Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following is a list of information for Robert and Amy Pax for the tax year 2021. Robert and Amy are married and have three children,

Following is a list of information for Robert and Amy Pax for the tax year 2021. Robert and Amy are married and have three children, Alice, Bryson, and Carl. They live atnc 500 Main Street, Phoenix, AZ 85021.

Robert is a counselor working for a company called Healthy U. Amy works part-time as a pharmacy tech at Walgreens.

Here are their social security numbers and birthdates:

Name

Social Security Number

Birthdate

Robert

123-56-3214

1/15/1988

Amy

564-52-6363

2/23/1990

Alice

558-99-3336

5/5/2013

Bryson

120-33-4566

6/23/2015

Carl

880-11-2323

8/9/2017

Forms:

Tax Year: 2021
Form w-2

Employer FEIN/SSN: 77-328560
State WH ID Number: 77328560
Employee Name Amy Pax
Employer Name: Walgreens
Employer Street Address: 200 N. Central
City: Phoenix State: AZ
Zip Code: 85015
W-2 Box Total
(1) Wages, Tips, Other - $37,449.00
(2) Fed. Income Tax Withheld - $3,950.00
(3) Social Security Wages - $38,000.00
(4) Social Security Tax Withheld - $2,356.00
(5) Medicare Wages and Tips - $38,000.00
(6) Medicare Tax Withheld - $551.00
(12D) 401K - $1,500.00
(16) State Wages, Tips, etc. - $38,000.00
(17) State Income Tax - $1,088.00

Tax Year: 2021
Form W-2

Employer FEIN/SSN: 86-025431
State WH ID Number: 86-025431
Employee Name Robert Pax

Employee Social: 123-56-3214
Employer Name: Health U
Employer Street Address: 500 Down Street
City: Phoenix State: AZ
Zip Code: 85021
W-2 Box Total
(1) Wages, Tips, Other - $55,000.00
(2) Fed. Income Tax Withheld - $2,300.00
(3) Social Security Wages - $55,000.00
(4) Social Security Tax Withheld - $3,410.00
(5) Medicare Wages and Tips - $55,000.00
(6) Medicare Tax Withheld - $797.50

(16) State Wages, Tips, etc. - $55,000.00
(17) State Income Tax - $900.00

Form 1098

Lender's TIN: 67-123456

Borrower's TIN: 123-56-3214

Lender's address: PO Box 8068

Virginia Beach, VA 23450

Box 1: 8,500

Box 5: 2,200

Key data to enter for the return:

Eyeglasses and Doctor visit for Alice $200

Orthodontic work for Bryson to correct a congenital defect $6,000

State income taxes paid with last year’s tax return $100

Property taxes on home $2,600

Property taxes on automobile $650

Interest on credit cards $300

Cash contribution to church $1,500

In addition to the above, on September 17, Robert and Amy donate some Beta Trader, Inc. stock to Lakeville Community College. Beta Trader, Inc. is publicly traded. The FMV of the stock on the date of the contribution is $1,000. Robert and Amy had purchased the stock on November 7, 2004 for $300.

Compute Robert and Amy’s income tax liability for 2021 using Form 1040, Schedules A and B, and Form 8283, if necessary.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Solution To compute Robert and Amys income tax liability for 2021 we will need to use Form 1040 Sche... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Pearsons Federal Taxation 2023 Comprehensive

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse

36th Edition

9780137840656

More Books

Students also viewed these Finance questions

Question

Describe the major elements of employee compensation

Answered: 1 week ago