Robert Howers (SSN:111-11-1111, Date of birth 02/05/1981) recently became a single Dad when his wife left him and their child and a divorce settlement was finalized on 3/2/2019. He and his 12 year old daughter, Aisha (SSN 222-22-2222, date of birth 5/2), live in the marital home with Robert’s 72 year old mother. His father died 10 years ago leaving his mother, Beulah (SSN: 333-33-3333 date of Birth 8/16), destitute with only his social security benefits to live on. Beulah receives $11,000 of Social security income annually. Robert provides 85% of his mother’s support annually.
Robert received the following in 2020:
$113,000 W-2 salary with $12750 withheld for federal income tax.
Interest income from a Bank of America savings account $78.
Alimony from his former spouse $11,000.
Child Support $9000.
Robert’s employer provides the family with a high deductible PPO medical insurance policy. Robert funded his family health saving account $5000 in 2020.
Robert’s great Uncle (bachelor) on his father’s side, is recently deceased (10/12/38) and left Robert 1000 shares of Boeing (BA) and 3,000 shares of Delta (DAL) airlines stock. Great Uncle Albert was a retired mechanic from the Vietnam war and then for Delta Airlines. Uncle Albert’s date of death was 10/12/18 when the FMV (fair market value) of BA was $360 a share and DAL was $52. A share. Uncle Albert purchased both stocks in 1980 for $10 a share. Robert sold all his inherited BA and DAL stock on 3/20/2020 for $95 a share and $21. The brokerage house that handled the stocks sales had no basis on file for these stocks for Robert, but did provide Robert a 1099B.
Robert has the following other items to consider:
Address: 13 Apple street, Saint Petersburg, Fl 33702
No cryptocurrency or foreign accounts and transaction exist. If they did, they would require additional reporting. See top 1040 page 1 and Sch B bottom.
Dividends from BA $2060 and DAL $1200 in 2020
Political campaign contribution $100, Clothes to Salvation Army, thrift store value $300, Cash donations to Qualified schools and places of worship $8250. Tax preparation fee paid to H