I:14-69 Harold J. Milton (SSN 111-22-1111) is 66 years old and unmarried, filing single with no dependents. He had no transactions involving any virtual currency during the year. He had the following income and deductions for 2021:

Salary $177,000 State income taxes $18,000 Interest income from State Bank Dividend income (qualified)

Deductible IRA contribution Tax-exempt interest income from municipal bonds Charitable contributions Medical expenses (before the floor)

12,000 18,000 5,000 24,000 27,000 18,000 Mortgage interest expense on residence (100% acquisition debt) 19,000 Interest expense on car loan 3,000 Real estate taxes on residence Miscellaneous deductions—

other (before the floor)

2,000 12,000 Income taxes withheld 20,000 Estimated tax payments

($2,500 per quarter)

10,000 Complete Milton’s 2021 Form 1040-SR, Schedules 1, 2, 3, A, B and Form 8960. In 2020, Milton had AGI of $200,000 and his income tax liability was $46,000.