Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

James Dangell (birthdate August 2, 1977) is a single taxpayer. Jim's earnings and withholdings as the manager of a local casino for 2021 are reported

James Dangell (birthdate August 2, 1977) is a single taxpayer. Jim's earnings and withholdings as the manager of a local casino for 2021 are reported on his Form W-2 (see separate tab). Jim received Form 1098 from the Reno Bank & Trust (see separate tab). Jim's other income includes interest on a savings account at Nevada National Bank of $12,000 (1099-INT not shown). Jim pays his ex-spouse, Sarah McLoughlin, $3,900 per month in accordance with their February 12, 2020 divorce decree. When their 12-year-old child (in the ex-wife's custody) reaches the age of 18, the payments are reduced to $2,800 per month. His ex-wife's Social Security number is 554-44-5555. In 2021, Jim purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $5,210, which exceeds the estimated amount per the IRS tables. Jim participates in a high-deductible health plan and is eligible to contribute to a health savings account. His HSA earned $75 in 2021. During the year, Jim paid the following amounts (all of which can be substantiated): Credit card interest $1,760 Auto loan interest 4,300 Auto insurance 900 Property taxes on personal residence 3,400 Contributions to HSA 2,000 Income tax preparation fee 900 Charitable contributions (all cash): Boy Scouts of America 1,200 St. Matthews Church 3,100 Nevada Democratic Party 250 Fund-raising dinner for the Reno Auto Museum 100 (value of dinner is $45) In 2021, Jim inherited over $500,000 from his Uncle Travis who died in 2021. Although Jim invested a large portion, he also contributed $121,000 cash to the newly named Travis School of Criminal Justice at the University of Reno. Required: Complete Jim's Form 1040 and Schedules 1, A and B as well Form 8889. Make realistic assumptions about any missing data. Jim had health coverage for the entire year and he does not want to contribute to the presidential election campaign. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "0". If required round any dollar amount to the nearest dollar.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Topics In Finance

Authors: Iris Claus, Leo Krippner

1st Edition

1119565162, 978-1119565161

More Books

Students also viewed these Finance questions

Question

On Fig. 10.5, identify and define an outwash plain.

Answered: 1 week ago

Question

Show the properties and structure of allotropes of carbon.

Answered: 1 week ago