Tax Return

Please complete a 2020 Form 1040 for Chunhui:
Chunhui Franco is not married and supports her 12-year-old child who lives with
her. Chunhui works as a self-employed driver with gross revenue of $46,700 and
business expenses of $13,400 (make-up the character of the expenses, e.g.,
supplies). Chunhui’s only other income was interest of $7,300, qualifying dividends
of $2,450, and other information follows:
Contribution to solo Section 401(k) retirement plan $ 3,500
Loss on sale of Alphatech stock held 2 years -3,400
Mortgage interest on primary residence 6,950
State and local property tax on residence 8,350
Property tax included in personal auto registration 260
State sales taxes paid 370
State income taxes paid 1,450
Charitable contributions of cash 1,750
Political contributions 550
Three comments that will help:
 Qualified dividends are included in ordinary dividends on the form 1040.
 You are not required to complete the Schedule D Worksheet. Just consult the
last example in “drnos Capital Gain calcs 2020.ppt” to calculate the tax.
 Claim the QBI deduction on the appropriate line of the Form 1040, but no
additional form is required.