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Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Carl and Elizabeth Williams are married filing jointly. They are 45 and 40 years old, respectively. Their address is 19010 N.W. 135th Street, Miami, FL 33054. Additional information about Mr. and Mrs. Williams is as follows: Social security number: Carl: 412-34-5670 Date of birth: 7/13/1976 W-2 for Carl shows these amounts: Wages (box 1) Federal W/H (box 2) = Social security wages (box 3) = Social security W/H (box 4) = Medicare wages (box 5) = Medicare W/H (box 6) = $ 75,000.00 $ 6,950.00 $ 75,000.00 $ 4,650.00 $ 75,000.00 $ 1,087.50 Social security number: Elizabeth: 412-34-5671 Date of birth: 9/19/1981 W-2 for Elizabeth shows these amounts: Wages (box 1) = Federal W/H (box 2) = Social security wages (box 3) = Social security W/H (box 4) = Medicare wages (box 5) = Medicare W/H (box 6) = $ 31,000.00 $ 3,700.00 $ 31,000.00 $ 1,922.00 $ 31,000.00 $ 449.50 Form 1099-INT for Carl and Elizabeth shows this amount: Box 1 = $2,450.00 from Global Bank. They also received tax-exempt interest of $500.00, as well as $45.00 for jury duty pay when Carl went to court to serve for a few days. Carl received two weeks of workers' compensation pay for a total of $3,100.00. Dependent: Son, Carl Jr., who is 7 years old. His date of birth is 3/25/2014. His social security number is 412-34-5672. Carl is a sales manager, and Elizabeth is an office clerk. Required: Prepare Form 1040 plus all the appropriate schedules and worksheets for Mr. and Mrs. Williams for 2021. They are entitled to a $3,000 child tax credit. For now, enter the credit on the appropriate line of the form. The Williamses did not have any foreign accounts. They do not want to contribute to the presidential election campaign. Use the appropriate Tax Tables. Note: List the names of the taxpayers in the order in which they appear in the problem starting from the first line. Input all the values as positive numbers. Do not skip rows while entering in Dependents section of Form 1040 PG1 and Interest section of Schedule B.
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