Julie Anderson is a project manager and her wage is 74,300. Julie's father passed away on April 14. She inherited her fathers cottage (vacation home) in Montana and 80,000 cash. She used the 80,000 to invest in an annuity product that pays her $ 10,000 per year for the next 10 years. The first yearly payment ($10,000) was received on December 15th, 2021

Her 2021 filing status is Single.

She also has the following items for 2019: Interest income from: Capital One 200

City of San Francisco municipal bond 600

US Treasury bond. 800

Ordinary dividends from her investment in Wells Fargo $400.

All the dividends are qualified for the 15% tax rate. She also bought 50 shares Apple Inc. stock (AAPL) when the price was $100 per share. AAPL's market closing price for December 2021 is $250 per share. No shares were sold during the year.

During the year she went to Wynn Las Vegas and won $ 1,300 in a poker game. However, she lost $2,000 at another casino.

She received $4,000 insurance payout from AFLAC. The insurance policy was bought by herself.

She has the following refunds and withholdings in 2021, and took the standard deduction on her 2018 federal tax return. California state income tax refund 250

State income tax withheld from her paycheck. .4200

Federal income tax withheld from her paycheck. 9000

Social security tax paid as an employee............. 5340

She owns and lives in her house in Fresno, CA and has the following expenses:

Home mortgage loan interest 8700

Home mortgage loan points (not reported on Form 1098).. 200

Real estate tax on her house 4000

Personal-use car loan interest.. 2000

She also paid 2000 of qualified student loan interest. Ms. Anderson had a medical procedure and incurred qualified medical costs of $30,000. Her health insurance policy pays 80% of the medical cost and Julie paid the remaining 20% out of her own pocket. Julie also wanted to ask you the following questions:

Where/On which schedule can she deduct any utilities and insurance on the cottage if she rents out the vacation home for income next year?

Can she deduct any fees paid to attorneys to execute her fathers will this year?

Can she deduct any fees paid to you to prepare her tax return this year?

uestion 1

0 / 2 points

Form 1040 Line 1 _____ (W-2 wages, enter without comma or $)

Answer:

Question 2

0 / 2 points

Taxable interest on 1040 Line 2b _______

Answer:

Question 3

0 / 2 points

Ordinary dividends (1040 Line 3b) _______

Answer:

0

Question 4

0 / 2 points

Taxable amount of annuities (1040 Line 5b) ________

Answer:

Question 8

0 / 2 points

Schedule 1, Student loan interest deduction ______

Answer:

Question 9

0 / 2 points

Form 1040, Adjusted Gross Income ______

Answer:

Question 10

0 / 2 points

Schedule A Line 4 (Medical and Dental) ______

Answer:

Question 11

0 / 3 points

Schedule A Line 5a (State income tax paid) ______

Answer:

Question 13

0 / 1 point

Julie can deduct the social security tax paid as an itemized deduction on Schedule-A

Question options:

	True
	False

Question 14

0 / 2 points

Schedule A Line 7 _______

Answer:

Question 15

0 / 2 points

Schedule A Line 10 (Interest you paid) _____

Answer:

Question 17

0 / 2 points

Schedule-A Total Itemized Deductions ______

Answer:

Question 18

0 / 2 points

Form 1040 Line 12a (Standard or Itemized Deduction) ______

(The standard deduction for Single is 12550 in 2021)

Answer:

Question 19

0 / 2 points

Taxable income _______

Answer:

Question 20

0 / 3 points

Total Tax (Form 1040 Line 16), round up to the next dollar

_______

Answer:

Question 22

0 / 2 points

Where could Julie deduct the utilities and insurance on the cottage in Montana? She does not live there and plans to rent it out for income next year.

Question options:

	On Schedule-A as Itemized Deduction next year
	On Schedule-C as Deduction For AGI next year
	On Schedule-E as Deduction For AGI next year
	None of the above

Question 23

0 / 2 points

Julie can deduct the attorney fees to execute her father's will

Question options:

	True
	False