Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the following tax return problem, assume the taxpayer does not wish to contribute to the Presidential Election Fund. In addition, the taxpayer did not

For the following tax return problem, assume the taxpayer does not wish to contribute to the Presidential Election Fund. In addition, the taxpayer did not sell, receive, exchange or otherwise acquire any financial interest in any virtual currency during the year. If the taxpayers are entitled to the child tax credit, assume they did not receive the advance child tax credit payment for 2021. They will claim the entire tax credit.

Maribel Gomez is a single taxpayer, SS# 412-34-5670, living at 5037 Circle Court, Crestview, IL 60543. Maribel is a supervisor whose 2021 shows gross wages of $94,850 and $14,500 of federal withheld. There was social security withholding of $5,881 and Medicare withholding of $1,375 and a state withholding of #2,595. Maribel did not itemize and had the following stock transactions for 2021.

Stock Shares Date Purchased Date Sold Sale Price Cost Basis

5,500 7/8/2020 9/12/2021 $15,000 $18,000

800 3/12/2021 10/21/2021 43,000 47,000

2,800 2/13/2014 10/21/2021 30,000 22,000

Maribel also has interest from a savings account with a local Neighborhood Bank of $250 and a dividend from form 1099-Div of $1,600 in ordinary dividends, of which #1,350 are considered qualified dividends.

Prepare a 2021 Form 1040 and all related schedules and forms. Assume that each box 3 of 1099-B was not checked for all sales transactions. Maribel had qualified health care coverage at all times during 2021.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Modern Auditing

Authors: William C. Boynton, Walter G. Kell

6th Edition

0471596876, 9780471596875

More Books

Students also viewed these Accounting questions

Question

Explain in brief the functions and functioning of stock exchanges.

Answered: 1 week ago

Question

Learning is a good thing for everyone. Discuss.

Answered: 1 week ago

Question

What should be the role of managers in HRD?

Answered: 1 week ago

Question

What should be the role of government in HRD?

Answered: 1 week ago