Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamie's social security number is 412-34-5670 (date of birth 6/15/1972) and Cecilia's 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 (Jamie's 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) = Federal W/H (box 2) = Social Security wages (box 3) = Social Security W/H (box 4) = Medicare Wages (box 5) = Medicare W/H (box 6) = State Wages (box 16) = State W/H (box 17) = Other receipts for the couple were as follows: Dividends (all qualified dividends) Interest income: Union Bank State of Idaho-interest on tax refund City of Boise school bonds $ 145,625.00 $ 15,112.35 $ 142,800.00 $ 8,853.60 $ 145,625.00 $ 2,111.56 $ 145,625.00 $ 5,435.00 Interest from U.S. savings bonds (not used for educational purposes) 2020 federal income tax refund received in 2021 2020 state income tax refund received in 2021 Idaho lottery winnings Casino slot machine winnings Gambling losses at casino $ 2,900 22 $ 1,320 1,250 410 2,007 218 1,380 2,250 6,500 Other information that the Reyeses provided for the 2021 tax year: Mortgage interest on personal residence Loan interest on fully equipped motor home Doctor's fee for a face-lift for Mrs. Reyes Dentist's fee for a new dental bridge for Mr. Reyes Vitamins for the entire family Real estate property taxes paid DMV fees on motor home (tax portion) DMV fees on family autos (tax portion) Doctors' bills for mother Nursing home for mother Wheelchair for mother $ 10,081 2,810 8,800 3,250 110 5,025 1,044 436 2,960 11,375 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 Contribution of furniture to Goodwill-cost basis 25 Contribution of same furniture listed above to Goodwill-fair market value Tax return preparation fee for 2020 taxes 4,000 410 625 Required: Prepare a Form 1040 and appropriate schedules for the completion of the Reyes's 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. Note: List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Enter the required information in the Dependents section in a chronological order of "Dependent's social security number". Input all the values as positive numbers unless otherwise stated in the forms. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount. Do not skip rows while entering in Deductions section of Form 1040 PG1 and in Interest section of Schedule B. Form 1040 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return 2021 Single Married filing jointly OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status Check only one box. Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) 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 person is a child but not your dependent. Your first name and middle initial Jamie If joint return, spouse's first name and middle initial Cecilia Home address (number and street). If you have a P.O. box, see instructions. 5677 Apple Cove Road City, town, or post office. If you have a foreign address, also complete spaces below. Foreign country name Boise, ID 83722 Foreign province/state/county Last name Reyes Last name Reyes Apartment number Foreign postal code Your social security number (Enter as xxx-XX-XXXX) 412-34-5670 Spouse's social security number (Enter as xxx-XX-XXXX) 412-34-5671 Presidential Election Campaign. Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse At any time during 2021, did you receive, sell, send, exchange, or otherwise acquire 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 Dependents You: Were born before January 2, 1957 Are blind Spouse: Was born before January 2, 1957 Is blind (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): If more than four dependents, see instructions and check here (1) First name Last name (Enter as xxx-xXX-XXXX) Child tax credit Credit for other dependents Carmen Maria Reyes 412-34-5672 Reyes Gustavo Reyes 412-34-5673 Daughter Grandparent 412-34-5674 Son 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 145,843 Attach Schedule B if 2a Tax-exempt interest 2a 22 b Taxable interest 2b 2,570 required. 3a Qualified dividends 3a 2,900 b Ordinary dividends 3b 0 4a IRA distributions 5a Pensions and annuities 4a Ob Taxable amount 4b 0 5a 0b Taxable amount 5b 0 4 6a Social security benefits 6a 0b Taxable amount 6b 0 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 7 0 8 Other income from Schedule 1, line 10 8 Standard Deduction for- - Single or Married filing separately, $12,550 - Married filing jointly or Qualifying widow(er), $25,100 - Head of household, $18,800 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income c Add lines 12a and 12b. -If you checked any 13 Qualified business income deduction from Form 8995 or Form 8995-A box under Standard Deduction, see 14 Add lines 12c and 13 9 148,413 10 Adjustments to income from Schedule 1, line 26 10 11 Subtract line 10 from line 9. This is your adjusted gross income 11 148,413 12a Standard deduction or itemized deductions (from Schedule A) 12a b Charitable contributions if you take the standard deduction (see instructions) 12b 12c 0 13 14 0 instructions. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL.2022 McGraw-Hill Education. Form 1040 (2021) Form 1040 (2021) If you have a qualifying child, attach Schedule EIC. Jamie Reyes 16 Tax (see instructions). Check if any from Form(s): 17 Amount from Schedule 2, line 3 Cecilia Reyes 412-34-5670 Page 2 (1) 8814 (2) 4972 16 17 18 0 19 20 21 0 22 23 24 0 18 Add lines 16 and 17 19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812 20 Amount from Schedule 3, line 8 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or less, enter -0- 23 Other taxes, including self-employment tax, from Schedule 2, line 21 24 Add lines 22 and 23. This is your total tax 25 Federal income tax withheld from: a Form(s) W-2 b Form(s) 1099 c Other forms (see instructions) d Add lines 25a through 25c 26 2021 estimated tax payments and amount applied from 2020 return 25a 25b 25c 25d 0 26 27a Earned income credit (EIC) 27a Check here if you had not reached the age of 19 by December 31, 2021, and satisfy all other requirements for claiming the EIC. See instructions b Nontaxable combat pay election 27b c Prior year (2019) earned income 27c 28 Refundable child tax credit or additional child tax credit from Schedule 8812 28 29 American opportunity credit from Form 8863, line 8 29 30 Recovery rebate credit. See instructions 30 24 Amment from Dahodila 2 line 4C 24 Refund 31 Amount from Schedule 3, line 15 32 Add lines 27a and 28 through 31. These are your total other payments and refundable credits 33 Add lines 25d, 26, and 32. These are your total payments 34 If line 33 is more than line 24, subtract line 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 Direct deposit? See instructions. b Routing number c Type: d Account number 36 Amount of line 34 you want applied to your 2022 estimated tax 37 Amount you owe. Subtract line 33 from line 24. For details on how to pay, see instructions Amount You Owe 38 Estimated tax penalty (see instructions) Third Party Do you want to allow another person to discuss this return with the IRS? See instructions Designee Designee's name Phone no. Checking 31 32 0 33 0 34 35a Savings 36 37 38 Yes. Complete below. No Personal identification number (PIN) Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Spouse's signature. If a joint return, both must sign. Date Your occupation Spouse's occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Paid Preparer Use Only Phone no. Preparer's name Firm's name Email address Preparer's signature Date PTIN Phone no. Check if: Self-employed SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040, 1040-SR, or 1040-NR Additional Income and Adjustments to Income Check my work OMB No. 1545-1 2021 Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information. Attachment Sequenc Your social security 412-34-567 Jamie Reyes Cecilia Reyes Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 7 Farm income or (loss). Attach Schedule F Unemployment compensation 8 Other income: a Net operating loss b Gambling income c Cancellation of debt d Foreign earned income exclusion from Form 2555 e Taxable Health Savings Account distribution of Alaska Permanent Fund dividends g Jury duty pay h Prizes and awards 8a 0 8b 3,630 8c 8d 8e 8f 8g 8h 1 2a 3 4 5 6 7 i Activity not engaged in for profit income j Stock options k Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property I Olympic and Paralympic medals and USOC prize money (see instructions) m Section 951(a) inclusion (see instructions) In Section 951A(a) inclusion (see instructions) o Section 461 (1) excess business loss adjustment p Taxable distributions from an ABLE account (see instructions) z Other income. List type and amount Total other income. Add lines 8a through 8z 81 8j 8k 81 8m 8n 80 8p 8z 9 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELE DO NOT USE THIS FORM FOR FAX FILINGS Schedule 1 (Form SCHEDULE A (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on Form 1040 or 1040-SR Reyes Itemized Deductions Go to www.irs.gov/Schedule A for instructions and the latest information. Attach to Form 1040 or 1040-SR. Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Cecilia Reyes OMB No. 1545-0074 2021 Attachment Sequence No. 07 Your social security number 412-34-5670 Jamie Medical and Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) Dental Expenses 2 Enter amount from Form 1040 or 1040-SR, line 11. 3 Multiply line 2 by 7.5% (0.075) 2 1 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- 4 0 Taxes You Paid 5 State and local taxes. a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c 5a 5b 5c 5d 0 e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 5e 6 Other taxes. List type and amount 7 Add lines 5e and 6 CO 6 Interest You Paid Caution: Your mortgage interest deduction may be limited (see instructions). 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 8a 7 0 8b c Points not reported to you on Form 1098. See instructions for special rules 8c d Mortgage insurance premiums (see instructions) 8d e Add lines 8a through 8d 8e 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines 8e and 9 9 10 0 Gifts to Charity Caution: If you made a gift and got a benefit for it, see instructions. 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions 11 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 12 13 Carryover from prior year 13 14 Add lines 11 through 13 14 0 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). 15 Theft Losses Attach Form 4684 and enter the amount from line 18 of that form. See instructions Other Itemized Deductions 16 Other from list in instructions. List type and amount 16 Total Itemized Deductions 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 12a 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box 17 For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELE DO NOT USE Schedule A (Form 1040) 2021 0 SCHEDULE 8812 (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on return Check my work Credits for Qualifying Children and Other Dependents Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Schedule 8812 for instructions and the latest information. Cecilia Reyes OMB No. 1545-0074 2021 Attachment Sequence No. 47 Your social security number 412-34-5670 S Jamie Part I-A Reyes Child Tax Credit and Credit for Other Dependents 1 Enter the amount from line 11 of your Form 1040, 1040-SR, or 1040-NR 2a Enter income from Puerto Rico that you excluded b Enter the amounts from lines 45 and 50 of your Form 2555 c Enter the amount from line 15 of your Form 4563 d Add lines 2a through 2c 3 Add lines 1 and 2d 4a Number of qualifying children under age 18 with the required social security number b Number of children included on line 4a who were under age 6 at the end of 2021 c Subtract line 4b from line 4a 5 If line 4a is more than zero, enter the amount from the Line 5 Worksheet; otherwise, enter -0- 6 Number of other dependents, including any qualifying children who are not under age 18 or who do not have the required social security number Caution: Do not include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident alien. Also, do not include anyone you included on line 4a. 7 Multiply line 6 by $500 8 Add lines 5 and 7 9 Enter the amount shown below for your filing status. Married filing jointly-$400,000 -All other filing statuses-$200,000 2a 2b 2c 2d 4a 4b 4c 3 7 8 Check my work 10 Subtract line 9 from line 3. If zero or less, enter -0- If more than zero and not a multiple of $1,000, enter the next multiple of $1,000. For example, if the result is $425, enter $1,000; if the result is $1,025, enter $2,000, etc. 11 Multiply line 10 by 5% (0.05) 12 Subtract line 11 from line 8. If zero or less, enter -0- 13 Check all the boxes that apply to you (or your spouse if married filing jointly). A Check here if you (or your spouse if married filing jointly) have a principal place of abode in the United States for more than half of 2021 B Check here if you (or your spouse if married filing jointly) are a bona fide resident of Puerto Rico for 2021 Filers Who Check a Box on Line 13 Part I-B Caution: If you did not check a box on line 13, do not complete Part I-B; instead, skip to Part I-C. 14a Enter the smaller of line 7 or line 12 b Subtract line 14a from line 12 c If line 14a is zero, enter -0-; otherwise, enter the amount from the Credit Limit Worksheet A d Enter the smaller of line 14a or line 14c e Add lines 14b and 14d f Enter the aggregate amount of advance child tax credit payments you (and your spouse if filing jointly) received for 2021. See your Letter(s) 6419 for the amounts to include on this line. If you are missing Letter 6419, see the instructions before entering an amount on this line Caution: If the amount on this line doesn't match the aggregate amounts reported to you (and your spouse if filing jointly) on your Letter(s) 6419, the processing of your return will be delayed. g Subtract line 14f from line 14e. If zero or less, enter -0- on lines 14g through 14i and go to Part III h Enter the smaller of line 14d or line 14g. This is your credit for other dependents. Enter this amount on line 19 of your Form 1040, 1040-SR, or 1040-NR i Subtract line 14h from line 14g. This is your refundable child tax credit. Enter this amount on line 28 of your Form 1040, 1040-SR, or 1040-NR For Paperwork Reduction Act Notice, see your tax return instructions. THIS FORMIS A SIMI Cat. No. 59761M 10 11 12 14a 14b 14c 14d 14e 14f 14g 14h 14i Schedule 8812 (Form 1040) 202 Qualified Dividends and Capital Gain Tax Worksheet-Line 12a Before you begin: See the earlier instructions for line 16 to see if you can use this worksheet to figure your tax. Before completing this worksheet, complete Form 1040 or 1040-SR through line 15. If you don't have to file Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 7. Name(s) shown on Form 1040 Jamie Reyes Cecilia Reyes Check my work OMB No. 1545-0074 2021 Attachment Sequence No. 07 Your social security number (Enter as xxx-XX-XXXX) 412-34-5670 1. Enter the amount from Form 1040 or 1040-SR, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet 2. Enter the amount from Form 1040 or 1040-SR, line 3a* 3. Are you filing Schedule D?* Yes. Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or 16 is blank or a loss, enter -0- 2. 3. No. Enter the amount from Form 1040 or 1040-SR, line 7. 4. Add lines 2 and 3 4. 0 5. 5. Subtract line 4 from line 1. If zero or less, enter -0- 6. Enter: $40,400 if single or married filing separately, $80,800 if married filing jointly or qualifying widow(er), $54,100 if head of household. 7. Enter the smaller of line 1 or line 6 8. Enter the smaller of line 5 or line 7 9. Subtract line 8 from line 7. This amount is taxed at 0% 10. Enter the smaller of line 1 or line 4 11. Enter the amount from line 9 12. Subtract line 11 from line 10 6. 7. 8. 9. 0 10. 11. 12 13. Enter: $445,850 if single, $250,800 if married filing separately, $501,600 if married filing jointly or qualifying widow(er), $473,750 if head of household. 14. Enter the smaller of line 1 or line 13 15. Add lines 5 and 9 16. Subtract line 15 from line 14. If zero or less, enter -0- 17. Enter the smaller of line 12 or line 16 18. Multiply line 17 by 15% (0.15) 19. Add lines 9 and 17 20. Subtract line 19 from line 10 21. Multiply line 20 by 20% (0.20) 13. 14. 15. 0 16. 0 17. 18. 19. 0 20. 0 22. Figure the tax on the amount on line 5. If the amount on line 5 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 5 is $100,000 or more, use the Tax Computation Worksheet 23. Add lines 18, 21, and 22 27 21. 24. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to figure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet 25 Tax on all taxable income. Enter the smaller of line 23 or 24. Also include this amount on the entry space on Form 1040 or 1040-SR, line 16. If you are filing Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet *If you are filing Form 2555, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. 4040 Instructions 22. 23. 0 24. 25. 2021