Comprehensive Problem 6-63 (LO 6-1, LO 6-2, LO 6-3) (Algo) [The following information applies to the questions displayed below.] Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessie's income is $837. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to the Red Cross $ 129,700 18,460 1,710 728 932 $ 13,700 6,520 7,506 6,320 322 1,210 16,600 2,420 1,750 2,520 4,920 151 2,290 1,674 5,900 3,320 12,740 555 Comprehensive Problem 6-63 Part-b (Algo) b. Complete page 1 of Form 1040 (through taxable income, line 15). Schedule 1, and Schedule A. (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.) Joe's address is 19010 N.W. 135th Street, Miami, FL 33054 Social security numbers: Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123 Required information If more than four dependents, see instructions and check here LUSTIITIC name Lizzie 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach Sch. B if required. 2a Tax-exempt interest 3a Qualified dividends credit 567-89-0123 Daughter USICI dependents 1 129,700 2a 5,790 b Taxable interest 2b 5,790 3a b Ordinary dividends 3b 4a b Taxable amount 4b 5a b Taxable amount 5b 6a b Taxable amount 6b 7 8 11,099 9 145,589 Standard Deduction for Single or Married filing separately, $12,400 Married filing jointly or 4a IRA distributions 5a Pensions and annuities 6a Social security benefits 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 9 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income 10 Adjustments to income: a From Schedule 1, line 22 10a Return to ques 10 11 Part II Adjustments to Income Educator expenses Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans 16 17 18a b Self-employed health insurance deduction Penalty on early withdrawal of savings Alimony paid Recipient's SSN 10 11 12 13 14 837 15 16 17 18a C Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 1,956x 21 Tuition and fees deduction. Attach Form 8917 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10a 22 22 2,793