Jack and Jill Smith, married for 20 years, have a large and busy family located in Spokane, Washington. Assume the following information for 2021:

Sally, a daughter, was born on 12/30/21 (she was a surprise).

Becky, a daughter, is 16 years old at 12/31/21. She lived with the Smiths all year.

Liz, a daughter, is 18 years old at 12/31/21. She had significant medical treatments that required her to stay in Seattle for 7 months, but otherwise she lived at home in 2021. She is deemed to be totally and permanently disabled.

Sam, a legally-adopted son, is 22 years old at 12/31/21. He took classes at a University as follows: 16 credits winter of 2021, 15 credits spring of 21, and 8 credits fall of 2021. He received a $6,000 scholarship of which $3,000 was applied to the winter quarter and $3,000 to the spring quarter. He got a job in town and worked full-time in the summer and part-time in the fall. His earnings from this job were $18,000. Total cost of support for Sam in 2021 was $31,000, including tuition, room, board, transportation, etc.

Maria is 16 years old and lived with the Smiths all year. She is not a relative, but is staying with them as an exchange student from Mexico (Mexican resident). The Smiths paid for all of her support, including her tuition, room, and board. Maria has a part-time janitor job at the school and made $4,400 in earnings, which she sent back to help her family in Mexico.

Kathleen Brown, Jills mother, is 61 years old. She came across hard times so the Smiths welcomed her into their home, where she lived all year, and the Smiths paid for all of her expenses. She wont be able to draw on Social Security until she is 62 years old, so her only income was $4,000 from a small pension.

Additional information for 2021:

Jack is a CPA and works as an employee at an accounting firm. He made $120,000 salary in 2021. His employer paid $12,000 of health insurance premiums on his behalf, as well as reimbursed him $2,000 for the cost of a continuing education conference he attended (but only after he submitted an expense report with receipts, as required by the accountable plan). Because of his years of faithful service, Jacks employer awarded him a wrist watch worth $350.

Jill is a stay-at-home mom. She has a part-time home-decorating business that made $8,000 of qualifying business income (net of expenses) in 2021.

Jill contributed $2,000 to her traditional IRA.

The Smiths made $300 of interest income from the bank.

Jack sold 50 shares of ABC common stock for $8,000 that he had purchased five years ago for $3,000.

In 2021, the Smiths moved into a bigger house. The old house, in which the Smiths lived for many years, was originally purchased for $120,000. It was sold for $400,000 in 2021.

Jill won a sweepstakes prize of $5,000.

Jack inherited $20,000 from his parents, who both died in 2021.

The Smiths total itemized deductions was $25,000, consisting of charity $2,000, home mortgage interest of $14,000, deductible medical expenses of $4,000, property tax of $4,000, and sales tax of $1,000.

Jack had $5,500 of income tax withheld from his paychecks and Jill made $1,200 of estimated tax payments.

Instructions: Calculate the 2021 refund or tax due for the Smith family. Show your work by either using the Excel template or the IRS forms (Google Form 1040 etc.). Include the 2021 Form 1040 and Schedules 1 or 2 if necessary.