Derrick and Ani Jones are married taxpayers, filing jointly, and have a son named Jackson. They live at 474 Rustic Drive, Spokane, WA 99201. Ani works as the director of information systems at Washington Community College District (WCCD). Derrick is a stay-at-home dad. Their SS#s Derrick 412-34-5670 (DOB 06/07/1981), Ani 412-34-5671 (DOB 03/20/1982). Their son, Jackson SS# 412-34-5672 (DOB 10/10/2014). Jones owns their own home and paid $15,000 in mortgage interest during the year to Chase Bank and property taxes of #3,200. Assume they have no other deductible expenses.

Anis W-2 information

• Wages (Box 1) = $79,002.50
• Federal W/H (Box 2) = $7,000.14
• Social Security Wages (Box 3) = $79,002.50
• Social security W/H (Box 4) = $4,898.16
• Medicare wages = $79,002.50
• Medicare W/H = $1,145.54

In addition, The Jones owns a small, four-unit rental at 12345 Rainbow Way, Sultan, WA 98294. The rental was purchased and placed in service on 07/01/2008 and was rented for the entire year. The following income and expense information relates to the rental activity. For this return, do not consider passive activity rules or limitations.

• Rental income $24,000
• Real estate taxes $2,000
• State sales tax $1,349
• Utilities $1,500
• Mortgage interest $3,800
• Depreciation $7,200
• Repairs and Maintenance $1,300

Prepare the Joneses federal tax return for 2021. Use form 1040

Actions

, Schedule A, Schedule E, and other appropriate schedules. Assume they do not qualify for any credits other than the child tax credit. Using software will automatically calculate the child tax credit (CTC). The taxpayers had qualifying health care coverage at all times during 2021. For any missing information, make reasonable assumptions.