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Johnelle and Latoya Henry are married and provide you the following information: Johnelle received a Form W-2 from Toys Unlimited that contained the following information:

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Johnelle and Latoya Henry are married and provide you the following information: Johnelle received a Form W-2 from Toys Unlimited that contained the following information: o Wages $45,000 o Federal income tax withheld $5,500 State income tax withheld $2,200 Long-term Investments (Latoya's co-owned business) had business income of $85,000 and business expenses of $18,000 in 2021. Latoya is a 50% owner of this company. The couple also received the following: o Lottery winnings - $5,000 o Gift from Latoya's father - $7,300 o Interest income from City of Golden bond - $550 o Interest income from Patagonia bond - $890 Latoya made $2,000 of estimated federal tax payments to cover her expected tax liability. Johnelle and Latoya incurred the following expenses for the year: Unreimbursed hospital charges - $6,500 o Unreimbursed prescription drug charges - $1,750 Unreimbrused physician charges - $2,200 o Unreimbursed prescription glasses - $150 o Laser hair treatment (so that Latoya will no longer need to shave her legs) - $2,000 o Interest payments on their primary residence (acquisition debt of $225,000) - $12,000 . o Interest expense on car loan - $1,750 o Interest expense on Visa credit card - $500 o Real estate taxes on personal residence - $8,000 o Personal property tax on their cars (based on value) - $1,000 o Cash contribution to American Red Cross - $200 o Cash contribution to United Way - $150 o Cash contribution to St. Joseph's church - $8,000 o Food for the family of Hannah Barbara (who suffered a car accident last year) - $225 o Stock transfer to the University of South Carolina (originally purchased for $1,000 in January 2006) on July 1, 2021 - $750 In the text box that follows, please include a full tax formula at the top and any supporting work afterwards so that I can award partial credit. The tax formula should be in proper form and calculate the federal income tax due/refundable when the 2021 return is filed. Please IGNORE SELF- EMPLOYMENT TAX for this problem. Johnelle and Latoya Henry are married and provide you the following information: Johnelle received a Form W-2 from Toys Unlimited that contained the following information: o Wages $45,000 o Federal income tax withheld $5,500 State income tax withheld $2,200 Long-term Investments (Latoya's co-owned business) had business income of $85,000 and business expenses of $18,000 in 2021. Latoya is a 50% owner of this company. The couple also received the following: o Lottery winnings - $5,000 o Gift from Latoya's father - $7,300 o Interest income from City of Golden bond - $550 o Interest income from Patagonia bond - $890 Latoya made $2,000 of estimated federal tax payments to cover her expected tax liability. Johnelle and Latoya incurred the following expenses for the year: Unreimbursed hospital charges - $6,500 o Unreimbursed prescription drug charges - $1,750 Unreimbrused physician charges - $2,200 o Unreimbursed prescription glasses - $150 o Laser hair treatment (so that Latoya will no longer need to shave her legs) - $2,000 o Interest payments on their primary residence (acquisition debt of $225,000) - $12,000 . o Interest expense on car loan - $1,750 o Interest expense on Visa credit card - $500 o Real estate taxes on personal residence - $8,000 o Personal property tax on their cars (based on value) - $1,000 o Cash contribution to American Red Cross - $200 o Cash contribution to United Way - $150 o Cash contribution to St. Joseph's church - $8,000 o Food for the family of Hannah Barbara (who suffered a car accident last year) - $225 o Stock transfer to the University of South Carolina (originally purchased for $1,000 in January 2006) on July 1, 2021 - $750 In the text box that follows, please include a full tax formula at the top and any supporting work afterwards so that I can award partial credit. The tax formula should be in proper form and calculate the federal income tax due/refundable when the 2021 return is filed. Please IGNORE SELF- EMPLOYMENT TAX for this

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