How do I prepare the following 2021 tax forms for Brian and Corinne Lee? Form 1040, Schedule 1, Schedule 2, Schedule 3, Schedule A, Schedule B, Schedule SE?
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated In the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial Interest In any virtual currency during the year. Brian and Corrine Lee are married taxpayers filing jointly. They live in the home they own, located at 3301 Pacific Coast Highway. Laguna Beach, CA 92651. Brian is an optometrist who owns his business, Corrine is a social worker for Orange County. They have two sons, Brady and Hank. During their trip to China last year, they fell in love with a beautiful one-year-old girl from an orphanage near Shanghai and are In the process of adopting her The social security numbers of the four current members of their household are 412- 34-5670 for Brian, 412-34-5671 for Corrine, 412-34-5672 for Brady, and 412-34-5673 for Hank Their birth dates are as follows Brian, 5/20/1976, Corrine, 7/23/1976; Brady, 9/1/2009, and Hank, 10/12/2011. The following are Brian's Income and expense information from his business and Corrine's W-2 from Orange County Brian's optometrist office income and expenses for the current year Gross income $ 260,080 Cost of goods sold (Beginning inventory $45,090; Purchases $63,060; Ending inventory $20,090) cost method used to value closing inventory 88, 080 Advertising 5,060 Wages 32,060 office rent 9, 600 other 2, 100 The Lees also made $25,000 in federal estimated tax payments during the year on the applicable due dates. The Form W-2 Corrine received from Orange County contained this Information: Wages (box 1) = $ 76, 925.04 Federal W/H (box 2) $ 9,956.70 Social security wages (box 3) $ 76,925.04 Social security W/H (box 4) $ 4, 769. 35 Medicare wages (box 5) = $ 76, 925.04 Medicare W/H (box 6) = $ 1, 115.41 State income taxes (box 17) = $ 2,944.89 In addition, the Lees had the following income and expenses during the year Income Interest from CDS at Pacific Coast Bank $ 3, 500 Expenses Mortgage interest paid to PC Bank for their home $ 29, 500 Property taxes paid on their residence 7, Bee Adoption expenses (fees, court costs, and attorney's fees) 8, 850 Child care costs at LB Parks and Recreations (550 Main St, Laguna Beach, CA 92651, EIN 94-3344556) after-school program for Hank 3, 506 Prepare the Lees' federal tax return. Use Form 1040, Schedule A, Schedule B, Schedule C, and any additional appropriate schedules or forms they may need for credits. Do not complete Form 4562 (with Schedule C). (Assume no AMT although it may apply, Form 6251 or the AMT calculation is not required.) For any missing information, make reasonable assumptions. Assume that Brian follows cash basis of accounting Use the appropriate Phaseout Schedule, Tax Tables or Tax Rate Schedules. Note: List the names of the taxpayers In the order In which they appear In the problem. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount. Do not skip rows, while entering In Dependents section of Form 1040 PG1. Scroll down to access Schedule C, 8812, Forms 8995, and 2441 shown separately