Julio and Maria Gomez are retired and they live at 567 Ono Way, Cambria, CA 94457. Julio's Social Security number is 777-88-5555 and Maria's is 666-88-4444. Julio received Social Security retirement benefits of $28,400 and Maria received Social Security retirement benefits of $22,858. In addition, Maria received a pension from the state of California in the amount of $16,752, and she had $3500 withheld for federal taxes ( include this on page 2 of Form 1040 as a credit towards the tax liability). Julio and Maria also have a savings account with Wells Fargo Bank and they earned $4200 in interest income. Julio and Maria own and live in their own home but do not pay a mortgage because they have paid it completely prior to retiring. Their property taxes are very low and their medical expenses as well so they do not itemize deductions. Julio and Maria have a rental and need to include the income on their tax returns. They received $36000 in rent and had the following expenses for their rental which is located in Cambria, CA. Property taxes $3400 Utilities $1200 Repairs $5478 Depreciation $1234. Prepare their 2020 tax return. Include Forms 1040, Schedule 1, and Schedules B and E.
Julio and Maria Gomez are retired and they live at 567 Ono Way, Cambria, CA 94457. Julio's Social Security number is 777-88-5555 and Maria's is 666-88-4444.
Julio received Social Security retirement benefits of $28,400 and Maria received Social Security retirement benefits of $22,858. In addition, Maria received a pension from the state of California in the amount of $16,752, and she had $3500 withheld for federal taxes ( include this on page 2 of Form 1040 as a credit towards the tax liability). Julio and Maria also have a savings account with Wells Fargo Bank and they earned $4200 in interest income.
Julio and Maria own and live in their own home but do not pay a mortgage because they have paid it completely prior to retiring. Their property taxes are very low and their medical expenses as well so they do not itemize deductions.
Julio and Maria have a rental and need to include the income on their tax returns. They received $36000 in rent and had the following expenses for their rental which is located in Cambria, CA.
Property taxes $3400
Utilities $1200
Repairs $5478
Prepare their 2020 tax return. Include Forms 1040, Schedule 1, and Schedules B and E.
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