Chapter 4 TRP 4-1

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.

Jason Ready attended the University of Akron from 2017 to 2021 under the Army ROTC program. Excluding the school expenses covered by his ROTC scholarship, he incurred additional school expenses of $15,000 in total for his education, and $2,250 of that amount was incurred in 2021 for his last semester. To finance these expenses, he borrowed $10,500 through a federal student loan program and borrowed another $4,500 from Buckeye State Credit Union for educational purposes. After graduation, he received his officers commission and was ordered to report to the Military Entrance Processing Station in Portland, Oregon, for duty. He lives off base at 4560 Ranch Drive, Portland, OR 97035. He is single and his social security number is 412-34-5670 (date of birth 7/10/1999).

His W-2 contained the following information:

Wages (box 1) =	$ 67,533.05
Federal W/H (box 2) =	$ 8,204.45
Social security wages (box 3) =	$ 67,533.05
Social security W/H (box 4) =	$ 4,187.05
Medicare wages (box 5) =	$ 67,533.05
Medicare W/H (box 6) =	$ 979.23

In moving to Portland, he incurred the following unreimbursed moving expenses:

$475 in gasoline.

$325 for renting a truck from IGOTYA rentals.

$135 in food.

$520 for motel lodging on the way to Portland.

He also received two Forms 1098-E. One was from the federal student loan program, which showed $550 of student loan interest; the other was from Buckeye State Credit Union and showed $160.40 of student loan interest.

Required:

Prepare a Form 1040, Schedule 1, and a Form 3903. Use the appropriate Tax Tables.

Note: Do not round intermediate computations. Round your final answers to the nearest whole dollar amount. Input all the values as positive numbers. Instructions can be found on certain cells within the forms.