Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

My primary concerns revolve around understanding the various forms and schedules applicable to my tax situation, as well as knowing precisely where to input the

My primary concerns revolve around understanding the various forms and schedules applicable to my tax situation, as well as knowing precisely where to input the relevant information on these forms. To streamline my request, I have outlined the key areas where I seek your assistance: Form Selection: I need help in identifying which specific tax forms and schedules I should be using for my 2021 tax return. Knowing which forms are applicable to my situation is the crucial first step. Data Entry: Once the appropriate forms are identified, I require detailed guidance on where and how to enter the necessary data. Understanding which line or section corresponds to each piece of information is vital to avoid any errors. Tax Client Scenario Client and Family Information Michael Peppin is 49 years old (born December 10, 1972) and a high school art teacher and also operates a small side painting business. His Social Security Number is 555-58-8989 His spouse, Tammy Peppin is 40 years old (born on February 15, 1981) and stays home taking care of their youngest child. Tammys social security number is 123-56-8899. Their youngest child is David Peppin, who is 4 years old (born on July 10, 2017). His Social Security number is 111-25-8656. They also have an older child, Susan Peppin, who is 18 years old is a freshman at American River college. She was born August 15, 2003 and her social security number is 455-89-7475. While attending ARC, Susan did not have any tuition expenses since she qualified for the Los Rios Promise Program. Susan also worked parttime and her 2021 W-2 showed wages of $4,721, and Federal Withholding of $288. Susan lives at home with her parents. The Peppin family lives at the following address in Folsom: 2523 East Bidwell Street, Folsom Ca 95630 The Peppins did not have any crypto currency transactions and elected not to contribute to the Presidential election campaign. Income and Potential Deduction Information Michaels 2021 W-2 from his teaching job, displays wages of $69,500, Federal tax Withholding $4,050 and California tax Withholding $ 3,690 Michael received Form 1099 INT from National Bank showing $550 of interest income and a $55 Early Withdrawal Penalty Michael also received Form 1099 DIV showing Ordinary Dividends of $413 and Qualified Dividends of $413 Michael received a Form 1098-E showing $450 on Student Loan Interest paid Michael received Form W-2G showing gambling winnings of $1,000 Michael brings documentation for the following personal expenses: $8,200 Hospital bills $1,600 Dental bill for daughters braces $452 Personal property taxes based on value of vehicle $400 Friends personal GoFundMe campaign $275 Cash contributions to the Red Cross $2,025 Cash contributions to their church $250 Fair market value of clothing in good condition donated to the Salvation Army (Michael had purchased the clothing for $800) $6,575 Mortgage interest (Form 1098) on a $420,000 loan he took out on 5/23/2017 $6,820 Real estate tax paid to the County $1,830 Mortgage Insurance Premiums (PMI) on the home he purchased in 2017 $2,450 Homeowners Insurance $1050 Homeowners association fees $2,000 Gambling losses $275 in classroom supplies he purchased for use where he teaches. Small Business Information Michael also owns a small painting business that he operates on the weekends and summers when he is not teaching. He provided the following information regarding the painting business: He received Form 1099-K showing electronic processed payments received of $3,200 He mentioned that he also received a total of $4,500 from customers that paid in cash He shows the following expenses for his business: License/Fees $275 Business Insurance $315 Advertising $250 Paint Tools and Supplies $1,580 Paint $2,325 2020 Tax Preparation Fees paid in 2021 $250

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Energy Trading

Authors: Stefano Fiorenzani, Samuele Ravelli, Enrico Edoli

1st Edition

1119953693, 978-1119953692

More Books

Students also viewed these Finance questions