Completing Tax Return for Maria and David Mean

Please complete the tax return for Maria and David Mean, as well as write them a letter to them indicating why you included or exculded certain information.

Maria and David Mean are married and will file a joint return from 2020. Maria’s Social Security number is 569-48-6932 and her birth date is 1/4/1975. David’s Social Security number is 485-98-2566 and his birth date is 2/7/1973. They live at 5970 Scotch wood Glen, West Haven, CT 06516.

Maria is a teacher, and below is her W-2:

Maria and David have an 18-year-old son named Lynk (Social Security number 456-91-4789), who is a dependent that lives with them, and is a full-time student. They also have a 10-year-old daughter Abby (Social Security number 568-84- 9632).

Maria received a Form 1099 for their bank interest from SunTrust Bank:

Maria has an ex-husband named Emmanuel Garcia. Pursuant on their January 15^th, 2018 divorce decree, Maria pays him $300 per month in alimony. All payments were made on time in 2020. Emmanuel’s Social Security Number is 458-98-6321.

David bought a lottery ticket on impulse in 2020. His ticket was lucky, and he won $2,450. The winning amount was paid to David in November 2020 and no income tax was withheld.

David owns a coffee shop named, “Java Beans.” The Shop is located at 25 Main Street, Orange, CT 06477. The business EIN is 25-7896321. During 2020, they had the following Expenses:

Store Rental

Office Expenses Advertising

City Business License Payroll

Payroll Taxes Utilities

Supplies

$125,000

$19,000 $4,500 $12,400 $575 $25,250 $4,125 $8,000 $45,275

Other $6,000

The Means provide sole support for David’s father, Ronald (Social Security Number 124-78-6033). Ron lives in his own home.

In order for the Mean’s to work, Abby attends an afterschool program at the Boys and Girls Club of West Haven, 52 Church Street, EIN 58-9845663. In 2020 they paid $1,740 for her to attend the program.

During 2020, Maria and David paid the following amounts (all which can be substantiated):

Home Mortgage Interest (1098 not shown) Auto Loan Interest

State Sales Tax

Property Taxes on Personal Residence Unreimbursed Hospital Bills

Doctor Bills

Other Deductible medical expenses Income Tax Preparation Fee

$8,800 $2,300 $820 $3,233 $3,275 $2,896 $720 $525

Complete the Tax Return for Mr. & Mrs. Mean. Use Forms 1040, Schedule 1, and schedule C.Additional forms may be needed. Make realistic assumptions about missing information.