Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. a. Ken won $1,660 in an illegal game of poker (the game was played in Utah, where gambling is illegal). b. Ken sold 1,460 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share. c. Ken received $29,600 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $248,640. d. Ken received $14,150 in disability benefits for the year. He purchased the disability insurance policy last year. e. Ken decided to go back to school to learn about European history. He received a $960 cash scholarship to attend. He used $530 to pay for his books and tuition, and he applied the rest toward his new car payment. f. Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken as a gift from Mike to Ken. Ken received the check on December 30 in the amount of $1,790. g. Ken received a $840 refund of the $4,060 in state income taxes his employer withheld from his pay last year. Ken claimed $13,060 in itemized deductions last year (the standard deduction for a single filer was $12,550). h. Ken received $34,600 of interest from corporate bonds and money market accounts. IRS Use Only-Do not write or staple in this space. Form 1040 Department of the Treasury- Internal Revenue Service (99) U.S. Individual 2021 OMB No. 1545-0074 Income Tax Return Married fing Single Married filing separately (MFS) Head of household (HOH) jointly Filing Status Qualifying widow(er) (QW) 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. Check only one box. Your first name and middle initial Last name If joint return, spouse's first name and middle initial Last name Your social security number Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions.. Apt. no. City, town, or post office. If you have a foreign address, also complete spaces below State ZIP code Foreign country name Foreign province/state/county Foreign postal code At any time during 2021, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? 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. You Spouse Yes No Standard Deduction Someone can claim You as a dependent Your spouse as a dependent Age/Blindness Dependents You: (see instructions) Spouse itemizes on a separate retum or you were a dual-status alon Were born before January 2, 1967 Are blind (2) Social security number Spouse: Was born before January 2, 1957 (3) Relationship to you Is blind (4)if qualifies for (see instructions): (1)First name Last name Child tax credit Credit for other dependents If more than fr Aanandante Was born before January 2, 1957 (4)if qualifies for Child tax credit Is blind (see instructions): Credit for other dependents Age/Blindness You: Dependents Were born before January 2, 1957 (see instructions): Are blind (2) Social security number Spouse: (3) Relationship to you (1) First name Last name If more than four dependents, see instructions and check here 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest Attach Sch. B if required. 3a Qualified dividends 4a IRA distributions Sa Pensions and annuities 6a Social security benefits 28 b Taxable interest 26 3a b Ordinary dividends. 3b 4a b Taxable amount 4b b Taxable amount 56 6a b Taxable amount 6b Qualifying Standard Deduction for- Single or Married fing separately. $12.550 Married filing jointly or 7 Capital gain or (ss). Attach Schedule D if required. If not required, check here Other income from Schedule 1, line 10 9 Add lines 1, 2, 3b, 4b, 5b, 6b, 7, and 8. This is your total income 10 Adjustments to income from Schedule 1, line 20 7 8 9 0 10 widow(er). $25,100 Head of household, $18,800 If you checked any box under Standard Deduction see instructions b Charitable contributions if you take the standard deduction (see instructions) c Add lines 12a and 12b 13 Qualified business income deduction from Form 8995 or Form 8995-A 14 Add lines 12c and 13 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-0- 11 Subtract line 10 from line 9. This is your adjusted gross income 12a Standard deduction or itemized deductions (from Schedule A) 11 12a 126 120 13 14 15