Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help.Thank you. .Tax Return Problem.You will need to use form 1040,Schedule A,Schdule B and Schedule 8812 for this problem. Daniel B. Butler and his

Please help.Thank you..Tax Return Problem.You will need to use form 1040,Schedule A,Schdule B and Schedule 8812 for this problem.

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Daniel B. Butler and his spouse Freida C. Butler file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-45-6780. Dan was born on January 15, 1970, and Freida was born on August 20, 1971. During 2021, Dan and Freida furnished over half of the total ProConnect Tw Tax support of each of the following individuals, all of whom still live at home: a. Gina, their daughter, age 22, a full-time student, who married on December 21, has no income of her own and did not file a joint return with her husband, Casey, who earned $10,600 during 2021. Gina's Social Security number is 123-45-6788. b. Willie, their son, age 19, graduated high school in May 2021. He is taking a leap year and will not begin college until 2022. He had gross income of $6,300 in 2021. Willie's Social Security number is 123-45-6787. c. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786. Dan was employed as a manager by WJJJ, Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Corbin, KY 40701). Selected information from the W-2 forms provided by the employers is presented below. Dan and Freida use the cash method. Freida sold a house on December 30,2021 , and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) on the January 10 , 2022, closing date. Other income (as reported on 1099 forms) for 2021 consisted of the following: The $382 from First Bank was an original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30,2021 . The CD was purchased on October 1,2018 , for $14,995, and the yield to maturity was 3.3%. Dan participated on a game show and won a cash prize of $7,000. In addition to the above information, Dan and Freida's itemized deductions included the following: Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $8,000. They have never owned or used any virtual currency, and they do not wish to contribute to the Presidential Election Campaign. For 2021, they received the correct amount of economic impact payments (2021 recovery credits). The Kentucky income tax rate is 4%. Compute Dan and Freida's 2021 Federal income tax payable (or refund due), and complete their 2021 tax return using the appropriate forms and schedules. Suggested software: ProConnect Tax

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

Step: 3

blur-text-image

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

Message Brand And Dollars Auditing Marketing Operations

Authors: J. Mike Jacka, Peter R. Scott

1st Edition

163454000X, 9781634540001

More Books

Students also viewed these Accounting questions