Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2021 To the friendly student tax preparer: Hi, it's Shady Slini again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady Jr. The judge owed me a few favors and I really love the kid. He lives with me full time and my ex-wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess. I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house, I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8!). Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year and have receipt documentation for all contributions). I'm such a nice guy!! gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! I contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I don't even miss it because Roca Cola takes it right off my paycheck every month. $15 a month starting in July, My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was dowh on his luck. He lost his job and his house. I gave him $500 to help him out. paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new sults for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school. did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. That should be all the information you need right now. Please calculate my taxable income and complete page 1 of Form nan think tovable incomn line 161 on Cchartillo A Vivre etilinn the far fram vikt? b. Complete pages 1 of Form 1040 (through taxable income, line 15) and Schedule A. Shady Slim's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers Shady Slim: 123-45-6789 Shady Slim Jr. 222-22-2222 (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.) Form 1040 for a Head of household with one dependent. 1040 PG 1 Schedule A Form 1040 Schedule A SCHEDULE A (Form 1040) OMB No 1545-0074 Itemized Deductions 2020 Department of the Treasury Go to www.in.gov/Schedule for instructions and the latest information Attach to Form 1040 1040-SR. Caution: If you are calming a pet and fed disaster om on Form 4684, the Instructions for ine 16 mal Revenue Service (90) Attachment Sequence No. 07 2 0 Required information Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (sow instructions) Dental Expenses 2 Enter amount from Form 1040 or 1040-SR, line 11 3 Multiply line 2 by 7.5% (0.075) 4 Subtract line 3 from line 1. If line 3 is more than line 1. enter - - Taxes You 5 State and local taxes Paid a State and cal income taxes or general sales taxes. You may include either Income tax or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box b Stalo and local real estate taxes (o instructions) c State and local personal property taxes d Add lines ba through 5c Enter the smaller of ined or 510,000 ($5,000 if mamed filing separately) other taxes. List type and amount 5a 5b 5c 5d 50 7 0 Interest You Pald 7 Add lines 50 and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan() to buy, bold, or improve your home, se instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited Ba Ba Required information a Home mortgage Interest and points reported to you on Form 1098. See instructions if limited Caution: Yout b Home mortgage Interest not reported to you on Form 1098. See Instructions mortgage interest if limited. If paid to the person from whom you bought the home, see deduction may be instructions and show that person's name, identifying no. and address limited (see Instruction) 8b 10 0 cPoints not reported to you on Form 1008, Soe instructions for special rules 80 d Mortgage Insurance premiums (800 instruction) 8d Add Ines Ba through od Be Investment interest Attach Form 4052 if required. Soe instructions 9 10 Add lines Be and 9 Gifts to 11 Ginis by cash or chock. If you made any gift of $250 or more, 100 11 instructions Charity 12 Other than by cash or check if you made any gift of $250 or more, 500 Instructions. You must attach Form 8283 if over 3500 12 Caution: If you made a gift and 13 got a benefit for it, 13 Carryover from prior year see instructions 14 Add linen 11 through 13 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than not qualified disaster losses) Theft Losses Altach Form 4684 and enter the amount from line 18 of that form See instructions Other 16 Other-trom ist in instructions. List type and amount 14 0 15 10 11 Required information 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines Bo and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, so instructions Charity 12 Other than by cash or check. If you made any gift of $250 or more, 100 Instructions. You must attach Form 8283 if over $500 12 Caution: If you made a gift and got a benefit for it. 13 Carryover from prior year see instructions 14 Add In 1 through 13 Casualty and 15 Casualty and theft on(es) from a federally declared disaster (other than not qualified disaster tones) Theft Losses Attach Form 4684 and enter the amount from line 18 of that form See Instructions Other 16 Other from list in instructions. List type and amount Itemized Deductions 13 15 16 17. Add the amounts in the far right column for lines through 16. Also, enter this amount on Form 1040 Total 1040-SR line 12 17 Itemized Deductions 18 W you elect to temnice deductionis even though they are less than your standard deduction check this box For Paperwork Reduction Act Notico, see the Instructions for Forms 1040 and 1040-SR. Cat No 171450 Schedule A Fon 1600 2020 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF, DO NOT USE THIS FORTE FOR TAX PLINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL 2021 McGraw-Hill Education Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2021 To the friendly student tax preparer: Hi, it's Shady Slini again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady Jr. The judge owed me a few favors and I really love the kid. He lives with me full time and my ex-wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess. I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house, I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8!). Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year and have receipt documentation for all contributions). I'm such a nice guy!! gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! I contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I don't even miss it because Roca Cola takes it right off my paycheck every month. $15 a month starting in July, My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was dowh on his luck. He lost his job and his house. I gave him $500 to help him out. paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new sults for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school. did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. That should be all the information you need right now. Please calculate my taxable income and complete page 1 of Form nan think tovable incomn line 161 on Cchartillo A Vivre etilinn the far fram vikt? b. Complete pages 1 of Form 1040 (through taxable income, line 15) and Schedule A. Shady Slim's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers Shady Slim: 123-45-6789 Shady Slim Jr. 222-22-2222 (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.) Form 1040 for a Head of household with one dependent. 1040 PG 1 Schedule A Form 1040 Schedule A SCHEDULE A (Form 1040) OMB No 1545-0074 Itemized Deductions 2020 Department of the Treasury Go to www.in.gov/Schedule for instructions and the latest information Attach to Form 1040 1040-SR. Caution: If you are calming a pet and fed disaster om on Form 4684, the Instructions for ine 16 mal Revenue Service (90) Attachment Sequence No. 07 2 0 Required information Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (sow instructions) Dental Expenses 2 Enter amount from Form 1040 or 1040-SR, line 11 3 Multiply line 2 by 7.5% (0.075) 4 Subtract line 3 from line 1. If line 3 is more than line 1. enter - - Taxes You 5 State and local taxes Paid a State and cal income taxes or general sales taxes. You may include either Income tax or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box b Stalo and local real estate taxes (o instructions) c State and local personal property taxes d Add lines ba through 5c Enter the smaller of ined or 510,000 ($5,000 if mamed filing separately) other taxes. List type and amount 5a 5b 5c 5d 50 7 0 Interest You Pald 7 Add lines 50 and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan() to buy, bold, or improve your home, se instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited Ba Ba Required information a Home mortgage Interest and points reported to you on Form 1098. See instructions if limited Caution: Yout b Home mortgage Interest not reported to you on Form 1098. See Instructions mortgage interest if limited. If paid to the person from whom you bought the home, see deduction may be instructions and show that person's name, identifying no. and address limited (see Instruction) 8b 10 0 cPoints not reported to you on Form 1008, Soe instructions for special rules 80 d Mortgage Insurance premiums (800 instruction) 8d Add Ines Ba through od Be Investment interest Attach Form 4052 if required. Soe instructions 9 10 Add lines Be and 9 Gifts to 11 Ginis by cash or chock. If you made any gift of $250 or more, 100 11 instructions Charity 12 Other than by cash or check if you made any gift of $250 or more, 500 Instructions. You must attach Form 8283 if over 3500 12 Caution: If you made a gift and 13 got a benefit for it, 13 Carryover from prior year see instructions 14 Add linen 11 through 13 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than not qualified disaster losses) Theft Losses Altach Form 4684 and enter the amount from line 18 of that form See instructions Other 16 Other-trom ist in instructions. List type and amount 14 0 15 10 11 Required information 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines Bo and 9 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, so instructions Charity 12 Other than by cash or check. If you made any gift of $250 or more, 100 Instructions. You must attach Form 8283 if over $500 12 Caution: If you made a gift and got a benefit for it. 13 Carryover from prior year see instructions 14 Add In 1 through 13 Casualty and 15 Casualty and theft on(es) from a federally declared disaster (other than not qualified disaster tones) Theft Losses Attach Form 4684 and enter the amount from line 18 of that form See Instructions Other 16 Other from list in instructions. List type and amount Itemized Deductions 13 15 16 17. Add the amounts in the far right column for lines through 16. Also, enter this amount on Form 1040 Total 1040-SR line 12 17 Itemized Deductions 18 W you elect to temnice deductionis even though they are less than your standard deduction check this box For Paperwork Reduction Act Notico, see the Instructions for Forms 1040 and 1040-SR. Cat No 171450 Schedule A Fon 1600 2020 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF, DO NOT USE THIS FORTE FOR TAX PLINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL 2021 McGraw-Hill Education