Prepare Kelly and Chanelle′s tax return Form 1040 and schedules A,B,C,D and SE For 2020. Assume the couple had no transactions involving virtual currency. Make sure to treat dividends as qualified dividends and manually complete the capital gains tax worksheet (as you do for tax return 1). Form 1040 Adjusted Gross Income: 114,785 Schedule 1 page 1 total on line 10: 20,550 Schedule A Total Itemized Deductions: 25,191 (make sure to use 7.5% of AGI for medical cutoff) Schedule C Net Profit or Loss: 13,650 Schedule SE and Schedule 2, Self Employment tax: 1929 For the 1040 QBI deduction, use $2,537. You do not need to calculate this, just use this number. Form 1040 Taxable Income: 87,057
