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Barbara Gonzales, age 53, is a self-employed tax attorney (social security number 444-88-9999). She is supporting her mother, Martha Garza, age 85 who lives with

Barbara Gonzales, age 53, is a self-employed tax attorney (social security number 444-88-9999). She is supporting her mother, Martha Garza, age 85 who lives with her. Marthas social security number is 666-99-4444. Barbara lives in a rental at 4597 Campbell Ave. Campbell, CA 95008 Barbaras office is located at 6578 Hamilton Ave. Ste. 456, San Jose, CA 95130. Her business name is her name- Barbara Gonzales, Attorney. She materially participates in her business. She has the following income and expenses pertaining to her business. Barbaras gross receipts for 2021 $189,300 Expenses: Insurance $5800 Office Supplies $4897 Payroll $49,455 Depreciation $1489 ( on her office furniture and computer and printers- you do not have to prepare a depreciation form) Telephone and internet $5699 Rent $ 18000 Advertising $ 1264 Software fees for tax preparation $8,451 Education needed to keep up on latest tax laws $2575 The business uses the cash basis of accounting. Other income includes Interest from Wells Fargo, $249. This income is not part of her business income and belongs on page 1 of Form 1040. You will need to calculate self-employment taxes as well as making sure you include on schedule 1 the adjustment on line 15 for one half of self-employment tax. Barbara sent estimated tax payments to the IRS for the 2021 taxes totaling $15000. Prepare Barbaras Form 1040 tax return for 2021. Schedules 1 and 2 are required. You should also prepare a Schedule C and Schedule SE for self-employment tax. On Form 1040 line 13 you should include the amount of Qualified Business Income you calculated using Form 8995, which must also be included in the forms you submit. To recap, include Form 1040, Schedules 1 and 2, Schedule C, Schedule SE, and Form 8995. On Form 8995, hint: line 11, 13 are both the same number, $66,643. Hint 2- the interest income from Wells Fargo belongs on Form 1040, line 2b.

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