Read the following scenario. Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2018. Alfred and Be

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Read the following scenario. Alfred E. Old and Beulah A. Crane,
each age 42, married on September 7, 2018. Alfred and Beulah will
file a joint return for 2020. Alfred’s Social Security number is
111-11-1109. Beulah’s Social Security number is 123-45-6780, and
she has chosen to use “Old” as her married name. They live at 211
Brickstone Drive, Atlanta, GA 30304. Alfred was divorced from Sarah
Old in March 2017. Under the divorce agreement, Alfred is to pay
Sarah $1,250 per month for the next 10 years or until Sarah’s
death, whichever occurs first. Alfred paid Sarah $15,000 in 2020.
In addition, in January 2020, Alfred paid Sarah $50,000, which is
designated as being for her share of the marital property. Also,
Alfred is responsible for all prior years’ income taxes. Alfred’s
salary for 2020 is $150,000. He is an executive working for Cherry,
Inc. (Federal I.D. No. 98-7654321). As part of his compensation
package, Cherry provides him with group term life insurance equal
to twice his annual salary. His employer withheld $24,900 for
Federal income taxes and $8,000 for state income taxes. The proper
amounts were withheld for FICA taxes. Beulah recently graduated
from law school and is employed by Legal Aid Society, Inc. (Federal
I.D. No. 11-1111111), as a public defender. She received a salary
of $42,000 in 2020. Her employer withheld $7,500 for Federal income
taxes and $2,400 for state income taxes. The proper amounts were
withheld for FICA taxes. Alfred and Beulah received a taxable
interest income of $500. They received a $1,900 refund on their
2019 state income taxes; they claimed the standard deduction on
their 2019 Federal income tax return. Alfred and Beulah paid $4,500
interest and $1,450 property taxes on their personal residence in
2020. They paid sales taxes of $1,400, for which they maintain the
receipts. Alfred and Beulah have never owned or used any virtual
currency, and they do not want to contribute to the Presidential
Election Campaign. Alfred and Beulah received the appropriate
coronavirus recovery rebates (economic impact payments).
Go to www.irs.gov (Links to an external site.). You will use the
two forms listed below to complete the return based on the
information provided. Find the heading Forms & Instructions and
select the option Search Forms and Instructions. Select List All
Current Forms & Instructions. In the Find field, type 1040.
Chose Form 1040, Revision date 2020. This will open up a 1040 tax
form. Complete the form then select Download and save. Return to
the previous page and select Form 1040 (Schedule 1) for 2020. This
will open up Form 1040 (Schedule 1). Complete this form.