Question
Please post with 2021 form 1040 with schedules a and b. Have values clearly shown. Thank you. Prepare a 2021 individual tax return using the
Please post with 2021 form 1040 with schedules a and b. Have values clearly shown. Thank you.
Prepare a 2021 individual tax return using the following fact pattern. Compute net tax payable or refund due for Alice and Bruce Byrd for 2021. Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their social security numbers are 123-45-6789 and 111-11-1122, respectively. Alices birthday is September 21, 1968 and Bruces is June 27, 1963. They live at 473 Revere Avenue, Newtown, NY 10187. Alice is the office manager for Ames Dental Clinic, 433 Broad Street. Newtown, NY 10187(employer identification number 98- 7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788(employer identification number 11-1111111). He is also a self -employed attorney and has a part time practice. The following information is shown on their Wage and Tax Statements (Form W-2) for 2021. Line Description Alice Bruce 1. Wages, tips and other compensation $52,600 $61,500 2. Federal income tax withheld 4,180 5,990 3. Social Security wages 52,600 61,500 4. Social Security tax withheld 3,261 3,813 5. Medicare wages and tips 52,600 61,500 6. Medicare tax withheld 763 892 15. State NY NY 16. State wages, tips, etc. 52,600 61,500 17. State income tax withheld 2,280 2,990
The following information is for Bruces law practice: Income $65,000 Utilities... $3,000 Rent $18,000 Supplies.... $5,000 Salaries $10,000 Disbursements... $3,000 The Byrds support their two children, Cynthia (born January 15, 2006, Social Security number 123-45- 6788) and John (born February 7, 2008, Social Security number 123-45-6786).. During 2021, the Byrds furnished 60% of the total support of Bruces widower father, Sam Byrd (born March 6, 1934, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his social security benefits. Sam died in November and Bruce, the beneficiary of a policy on Sams life, received life insurance proceeds of $600,000 on December 28th. The Byrds had the following expenses relating to their personal residence during 2021: Property taxes $10,720 Qualified interest on home mortgage 9,130 Repairs to roof 4,780 Utilities 3,810 Homeowners insurance 2,290 The following facts relate to medical expenses for 2021: Medical insurance premiums $4,380 Doctor bill for Sam incurred in 2020 and not paid until 2021 7,760 Operation for Sam 7,310 Prescription medicines for Sam 860 Hospital expenses for Sam 2,850 Reimbursement from insurance company, received in 2021 3,000 The medical expenses for Sam represent most of the 60% Bruce contributed toward his fathers support. They also engaged in a few stock transactions. They sold 100 shares of Green Company Stock for $10,000 on February 15, 2021. Their cost basis is $2,000. They had purchased the stock on March 15, 2009. They sold 50 shares of Orange Company Stock for $8,000 on March 3, 2021. They had purchased the stock on December 20, 2017 for $12,000.
Other relevant information follows: When they filed their 2020 state return in 2021, the Byrds paid additional state income taxes of $950. During 2021, Alice and Bruce attended a dinner dance sponsored by the Ames Police Disability Association (a qualified charitable organization). The Byrds paid $400 for the tickets. The cost of comparable entertainment would normally be $160. The Byrds contributed $4,800 to Ames Presbyterian Church and gave used clothing(cost of $1,100 and fair market value of $450) to the Salvation Army. All donations are supported by receipts and are in very good condition. In 2021, the Byrds received interest income of $1,895, which was reported on a Form 1099-INT from Second National Bank. Bruce paid $320 for an annual subscription to the Journal of Certified Public Accountants.
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