Jason and Katherine Minnow filed a joint return for 2021. Jason earned 300,000 from working at Four Square, Inc. He died on Jan. 3, 2021. He also earned $90,000 from a business he owned which had $35,000 in business expenses. Katherine received $900,000 from a life insurance policy on Jason. Katherine also ran a business which had $50,000 in income and $60,000 in expenses. They incurred 15,000 in itemized deductions during the year. Ignore QBI deduction. Assume Jason's employer has withheld the required $900 in additional Medicare (he has over $200,000 in income). You will need to figure out how much additional Medicare they actually owe to see how much of a refund they get. Also assume that the limit for social security (cap is $142,800) was accounted for in Jason's wages. This will affect Jason's self employment taxes. Show all your work. Problem takes place in the United States following the current-year tax code.

What is the gross income?

What is the adjusted income?

What is their total taxable income?

What are their self-employment taxes?

What is the total tax due (refund) using the Tax Rate schedule? Assume Jason had $17,000 deducted from his pay.