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Prepare the 2021 federal income tax return using the following information. Susan P. and Steven F. Johnson are married and live at 82634 INSERT YOUR

Prepare the 2021 federal income tax return using the following information. Susan P. and Steven F. Johnson are married and live at 82634 INSERT YOUR LAST NAME Lane, Santa Barbara, CA 93101. Susan is a Dental Hygienist, and Steven manages a local Bed and Breakfast. Susan and Steven are both 39 years old. The Johnsons' household includes the following individuals, for whom they provide more than half the support. Name Susan Johnson Steven Johnson Johnny Johnson (son) Walter Johnson (father) SSN 123-45-6786 123-45-6787 123-45-6000 123-45-6785 Birthdate 02/16/1982 11/03/1982 03/01/2004 06/12/1945 You will need to determine who is a Qualifying Child or Qualifying Relative to include on Page 1 of the tax return. Walter is Steven's father and earned no income in 2021. During 2021, the Johnson's had the following items which they provided you for their 2021 return: Salaries (see W-2 forms) Say Cheese Dentistry Rose Cottage B&B Interest Income (see 1099-INT forms) City of Tucson general purpose bonds General Electric Corporation bonds First Bank certificate of deposit Interest Income (see 1099-INT forms) City of Tucson general purpose bonds General Electric Corporation bonds First Bank certificate of deposit Annual gifts from parents Insurance Proceeds (from an uncle who passed away) 30,000 50,000 Settlement amount from City Tours, see details below Blackjack winnings, see details below 100,000 2,000 Sale of Twitter stock: Susan sold 50 shares of Facebook stock on March 10, 2021 for $125 per share. Susan had originally purchased the shares on December 1, 2020 for $110 per share. Susan and Steven borrowed $20,000 from Bank of America on a personal loan to buy a new car. In July, while walking downtown, Susan was accidentally hit by a City Tour bus. The owner of the bus, City Tours, paid her medical expenses. City Tours paid her $100,000 in settlement of the personal injuries she sustained. The Johnson's had the following expenses in 2021: Medical Expenses Tax Steven had hand surgery and Johnny tore his ACL. Expenses totaled $20,000, but insurance reimbursed half of the costs. Property Taxes on Personal Residence (see 1098 form) State of California Income Tax 8,000 3,700 1,200 200 State of California Sales Tax Ad Valorem Personal Property Tax Interest Interest on Home Mortgage (Primary Residence) (see 1098 form) 15,000 Charity Cash Donation to Authorized Charity with proper documentation 5,000 Other Funeral Expenses for Uncle Contribution to Political Campaign of Senator Lottery Losses Speeding Ticket 7,000 400 4,500 250 The senator plays racquetball at the same gym with Steven, and thus Steven felt obligated to contribute to his campaign. The Johnson's keep track of their gambling (Steven plays blackjack, Susan buys lottery tickets) and can substantiate their winnings and losses. Note that you should use your LAST name as the street name for the tax return. You may ignore any credit or other taxes for the Johnson's 2021 tax return. Complete a joint 2021 Federal Income Tax return for the Johnsons, including Form 1040, Schedule 1, Schedule A (even if you decide they will claim the standard deduction), Schedule B, and page 1 of Schedule D. All tax forms

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