INCOME TAX RETURN PROBLEM
Below is the taxpayer information for Sharon and Robert Dolan. They have two children who lived with them, David (SS# 154-13-5826), age 10 (date of birth: October 11, 2012), and Sarah (SS# 155-52-3716), age 5 (date of birth: March 22, 2017). Sharon & Robert own their own home, a condominium. The family resides at 4705 Henry Hudson Parkway, Bronx, NY, 10471.
Sharon (SS# 138-09-1983, date of birth: April 2, 1971) is a manager at Chase Bank where her W2 wages was $80,000 and her federal withholdings was $11,500. Robert, (SS# 144-39-6967, date of birth: November 11, 1975), is employed at the Stratege4U Warehouse as a Consultant.
Robert's 2021 W2 wages was $67,095 and his federal withholding was $7,693.
The couples other income included dividends from Microsoft amounting to $272, dividends from Pepsi-Co amounting to $280, interest from TD Bank amounting to $135 and interest on their checking account at Bank of America of $193.
The Dolans also paid the following amounts (all of which can be proven):
1) $10,283 in mortgage interest
2) $8,555 in property taxes
3) $6,350 in tithes to CCC church
4) $2,800 charitable donation to Baruch College
5) $3,850 charitable donation to Brooklyn College
6) $717 sales tax paid
Sharon & Robert file jointly.
REQUIRED:
Please prepare the couples 2021 federal income tax return (form 1040), to reflect the couples total income, AGI, standard or total itemized deduction, tax (per the IRS table), federal withholdings, child tax credit (CTC), tax refund or liability (owe).
Fom 1040(2021) 16 Tax (soo inatructionst. Chock if any from Form/s): 1 8814 249723 17 Amount from Schedule 2, lire 3 18 Add Ines 16 and 17 . 19 Nonrefundable chld tax oredit or crodt for othar dopendents from Schodule BB12 20. Amount from Schedule 3, lire 8 21 Add Ines 19 and 20. 22 Subtract line 21 from line 18. It zero of laes, anter =0 - 23 Other taxes, including self-ertployment tax, from Sehedile 2, line 21 24. Add lnes 22 and 23 . This is your total tax 26 Federal income tax whithheld trom: a Fonm;s) W2. b Fenmaz 1009 e Cther toma (see hatructiona) d Add Ines 25a through 250. Piogu 2 26 2021 esfimaled tax payments and amount applied from 2020 retum . at that Beh. Elc. Check here if you were bom after Jamusry 1, 1998, and before Jaruary 2, 2004, and you satisfy all the other requirements for taxpayers who are at least age 18, to claim the ElC. See iratructiona b Nentaxsible combat pry election c Prior year (2019) eamed inoome 28 Refundable child tax crecit or add tional child tax credit trom Schectule 8812 29 American opportunity eredin from Form 8863 , line 8 . 30 Recovery rabate erecit. See instructions 31 Amount from Schedule 3, Ine 15 . 32. Add Ines 27 a and 28 through 31. These are your total other payments and refundable credits 33 Add Ines 25d, 25, and 32. These are your total payments 34 If Ine 33 is more than Ine 24, subtract Ine 24 from line 33 . This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here Drect daposk? b Pouting number Ses instruelerna. d Aocount number Here Filing Status single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box. person is a child but not your dependent At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1957 Are blind Spouse: Was born before January 2, 1957 is blind Dependents (see instructions): If more than four dependents, see instructions and check here (4) V if qualifies for (see instructions): Fom 1040(2021) 16 Tax (soo inatructionst. Chock if any from Form/s): 1 8814 249723 17 Amount from Schedule 2, lire 3 18 Add Ines 16 and 17 . 19 Nonrefundable chld tax oredit or crodt for othar dopendents from Schodule BB12 20. Amount from Schedule 3, lire 8 21 Add Ines 19 and 20. 22 Subtract line 21 from line 18. It zero of laes, anter =0 - 23 Other taxes, including self-ertployment tax, from Sehedile 2, line 21 24. Add lnes 22 and 23 . This is your total tax 26 Federal income tax whithheld trom: a Fonm;s) W2. b Fenmaz 1009 e Cther toma (see hatructiona) d Add Ines 25a through 250. Piogu 2 26 2021 esfimaled tax payments and amount applied from 2020 retum . at that Beh. Elc. Check here if you were bom after Jamusry 1, 1998, and before Jaruary 2, 2004, and you satisfy all the other requirements for taxpayers who are at least age 18, to claim the ElC. See iratructiona b Nentaxsible combat pry election c Prior year (2019) eamed inoome 28 Refundable child tax crecit or add tional child tax credit trom Schectule 8812 29 American opportunity eredin from Form 8863 , line 8 . 30 Recovery rabate erecit. See instructions 31 Amount from Schedule 3, Ine 15 . 32. Add Ines 27 a and 28 through 31. These are your total other payments and refundable credits 33 Add Ines 25d, 25, and 32. These are your total payments 34 If Ine 33 is more than Ine 24, subtract Ine 24 from line 33 . This is the amount you overpaid 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here Drect daposk? b Pouting number Ses instruelerna. d Aocount number Here Filing Status single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box. person is a child but not your dependent At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1957 Are blind Spouse: Was born before January 2, 1957 is blind Dependents (see instructions): If more than four dependents, see instructions and check here (4) V if qualifies for (see instructions)
