PLEASE USE 2020 TAX SCHED AS SHOWN BELOW

Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beths birthday is July 4, 1974, and her Social Security number is 123-45-6785. She did not engage in any virtual currency transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. Beth received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored.

The following information is shown on Beth's Wage and Tax Statement (Form W2) for 2020.

Line	Description	Amount
1	Wages, tips, other compensation	$65,000.00
2	Federal income tax withheld	9,500.00
3	Social Security wages	65,000.00
4	Social Security tax withheld	4,030.00
5	Medicare wages and tips	65,000.00
6	Medicare tax withheld	942.50
15	State	Arizona
16	State wages, tips, etc.	65,000.00
17	State income tax withheld	1,954.00

During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099DIV.

Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2020. On her 2019 Federal income tax return, she used the standard deduction.

Fees earned from her part-time tax practice in 2020 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service.

On February 8, 2020, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2020, she sold the stock for $14 a share.

Beth bought a used sports utility vehicle for $6,000 on June 5, 2020. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2020, she sold the vehicle to a friend for $6,500.

On January 2, 2020, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2020, for $55 a share. Both stock transactions were reported to Beth on Form 1099B; basis was not reported to the IRS.

During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business.

Cost of personal computer	$7,000
Cost of printer	2,000
Furniture	3,000
Supplies	650
Fee paid to computer consultant	3,500

Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 179. These items were placed in service on January 15, 2020, and used 100% in her business.

Although her employer suggested that Beth attend an in-person conference on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending. The $1,420 included $200 for the cost of meals.

During the year, Beth paid $300 for prescription medicines and $2,875 for medical bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and credit card interest was $320. Beth contributed $2,080 in cash to various qualifying charities during the year. Professional dues and subscriptions totaled $350.

Beth paid estimated Federal income taxes of $1,000.

Beth is anticipating significant changes in her life in 2021, and she has asked you to estimate her taxable income and tax liability for 2021.

She just received word that she has been qualified to adopt a 2-year-old daughter. Beth expects that the adoption will be finalized in 2021 and that she will incur approximately $2,000 of adoption expenses.

In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time, she has decided to discontinue her two part-time jobs (i.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments.

In your computations, assume that all other 2021 income and expenses will be the same as 2020 amounts. There no personal or dependency exemptions allowed in 2021. Medical deductions are subject to a 7.5% reduction of AGI in 2021. Beth's rate for the child an dependent care credit is 50% and she is entitled to the full child tax credit and adoption credit as well.

For 2021, determine the following for Beth: Filing status: ______

Total gross income: ______ Adjusted gross income: _______ The greater of total itemized deductions or standard deduction: __________ Non-itemizer charitable contribution deduction: ______ Taxable income: ________ Tax liability: __________ Total tax credits: __________ Income taxes withheld: ___________

Refund due: $10,976, $11,012, OR $11,276?

Single-Schedule X Head of household-Schedule z of the If taxable income is: Over- of the amount But not amount over- over- The tax is: over- If taxable income is: Over- $ 0 14,100 53,700 But not over- $ 14,100 53,700 $ 0 ...... 10% The tax is: ...... 10% $ 987.50 + 12% 4,617.50 + 22% $ 0 $ 9,875 40,125 $ 0 9,875 40,125 $ 1,410.00 + 12% 9,875 40,125 14,100 85,500 6,162.00 + 22% 53,700 85,525 163,300 85,525 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 85,500 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 163,300 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 207,350 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 + 37% 518,400 Married filing jointly or Qualifying widow(er)-Schedule Y-1 Married filing separately-Schedule Y-2 of the If taxable income is: Over- of the amount If taxable income is: Over- But not But not over- amount The tax is: over- over- The tax is: over- $ 0 $ 19,750 10% $ 0 $ 9,875 10% $ 0 $ 0 19,750 19,750 80,250 $ 1,975.00 + 12% 9,875 40,125 $ 987.50 + 12% 9,875 80,250 171,050 9,235.00 + 22% 40,125 85,525 4,617.50 + 22% 40,125 171,050 326,600 85,525 163,300 14,605.50 + 24% 85,525 29,211.00 + 24% 66,543.00 + 32% 80,250 171,050 326,600 414,700 326,600 414,700 163,300 33,271.50 + 32% 163,300 207,350 311,025 414,700 622,050 94,735.00 + 35% 207,350 47,367.50 + 35% 207,350 311,025 622,050 167,307.50 + 37% ... 622,050 311,025 83,653.75 + 37% Single-Schedule X Head of household-Schedule z of the If taxable income is: Over- of the amount But not amount over- over- The tax is: over- If taxable income is: Over- $ 0 14,100 53,700 But not over- $ 14,100 53,700 $ 0 ...... 10% The tax is: ...... 10% $ 987.50 + 12% 4,617.50 + 22% $ 0 $ 9,875 40,125 $ 0 9,875 40,125 $ 1,410.00 + 12% 9,875 40,125 14,100 85,500 6,162.00 + 22% 53,700 85,525 163,300 85,525 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 85,500 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 163,300 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 207,350 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 + 37% 518,400 Married filing jointly or Qualifying widow(er)-Schedule Y-1 Married filing separately-Schedule Y-2 of the If taxable income is: Over- of the amount If taxable income is: Over- But not But not over- amount The tax is: over- over- The tax is: over- $ 0 $ 19,750 10% $ 0 $ 9,875 10% $ 0 $ 0 19,750 19,750 80,250 $ 1,975.00 + 12% 9,875 40,125 $ 987.50 + 12% 9,875 80,250 171,050 9,235.00 + 22% 40,125 85,525 4,617.50 + 22% 40,125 171,050 326,600 85,525 163,300 14,605.50 + 24% 85,525 29,211.00 + 24% 66,543.00 + 32% 80,250 171,050 326,600 414,700 326,600 414,700 163,300 33,271.50 + 32% 163,300 207,350 311,025 414,700 622,050 94,735.00 + 35% 207,350 47,367.50 + 35% 207,350 311,025 622,050 167,307.50 + 37% ... 622,050 311,025 83,653.75 + 37%