I need help preparing a Tax 1040 form. Thank you!

Tax Staff, I have a project for you and your team. I need you to prepare the 2021 Form 1040 and required schedules and forms for our clients, Joseph (Joe) and Laci Gonzales. Attached you will find the 2021 tax information from our clients. . . . Please prepare the following forms/schedules: Summary workpapers in Excel showing/supporting your calculations Form 1040 1040 Schedules 1-3, if applicable 1040 Schedule A 1040 Schedule B 1040 Schedule C 1040 Schedule D 1040 Schedule E 1040 Schedule SE (complete Section A only) Form 2441 Form 4797 Form 8949 Form 8959 Form 8960 Form 8995 . . . . . Be sure to also prepare a summary workpapers to submit along with all completed tax forms. You will use the information provided to prepare summary workpapers in Excel to prepare their taxable income and tax due/refund for the tax year ended December 31, 2021. (Please show and label all your workpapers for full credit.) Then you will use your calculated information to prepare all necessary tax forms and schedules. Please note that you can ignore AMT. You may access the required forms/schedules on the IRS website at: https://www.irs.gov/forms-instructions. Please note that you may use the 2020 tax forms as the 2021 forms have not been released. Be sure you are using 2021 rates. Client Information: Joe and Laci Gonzales Filing status = Married filing jointly Qualifying children = Lola (age 2), Sam (age 4), and Charlie (age 6) 2021 Tax Information: a.) Joe is a pilot and is employed by Flyby Airlines. His W-2 provided the following information: Line 1: Wages, tips & other compensation $193,000 Line 2: Federal income tax withheld $ 25,000 b.) Joe is provided with the following fringe benefits from Flyby: health insurance premiums for a qualified plan ($6,000); group-term life insurance with a face value of $50,000 ($1,200); whole life insurance ($2,500); gym membership at 24-Hr Fitness ($2,400). Joe is also able to fly with his family at no cost. Joe estimated that value of the free flights to be $3,500 during the year. c.) Laci is self-employed and runs a bookkeeping business. The income statement is attached. d.) Joe borrowed $30,000 from Flyby in order to complete some home renovation projects. Flyby only charged Joe interest of $300. Had Joe borrowed the funds from the bank he would have paid $1,050. e.) Joe won $8,000 while gambling in Las Vegas. f.) Interest income - $250 from savings account at First Lubbock Bank; $300 from State of Texas Bond; $130 from US Treasury Bond; $1,800 from a certificate of deposit (CD); however the CD was cashed out early and a 10% penalty of $180 was assessed. g.) Dividend income - $2,750 dividends from TXT Co of which $2,500 is classified as qualified dividends. h.) In June, Joe had been an employee of Flyby for 10 years so he was awards a watch valued at $700 and $500 cash. i.) Joe and Laci owned a rental property in Port Aransas, TX. The taxpayers sold the rental property in November for $625,000. The adjusted basis in the property is $450,000. The unrecaptured Sec. 1250 portion of the gain is $84,000. Prior to the sale of the property, the taxpayers received $16,000 in rental revenue and incurred the following expenses: Property taxes - $5,400 Repairs & Maintenance - $3,200 Utilities - $2,400 Depreciation - $1,600 j.) Laci received stock in Under the Bus Corp. when her grandmother died in February. Her grandmother had purchased the stock in 1992 for $5,000. The FMV of the stock was $22,000 on the date of her death. Laci sold the sold in December for $27,000. (This transaction is not included in the table provided att.).) k.) Joe received $25,000 cash from his great-uncle has a gift. 1.) Joe paid $12,000 in alimony to a former spouse and $24,000 in child support. (Joe's children from his first marriage are claimed as dependents on their mother's tax return. The kids from his first marriage are different than those in the opening sentence. Joe has five total children, but only three qualify as his dependents.) The divorce was finalized in 2011. m.) The taxpayers sold their boat (personal-use) that they had owned for three years at a loss of ($12,000) n.) Joe and Laci won a free trip to Mexico after completing a survey outside the grocery store. The value of the trip was $9,400. o.) In September, Joe was in a car accident on his way to work. The judge ordered the other driver to pay Joe $8,500 for medical expenses, $3,500 for emotional trauma and $20,000 in punitive damages. p.) In 2020, the taxpayers were required to file a state tax return in New Mexico due to some investment property. In 2021, they received a state tax refund of $550. The taxpayers itemized on their 2020 federal income tax return. Their total itemized deductions in 2020 exceeded the standard deduction by $7,500. q.) In 2018, the taxpayers won $100,000 in the McDonald's Monopoly game. The winnings are paying out over five years ($20,000 per year). This year the couple received $21,200. r.) Laci is a limited partner (passive) in two different partnerships - X and Z. Partnership X reported her share of the current year income/loss to be ($17,000) and her basis prior to the current year loss was $14,000. Partnership Z reported her share of the current year income/loss to be $12,500 and his basis prior to the current year income was $7,000. s.) In January, Laci's father passed away. Laci was the recipient of one of his life insurance policies. The policy had a face value of $500,000. Laci elected to have the policy pay out over 20 years. Laci received a check for $26,000 in December. Laci also received his collection of rare coins valued at $10,000. Sales Price $25,000 $10,000 t.) Additionally, the couple sold the following capital assets during the year: Asset Purchased Sold Cost Basis ABC Stock 1/1/2021 7/1/2021 $18,000 DEF Stock 1/1/2008 11/20/2021 $15,000 Painting 1/1/2005 7/15/2021 $5,000 (collectible) GHI Stock 1/1/2010 9/1/2021 $18,000 JKL Stock 1/1/2015 10/1/2021 $10,000 $50,000 $30,000 $15,000 C . . . . . . . . . . u.) The taxpayers paid the following out-of-pocket expenses during the year and have proper documentation to substantiate all expenses: Doctor/hospital/dentist - $9,500 Prescription medications - $800 Over-the-counter medications - $200 Wheelchair - $150 Veterinarian's fees (non-service animal) - $700 Cosmetic surgery (elective) - $12,000 Teeth whitening - $2,500 Corrective vision surgery - $6,000 Braces (orthodontics) - $5,000 Social security tax withheld from wages - $9,500 State general sales tax (per IRS table) - $2,200 Real estate tax (investment property) - $2,500 Estimated tax payments (federal) - $6,000 Real estate tax (primary residence) - $6,200 Credit card interest (personal) - $400 Home mortgage interest - $7,500 Auto loan interest (personal use) - $1,500 Cash paid directly to family in need - $500 Cash to Texas Tech University for scholarships - $8,500 Cash to political campaign - $2,500 Household items (clothes, furniture), which are ordinary income property, given to American Red Cross - FMV = $400; Original Cost = $2,000 Painting (capital gain property) given to TTU museum; Museum hung painting. FMV = $8,000; Original cost = $1,000 Joe serves lunch every Thursday at a soup kitchen. Total mileage driven to and from soup kitchen was 357 miles. (SMR = $0.14 per mile) Joe's estimated his time to be valued at $75 per hour. Total hours for the year were 52 hours. The couple bid (silent auction) on a fishing trip package at the United Way gala. The couple paid $10,000 for the trip which had a fair market value of $8,800. Gambling losses - $5,000 Daycare cost for Sam and Lola - $8,250 Funeral expenses for Laci's father - $6,200 . . . . . v.) Laci is attending Texas Tech University to earn her master's degree in accounting. She is in her fifth year of higher education. Her tuition and required course expenses totaled $8,500. She received a scholarship from the School of Accounting for $1,500. She did not have to perform any services in order to receive the scholarship Scarlet & Black Bookkeeping Services Income Statement For the Year Ended December 31, 2021 Revenue $180,000.00 $1,950.00 $275.00 Expenses Professional insurance Training Seminar Travel to Clients: Lodging Meals from restaurants Airfare Fixed Asset - IT Equipment Fixed Asset - Furniture Wages paid to Employee Office utilities Payroll Tax (employer portion) Owner distribution (draw) Office rent Professional expense (attorney fee) Office supplies Late filing penalty Charitable contributions (cash) Contribution to political candidate Total Expenses $3,125.00 $1,250.00 $1,800.00 $4,500.00 $6,850.00 $48,000.00 $9,000.00 $3,675.00 $70,000.00 $26,400.00 $1,300.00 $1,700.00 $225.00 $800.00 $350.00 $181,200.00 Net Income ($1,200.00) Additional Information: Drove 1,800 miles to meet with clients Tax Staff, I have a project for you and your team. I need you to prepare the 2021 Form 1040 and required schedules and forms for our clients, Joseph (Joe) and Laci Gonzales. Attached you will find the 2021 tax information from our clients. . . . Please prepare the following forms/schedules: Summary workpapers in Excel showing/supporting your calculations Form 1040 1040 Schedules 1-3, if applicable 1040 Schedule A 1040 Schedule B 1040 Schedule C 1040 Schedule D 1040 Schedule E 1040 Schedule SE (complete Section A only) Form 2441 Form 4797 Form 8949 Form 8959 Form 8960 Form 8995 . . . . . Be sure to also prepare a summary workpapers to submit along with all completed tax forms. You will use the information provided to prepare summary workpapers in Excel to prepare their taxable income and tax due/refund for the tax year ended December 31, 2021. (Please show and label all your workpapers for full credit.) Then you will use your calculated information to prepare all necessary tax forms and schedules. Please note that you can ignore AMT. You may access the required forms/schedules on the IRS website at: https://www.irs.gov/forms-instructions. Please note that you may use the 2020 tax forms as the 2021 forms have not been released. Be sure you are using 2021 rates. Client Information: Joe and Laci Gonzales Filing status = Married filing jointly Qualifying children = Lola (age 2), Sam (age 4), and Charlie (age 6) 2021 Tax Information: a.) Joe is a pilot and is employed by Flyby Airlines. His W-2 provided the following information: Line 1: Wages, tips & other compensation $193,000 Line 2: Federal income tax withheld $ 25,000 b.) Joe is provided with the following fringe benefits from Flyby: health insurance premiums for a qualified plan ($6,000); group-term life insurance with a face value of $50,000 ($1,200); whole life insurance ($2,500); gym membership at 24-Hr Fitness ($2,400). Joe is also able to fly with his family at no cost. Joe estimated that value of the free flights to be $3,500 during the year. c.) Laci is self-employed and runs a bookkeeping business. The income statement is attached. d.) Joe borrowed $30,000 from Flyby in order to complete some home renovation projects. Flyby only charged Joe interest of $300. Had Joe borrowed the funds from the bank he would have paid $1,050. e.) Joe won $8,000 while gambling in Las Vegas. f.) Interest income - $250 from savings account at First Lubbock Bank; $300 from State of Texas Bond; $130 from US Treasury Bond; $1,800 from a certificate of deposit (CD); however the CD was cashed out early and a 10% penalty of $180 was assessed. g.) Dividend income - $2,750 dividends from TXT Co of which $2,500 is classified as qualified dividends. h.) In June, Joe had been an employee of Flyby for 10 years so he was awards a watch valued at $700 and $500 cash. i.) Joe and Laci owned a rental property in Port Aransas, TX. The taxpayers sold the rental property in November for $625,000. The adjusted basis in the property is $450,000. The unrecaptured Sec. 1250 portion of the gain is $84,000. Prior to the sale of the property, the taxpayers received $16,000 in rental revenue and incurred the following expenses: Property taxes - $5,400 Repairs & Maintenance - $3,200 Utilities - $2,400 Depreciation - $1,600 j.) Laci received stock in Under the Bus Corp. when her grandmother died in February. Her grandmother had purchased the stock in 1992 for $5,000. The FMV of the stock was $22,000 on the date of her death. Laci sold the sold in December for $27,000. (This transaction is not included in the table provided att.).) k.) Joe received $25,000 cash from his great-uncle has a gift. 1.) Joe paid $12,000 in alimony to a former spouse and $24,000 in child support. (Joe's children from his first marriage are claimed as dependents on their mother's tax return. The kids from his first marriage are different than those in the opening sentence. Joe has five total children, but only three qualify as his dependents.) The divorce was finalized in 2011. m.) The taxpayers sold their boat (personal-use) that they had owned for three years at a loss of ($12,000) n.) Joe and Laci won a free trip to Mexico after completing a survey outside the grocery store. The value of the trip was $9,400. o.) In September, Joe was in a car accident on his way to work. The judge ordered the other driver to pay Joe $8,500 for medical expenses, $3,500 for emotional trauma and $20,000 in punitive damages. p.) In 2020, the taxpayers were required to file a state tax return in New Mexico due to some investment property. In 2021, they received a state tax refund of $550. The taxpayers itemized on their 2020 federal income tax return. Their total itemized deductions in 2020 exceeded the standard deduction by $7,500. q.) In 2018, the taxpayers won $100,000 in the McDonald's Monopoly game. The winnings are paying out over five years ($20,000 per year). This year the couple received $21,200. r.) Laci is a limited partner (passive) in two different partnerships - X and Z. Partnership X reported her share of the current year income/loss to be ($17,000) and her basis prior to the current year loss was $14,000. Partnership Z reported her share of the current year income/loss to be $12,500 and his basis prior to the current year income was $7,000. s.) In January, Laci's father passed away. Laci was the recipient of one of his life insurance policies. The policy had a face value of $500,000. Laci elected to have the policy pay out over 20 years. Laci received a check for $26,000 in December. Laci also received his collection of rare coins valued at $10,000. Sales Price $25,000 $10,000 t.) Additionally, the couple sold the following capital assets during the year: Asset Purchased Sold Cost Basis ABC Stock 1/1/2021 7/1/2021 $18,000 DEF Stock 1/1/2008 11/20/2021 $15,000 Painting 1/1/2005 7/15/2021 $5,000 (collectible) GHI Stock 1/1/2010 9/1/2021 $18,000 JKL Stock 1/1/2015 10/1/2021 $10,000 $50,000 $30,000 $15,000 C . . . . . . . . . . u.) The taxpayers paid the following out-of-pocket expenses during the year and have proper documentation to substantiate all expenses: Doctor/hospital/dentist - $9,500 Prescription medications - $800 Over-the-counter medications - $200 Wheelchair - $150 Veterinarian's fees (non-service animal) - $700 Cosmetic surgery (elective) - $12,000 Teeth whitening - $2,500 Corrective vision surgery - $6,000 Braces (orthodontics) - $5,000 Social security tax withheld from wages - $9,500 State general sales tax (per IRS table) - $2,200 Real estate tax (investment property) - $2,500 Estimated tax payments (federal) - $6,000 Real estate tax (primary residence) - $6,200 Credit card interest (personal) - $400 Home mortgage interest - $7,500 Auto loan interest (personal use) - $1,500 Cash paid directly to family in need - $500 Cash to Texas Tech University for scholarships - $8,500 Cash to political campaign - $2,500 Household items (clothes, furniture), which are ordinary income property, given to American Red Cross - FMV = $400; Original Cost = $2,000 Painting (capital gain property) given to TTU museum; Museum hung painting. FMV = $8,000; Original cost = $1,000 Joe serves lunch every Thursday at a soup kitchen. Total mileage driven to and from soup kitchen was 357 miles. (SMR = $0.14 per mile) Joe's estimated his time to be valued at $75 per hour. Total hours for the year were 52 hours. The couple bid (silent auction) on a fishing trip package at the United Way gala. The couple paid $10,000 for the trip which had a fair market value of $8,800. Gambling losses - $5,000 Daycare cost for Sam and Lola - $8,250 Funeral expenses for Laci's father - $6,200 . . . . . v.) Laci is attending Texas Tech University to earn her master's degree in accounting. She is in her fifth year of higher education. Her tuition and required course expenses totaled $8,500. She received a scholarship from the School of Accounting for $1,500. She did not have to perform any services in order to receive the scholarship Scarlet & Black Bookkeeping Services Income Statement For the Year Ended December 31, 2021 Revenue $180,000.00 $1,950.00 $275.00 Expenses Professional insurance Training Seminar Travel to Clients: Lodging Meals from restaurants Airfare Fixed Asset - IT Equipment Fixed Asset - Furniture Wages paid to Employee Office utilities Payroll Tax (employer portion) Owner distribution (draw) Office rent Professional expense (attorney fee) Office supplies Late filing penalty Charitable contributions (cash) Contribution to political candidate Total Expenses $3,125.00 $1,250.00 $1,800.00 $4,500.00 $6,850.00 $48,000.00 $9,000.00 $3,675.00 $70,000.00 $26,400.00 $1,300.00 $1,700.00 $225.00 $800.00 $350.00 $181,200.00 Net Income ($1,200.00) Additional Information: Drove 1,800 miles to meet with clients