Question
For the following tax return problems, assume the taxpayer does not with to contribute to the Presidential Election Fund, unless otherwise stated. In addition, the
For the following tax return problems, assume the taxpayer does not with to contribute to the Presidential Election Fund, unless otherwise stated. In addition, the taxpayers did not receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Assume that the taxpayers did NOT receive any advance child tax credit payments during 2021. Thus, the entire child tax credit (if permitted) will be claimed on the 2021 tax return.
Elise Dubois is single, has no dependents, and lives at 55855 Ridge Drive in Lafayette, LA, 70593. Her social security number is 412-34-5670 and her date of birth is 3/15/1981.
Her W-2 contained the following information:
Wages (box 1) | $48,965.25 |
---|---|
Federal withholding (box 2) | $5,024.38 |
Social Security wages (box 3) | $48,965.25 |
Social Security withholding (box 4) | $3,035.85 |
Medicare wages (box 5) | $48,965.25 |
Medicare withholding (box 6) | $710.00 |
She has gambling winnings of $1,050 and the following expenses:
State income taxes of $3,200
Real estate property taxes $1,150
Medical expenses $6,400
Charitable cash contributions (no single contribution was more than $250) $450
Mortgage interest expense of $5,605
Personal property taxes $720
Gambling losses of $1,235
Instructions:
Prepare a Form 1040 with Schedule 1 and Schedule A for Elise using any appropriate worksheets.
Also, include your own calculation of the tax. It may be off a few dollars due to rounding, but we should be able to confirm the tax calculated by software.
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