This tax form/return preparation problem uses the same information as Problem I:7-62
EXCEPT it applies to the 2021 tax year rather than 2022. Actual government tax forms for 2022 are unavailable at the time of publication. To complete the 2021 tax return for Dan M. and Cheryl A. Peters, all dates must be changed to the immediately prior year. For example, all of the 2022 dates in Problem I:7-62 must be changed to 2021 and other dates moved back one year.
Below are the significant date changes for Problem I:7-62:
• All wages and taxes withheld should be changed to 2021.
• All interest and dividends should be changed to 2021.
• Sales of stocks: All dates for the three stock sales should be changed to 2021. For dates of purchase, the first two should be changed to 2016 and 2019, respectively, and the third purchase date should be changed to 2021.
• All other dates relating to deductions and tax payments should be changed to 2021. Be sure to use 2021 tax forms and 2021 tax rates.