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Lou and Joann Girardi are married and file a joint return. They recently bought a new home at 21680 Skyline Drive, Henderson, NV, 89077. Their

Lou and Joann Girardi are married and file a joint return. They recently bought a new home at 21680 Skyline Drive, Henderson, NV, 89077. Their son, Stuart, attends the University of Pennsylvania full time on a full scholarship. Stuart is claimed as a dependent on the Girardis tax return. Their SSNs are Lou, 412-34-5670; Joann, 412-34-5671; and Stuart, 412-34-5672. Their birth dates are as follows: Lou, May 18, 1968; Joann, December 24, 1968; and Stuart, May 9, 2001. Their relevant tax information follows:

Joann is an attorney and owns her law firm, which is operating as an S corporation. Her W-2 information and Schedule K-1 from her law firm are as follows:

Wages (box 1) = $ 114,800.50
Federal W/H (box 2) = $ 13,000.14
Social security wages (box 3) = $ 114,800.50
Social security W/H (box 4) = $ 7,117.63
Medicare wages (box 5) = $ 114,800.50
Medicare W/H (box 6) = $ 1,664.61

Schedule K-1 from the law offices of Joann Girardi: GirardiAttorney at Law

ID # 12-3456789

100% Owner

Material participation yes

Line 1 = $22,582.00 (ordinary business income)

Line 11 = $22,582.00 ( 179 deduction)

Lou is a full-time lecturer at Arizona State University. His W-2 information from ASU is as follows:

Wages (box 1) = $ 65,000.00
Federal W/H (box 2) = $ 8,950.25
Social security wages (box 3) = $ 65,000.00
Social security W/H (box 4) = $ 4,030.00
Medicare wages (box 5) = $ 65,000.00
Medicare W/H (box 6) = $ 942.50

The following are other income and expenses they received and incurred during the year:

Income
Dividend (all qualified) $ 666
Interest 765
Expenses
Real estate taxes 7,836
State sales tax 1,629
Mortgage interest 32,562
Charitable contribution 2,598

They have received interest from Second National Bank of Nevada and Dividend from ABC Brokerage.

Required:

Prepare the Girardis federal tax return for 2021. Use Form 1040, Schedules A, B, and E, and 8812. Assume that the Girardis do not qualify for any credits (although they may). For any missing information, make reasonable assumptions. (Assume no AMT although it may apply; Form 6251 or the AMT calculation is not required.). Use the appropriate Tax Tables or Tax Rate Schedules.

Note: List the names of the taxpayers in the order in which they appear in the problem. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. Do not round intermediate computations. Round your final answers to nearest the nearest whole dollar amount. Do not skip rows, while entering in Deductions section of Form 1040 PG1, interest section of Schedule B and Nonpassive Income and Loss section of Schedule E. Enter zero where applicable.

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