Alice J$.$ and Bruce M$.$ Byrd are married taxpayers who file a joint return. Their Social Security numbers are $123-45-6784$ and $111-11-1113,$ respectively. Alice$$s birthday is September $21,1974,$ and Bruce$$s is June $27,1973.$ They live at $473$ Revere Avenue, Lowell, MA $01850.$ Alice is the office manager for Lowell Dental Clinic, $433$ Broad Street, Lowell, MA $01850($Employer Identification Number $98-7654321).$ Bruce is the manager of a Super Burgers fast$-$food outlet owned and operated by Plymouth Corporation, $1247$ Central Avenue, Hauppauge, NY $11788($Employer Identification Number $11-1111111).$

The following information is shown on their Wage and Tax Statements $($Form W$2)$ for $2021.$

Line Description Alice Bruce

$1$ Wages, tips, other compensation $$58,000$ $$62,100$

$2$ Federal income tax withheld $4,5005,300$

$3$ Social Security wages $58,00062,100$

$4$ Social Security tax withheld $3,5963,850$

$5$ Medicare wages and tips $58,00062,100$

$6$ Medicare tax withheld $841900$

$15$ State Massachusetts Massachusetts

$16$ State wages, tips, etc. $58,00062,100$

$17$ State income tax withheld $2,9503,100$

The Byrds provide over half of the support of their two children, Cynthia $($born January $25,1997,$ Social Security number $123-45-6788)$ and John $($born February $7,2001,$ Social Security number $123-45-6780).$ Both children are full$-$time students and live with the Byrds except when they are away at college. Cynthia earned $$6,200$ from a summer internship in $2021,$ and John earned $$3,800$ from a part$-$time job. Both children received scholarships covering tuition and materials.

During $2021,$ the Byrds provided $60\%$ of the total support of Bruce$$s widower father, Sam Byrd $($born March $6,1945,$ Social Security number $123-45-6787).$ Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam$$s life, received life insurance proceeds of $$1,600,000$ on December $28.$

The Byrds had the following expenses relating to their personal residence during $2021$:

Property taxes $$5,000$

Qualified interest on home mortgage $($acquisition indebtedness$)8,700$

Repairs to roof $5,750$

Utilities $4,100$

Fire and theft insurance $1,900$

The Byrds had the following medical expenses for $2021$:

Medical insurance premiums $$4,500$

Doctor bill for Sam incurred in $2020$ and not paid until $20217,600$

Operation for Sam $8,500$

Prescription medicines for Sam $900$

Hospital expenses for Sam $3,500$

Reimbursement from insurance company, received in $20213,600$

The medical expenses for Sam represent most of the $60\%$ that Bruce contributed toward his father$$s support.

Other relevant information follows:

$$ When they filed their $2020$ state return in $2021,$ the Byrds paid additional state income tax of $$900.$

$$ During $2021,$ Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association $($a qualified charitable organization$).$ The Byrds paid $$300$ for the tickets. The cost of comparable entertainment would normally be $$50.$

$$ The Byrds contributed $$5,000$ to Lowell Presbyterian Church and gave used clothing $($cost of $$1,200$ and fair market value of $$350)$ to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition.

$$ Via a crowdfunding site $($gofundme$.$com$),$ Alice and Bruce made a gift to a needy family who lost their home in a fire $($$$400).$ In addition, they made several cash gifts to homeless individuals downtown $($estimated to be $$65).$

$$ In $2021,$ the Byrds received interest income of $$2,750,$ which was reported on a Form $1099$INT from Second National Bank, $125$ Oak Street, Lowell, MA $01850($Employer Identification Number $98-7654322).$

$$ The home mortgage interest was reported on Form $1098$ by Lowell Commercial Bank, P$.$O$.$ Box $1000,$ Lowell, MA $01850($Employer Identification Number $98-7654323).$ The mortgage $($outstanding balance of $$425,000$ as of January $1,2021)$ was taken out by the Byrds on May $1,2017.$

$$ Alice$$s employer requires that all employees wear uniforms to work. During $2021,$ Alice spent $$850$ on new uniforms and $$566$ on laundry charges.

$$ Bruce paid $$400$ for an annual subscription to the Journal of Franchise Management and $$741$ for annual membership dues to his professional association.

$$ Neither Alice$$s nor Bruce$$s employer reimburses for employee expenses.

$$ The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax.

$$ This year, the Byrds gave each of their children $$2,000,$ which was then deposited into their Roth IRAs.

$$ Alice and Bruce paid no estimated Federal income tax, and they did not engage in any virtual currency transactions during the year. Neither Alice nor Bruce wants to designate $$3$ to the Presidential Election Campaign Fund. The Byrds received the appropriate recovery rebates $($economic impact payments$)$; related questions in ProConnect Tax should be ignored.

Part $1$Tax Computation

Compute net tax payable or refund due for Alice and Bruce Byrd for $2021$