a-4. Complete Schedule 3 of Form 1040 for Reba. Visit the IRS website and download Schedule 3 of Form 1040. Enter the required values in the appropriate fields.

2021 Tax Rate Schedules

Individuals

Schedule X-Single

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,950	10% of taxable income
$ 9,950	$ 40,525	$995 plus 12% of the excess over $9,950
$ 40,525	$ 86,375	$4,664 plus 22% of the excess over $40,525
$ 86,375	$ 164,925	$14,751 plus 24% of the excess over $86,375
$ 164,925	$ 209,425	$33,603 plus 32% of the excess over $164,925
$ 209,425	$ 523,600	$47,843 plus 35% of the excess over $209,425
$ 523,600		$157,804.25 plus 37% of the excess over $523,600

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over:	But not over:	The tax is:
$ 0	$ 19,900	10% of taxable income
$ 19,900	$ 81,050	$1,990 plus 12% of the excess over $19,900
$ 81,050	$ 172,750	$9,328 plus 22% of the excess over $81,050
$ 172,750	$ 329,850	$29,502 plus 24% of the excess over $172,750
$ 329,850	$ 418,850	$67,206 plus 32% of the excess over $329,850
$ 418,850	$ 628,300	$95,686 plus 35% of the excess over $418,850
$ 628,300		$168,993.50 plus 37% of the excess over $628,300

Schedule Z-Head of Household

If taxable income is over:	But not over:	The tax is:
$ 0	$ 14,200	10% of taxable income
$ 14,200	$ 54,200	$1,420 plus 12% of the excess over $14,200
$ 54,200	$ 86,350	$6,220 plus 22% of the excess over $54,200
$ 86,350	$ 164,900	$13,293 plus 24% of the excess over $86,350
$ 164,900	$ 209,400	$32,145 plus 32% of the excess over $164,900
$ 209,400	$ 523,600	$46,385 plus 35% of the excess over $209,400
$ 523,600		$156,355 plus 37% of the excess over $523,600

Schedule Y-2-Married Filing Separately

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,950	10% of taxable income
$ 9,950	$ 40,525	$995 plus 12% of the excess over $ 9,950
$ 40,525	$ 86,375	$4,664 plus 22% of the excess over $40,525
$ 86,375	$ 164,925	$14,751 plus 24% of the excess over $86,375
$ 164,925	$ 209,425	$33,603 plus 32% of the excess over $164,925
$ 209,425	$ 314,150	$47,843 plus 35% of the excess over $209,425
$ 314,150		$84,496.75 plus 37% of the excess over $314,150

Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2021. She is 45 years old and has been divorced for four years. She receives $1.200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19.500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce. Reba has been wanting to move back to Georgia to be closer to her family. Luckily. last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2.010 to move their personal belongings, and she and Heather spent two days driving the 1.426 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3.000 partial tuition scholarship this year , and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5.800 in state income taxes and $12.500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Insurance premiums Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for Heather $ 7,952 $ 1,100 $ 350 $ 100 $ 200 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $900 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago. Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1.500 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12.000, but she did not sell any of her stocks. Heather reported $6.200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather's only source of income for the year. Reba had $10,000 of federal income taxes withheld by her employer. Heather made $1,000 of estimated tax payments during the year. Reba did not make any estimated payments. Assume Reba received the correct advance payment for her 2021 individual recovery credit. a-1. Determine Reba's federal Income taxes due or taxes payable for the current year. Use Ta> round Intermediate values. Round your final answers to the nearest whole dollar amount. I applicable.) ef 5 Answer is complete and correct. Amount IS 38,000 $ 14,400 50,000 $ $ 1.200 $ 2,200 Description Gross Income: Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds (1) Gross income Deductions for AGI: Expenses for rental property (2) Total for AGI deductions (3) AGI From AGI deductions: $ 0 IS 105,800 $ A 19,500 19,500 $ IS 86.300 Medical expenses $ 3,130 State income taxes IS 5.800 BO IS 12,500 IS 21,430 $ 18,800 Charitable contributions (4) Total itemized deductions (5) Standard deduction (6) Greater of itemized deductions or standard deduction (7) Taxable income (8) Tax on taxable income (9) Credits $ $ 21,430 64.870 8,587 $ $ (685) $ 10,000 (10) Tax prepayments Tax refund > S (2,118) Page 2 SCHEDULE 3 Additional Credits and Payments OMB No. 1545-0074 (Form 1040) 2021 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Internal Revenue Service Reus Attachment Go to www.lrs.gov/Form 1040 for instructions and the latest information Sure Na 03 Names) shown on Form 1040, 1040-SR, or 1040-NR Your social security number 9 10 11 12 4 5 Schedule Form 1040 2021 Part II Other Payments and Refundable Credits 9 Net premium tax credit. Attach Form 8962. ...... . 10 Amount paid with request for extension to file (see instructions) 11 Excess social security and tier 1 RRTA tax withheld 12 Credit for federal tax on fuels. Attach Form 4136. 13 Other payments or refundable credits: a Form 2439..................... 13a b Qualified sick and family leave credits from Schedule(s) H and Formis) 7202 for leave taken before April 1, 2021 ...... 13 c Health coverage tax credit from Form 8885 ....... 13C d Credit for repayment of amounts included in income from earlier years.......... 13d e Reserved for future use 13e f Deferred amount of net 965 tax liability (see instructions)... 13f g Credit for child and dependent care expenses from Form 2441, line 10. Attach Form 2441 ............... 139 h Qualified sick and family leave credits from Schedule(s) H and Form(s) 7202 for leave taken after March 31, 2021 ..... 13h z Other payments or refundable credits. List type and amount 1132 14 Total other payments or refundable credits. Add lines 13a through 13z 15 Add lines 9 through 12 and 14. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 31 Ba Part Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required .............. 1 2 Credit for child and dependent care expenses from Form 2441, line 11. Attach Form 2441 ........... 2 3 Education credits from Form 8863, line 19 3 Retirement savings contributions credit. Attach Form 8880 4 5 Residential energy credits. Attach Form 5695 6 Other nonrefundable credits: a General business credit. Attach Form 3800 Credit for prior vear minimum b Credit for prior year minimum tax. Attach Form 8801 6b c Adoption credit. Attach Form 8839 d Credit for the elderly or disabled. Attach Schedule R. 6d e Alternative motor vehicle credit. Attach Form 8910 6e f Qualified plug-in motor vehicle credit. Attach Form 8936 . 6f Estate Attach Form 9996 g g Mortgage interest credit. Attach Form 8396 69 District of Columbia first time homshier credit h District of Columbia first-time homebuyer credit. Attach Form 8859 i Qualified electric vehicle credit. Attach Form 8834 Alternative fuel vehicle refueling property credit. Attach Form 8911 6j k Credit to holders of tax credit bonds. Attach Form 8912 ... 6k Amount on Form 8978, line 14. See instructions 61 z Other nonrefundable credits. List type and amount 6z Total other nonrefundable credits. Add lines 6a through 6z..... 7 Add lines 1 through 5 and 7. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 20 ............................... (continued on page 2) For Paperwork Reduction Act Notice, see your tax return instructions Cal. No. 71480G Schedule 3 (Form 1040 2001 G. oe es SH 14 61 15 Schedule 3 (Form 1040) 2021 7 8 8