Question
Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamies social
Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamies social security number is 412-34-5670 (date of birth 6/15/1972) and Cecilias is 412-34-5671 (date of birth 4/12/1974). They provide more than half of the support of their daughter, Carmen (age 23), social security number 412-34-5672 (date of birth 9/1/1998), who is a full-time veterinarian school student. Carmen received a $3,200 scholarship covering some of her tuition at college. She was not required to perform any services to receive the scholarship. Jamie and Cecilia furnish all of the support of Maria (Jamies mother), social security number 412-34-5673 (date of birth 11/6/1951), who is age 70 and lives in a nursing home. They also have a son, Gustavo (age 4), social security number 412-34-5674 (date of birth 3/14/2017).
Jamie's W-2 contained the following information:
Federal Wages (box 1) = | $ 145,625.00 |
---|---|
Federal W/H (box 2) = | $ 15,112.35 |
Social Security wages (box 3) = | $ 142,800.00 |
Social Security W/H (box 4) = | $ 8,853.60 |
Medicare Wages (box 5) = | $ 145,625.00 |
Medicare W/H (box 6) = | $ 2,111.56 |
State Wages (box 16) = | $ 145,625.00 |
State W/H (box 17) = | $ 5,435.00 |
Other receipts for the couple were as follows:
Dividends (all qualified dividends) | $ 2,900 |
---|---|
Interest income: | |
Union Bank | $ 1,320 |
State of Idahointerest on tax refund | 22 |
City of Boise school bonds | 1,250 |
Interest from U.S. savings bonds (not used for educational purposes) | 410 |
2020 federal income tax refund received in 2021 | 2,007 |
2020 state income tax refund received in 2021 | 218 |
Idaho lottery winnings | 1,380 |
Casino slot machine winnings | 2,250 |
Gambling losses at casino | 6,500 |
Other information that the Reyeses provided for the 2021 tax year:
Mortgage interest on personal residence | $ 10,081 |
---|---|
Loan interest on fully equipped motor home | 2,810 |
Doctors fee for a face-lift for Mrs. Reyes | 8,800 |
Dentists fee for a new dental bridge for Mr. Reyes | 3,250 |
Vitamins for the entire family | 110 |
Real estate property taxes paid | 5,025 |
DMV fees on motor home (tax portion) | 1,044 |
DMV fees on family autos (tax portion) | 436 |
Doctors bills for mother | 2,960 |
Nursing home for mother | 11,375 |
Wheelchair for mother | 1,030 |
Property taxes on boat | 134 |
Interest on personal credit card | 550 |
Interest on loan to buy public school district bonds | 270 |
Cash contributions to church (all the contributions were in cash and none more than $250 at any one time) | 5,100 |
Cash contribution to man at bottom of freeway off-ramp | 25 |
Contribution of furniture to Goodwillcost basis | 4,000 |
Contribution of same furniture listed above to Goodwillfair market value | 410 |
Tax return preparation fee for 2020 taxes | 625 |
Required:
Prepare a Form 1040 and appropriate schedules for the completion of the Reyess tax return. They do not want to contribute to the presidential election campaign and do not want anyone to be a third-party designee. The Reyes have not acquired any financial interest in virtual currency last year. For any missing information, make reasonable assumptions. Use the appropriate Tax Tables and Tax Rate Schedules.
Please show me what a tax return would properly look like for year 2021
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started