Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessie's income is $848. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary Jessie's craft sales. Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) $ 130,800 18,570 1,820 750 954 $ 13,700 6,740 7,550 6,540 344 1,320 17,700 2,640 1,860 2,740 6,130 162 Travel and lodging for craft shows 2,400 Self-employment tax on Jessie's craft income 1,696 College tuition paid for Lizzie 6,120 Interest on loans to pay Lizzie's tuition 3,540 Lizzie's room and board at college 12,960 Cash contributions to the Red Cross 610 Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A. (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.) Joe's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123 1040 PG 1 Schedule 1 Schedule A Form 1040 Page 1. Form 1040 Department of the Treasury- Internal Revenue Service (99) U.S. Individual Income Tax Return 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Married filing Filing Status Single Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) jointly Check only one box. 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 Last name Your social security number Joe If joint return, spouse's first name and middle initial Last name Jessie Home address (number and street). If you have a P.O. box, see instructions. 19010 N.W. 135th Street; Apt. no. 111-11-1111 Spouse's social security number 123-45-6789 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. City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code Miami, FL 33054. Foreign country name Foreign province/state/county Foreign postal code You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Standard Deduction Someone can claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien Were born before January 2, 1956 Are blind Spouse: (2) Social security number Was born before January 2, 1956 (3) Relationship to you Is blind (4)if qualifies for (see instructions): Child tax credit Credit for other dependents Age/Blindness You: Dependents (see instructions): (1) First name Last name If more than Lizzie our dependents, See instructions and check here 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach Sch. B if 2a Tax-exempt interest required. 3a Qualified dividends 4a IRA distributions 5a Pensions and annuities 6a Social security benefits 567-89-0123 Daughter 1 130,800 2a 954 b Taxable interest 2b 2,570 b Ordinary dividends 3b 4a b Taxable amount 4b 5a b Taxable amount 5b b Taxable amount 6b Standard Deduction for- Single or Married filing separately, $12,400 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 9 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income Married filing 10 Adjustments to income: jointly or Qualifying a From Schedule 1, line 22 10a widow(er), $24,800 b Charitable contributions if you take the standard deduction. See instructions 10b Head of 7 8 8,182 9 141,552