Question
Kai Sato is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. Kai is a manager and whose SSN is 412-34-5670. Using the following
Kai Sato is single and lives at 5411 Melbourne Avenue, Chicago, IL 60455. Kai is a manager and whose SSN is 412-34-5670. Using the following information, complete Kai's tax return for 2021: Kimber Company W-2: Gross $ 90,000 Social security tax 5,580 Medicare tax 1,305 Federal withholding tax 16,300 State withholding tax 2,700 Lee Company W-2: Gross $ 22,500 Social security tax 1,395 Medicare tax 326 Federal withholding tax 2,300 State withholding tax 600 Kai has the following itemized deductions: Real estate tax $ 7,633 Mortgage interest 8,445 Charitable contributions20 3,000 Kai has the following investments: 1099-INT $ 2,510 1099-DIV Ordinary dividends 2,389 Qualified dividends 1,963 Capital gain distribution 4,711 2020 short-term loss carryover (1,000) She also has received interest from a 1099-INT of $2,510 from Second National Bank and a dividend from a Form 1099-DIV of $2,389 in ordinary dividends received from XYZ brokerage, of which $1,963 are considered qualified dividends. Kai received a gift of 2,000 shares of FNP Incorporated stock from Aunt Jane on January 19, 2021. The basis of the shares to Aunt Jane was $4,300, and they had an FMV of $4,600 on the date of the gift. Aunt Jane purchased the stock on December 30, 2019. On June 30, 2021, Kai sold all the shares for $6,000. Kai is an avid stamp collector and purchased a rare stamp on March 20, 2011, for $4,000. Kai sold the stamp for $6,000 on April 8, 2021. Required: Prepare Form 1040 and all related schedules, forms, and worksheets for 2021. Kai does not donate to the presidential election campaign. Kai is a manager at Kimber Company and had qualifying health care coverage at all times during the tax year. Use the appropriate Tax Tables and Tax Rate Schedules.
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