevin Swanson$14,000 A gift from her father to help with legal bills$ 9,500 Interest income on U.S. Treasury Bond$ 1,000 Interest income of Madison City Bond (municipal bond)$ 350 Interest income from First Bank of Madison$ 265 Life insurance proceeds on the death of her mother$85,000 Julia and Margaret each received a $1,606 PFD check during the year. Julia is a 50% owner in a friend’s company, Bright Day Flowers, Inc. Bright Day Flowers, Inc. (BDF) is a Subchapter S corporation that makes retail flower sales. The company reported ordinary business income for the year of $26,000. Julia acquired the stock several years ago. Julia worked a total of 600 hours at the BDF shop in the evenings and on the weekends during 2019. Bright Day Flowers, Inc.’s employer identification number is 56-1234555. Julia entered a contest sponsored by a radio station and won 10 tickets to the touring Broadway-style production of Wholesome. The value of the tickets was $250 each. Julia took her friends from work to the production. Julia lost her job with Central Alaska Heating and Air on November 1 because of a reduction in the workforce. She collected $1,850 in unemployment benefits during the year. She is currently looking for another job. Julia had qualifying minimum health insurance coverage provided to her because of her employment with Central Alaska Heating and Air for each month in 2019 (the employer continued to cover her through the end of the year). Margaret had qualifying minimum health insurance coverage provided through Kevin through his work. Julia did not own, control or manage any foreign bank accounts, nor was she a grantor or beneficiary of a foreign trust during the tax year. Julia was provided with the following benefits as part of her employment: · Group-term life insurance coverage of $50,000. The cost to cover Julia for the company for the tax year is $150. · Access to the company photocopy machine. Julia estimates she made $14 worth of copies during the year primarily for use with her church group activities. Julia reported no itemized deductions other than any described above. Julia does not want to contribute to the Presidential Election Campaign Fund. She would like to receive a refund of any tax she may have overpaid for the year. Her preferred method of receiving the refund is by check. She will not owe any penalties if she owes money, and will send payment to the IRS on April 15.