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 Slim 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. os 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. 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 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! I 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 mel), 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 down 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 suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1300 to Dav for ons to commute to mv lob this vear. Inces IN VANCOUVCHyuu uuuuuu yu WICHSVIURE Hy House UTULI HIY US VIURIU TOW 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 suits for my job. Roca Cola requires its managers to wear sults 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. I 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 1040 (through taxable income, line 15) and Schedule A. You're still doing this for free, right? Comprehensive Problem 6-60 Part b (Static) rences b. Complete pages 1 of Form 1040 (through taxable income, line 15) and Schedule A. Shady Slim's address is 19010 NW 135th Street, Miami, FL 33054 Social security numbers: Shady Slim: 123-45-6789 Shady Slim Jr. 222-22-2222 nacitun numbers. Enter any (2) Social security number (3) Relationship to you (6) qualifies for inst Child tax credit Credit for 10 instructions) (3) First name Shady Last name Sim, Jr 222-22-2222 fson BE 28 Sa La Taxaties Ordinary dividende Tamount Tabout 40 Sa 1 Wages, les pete Attach Formis) W2 2a Tamperest 3 Quid dividende 4 Abons sa Pensions and alle security benetta Capital gain oro). Arachche red red ched here Oh come from Schedule 1 Addres 1.2.3.4.5.6.7 and 8. The your income 10 An to incor From Schedule 1.22 Cha con il you aandard deduction Sons + 8 10 Required information UMNO 20 Attachment se Your social 12345 SunCVULCA Itemized Deductions (Form 1040) Go to www.rs.gov/Scheduled for instructions and the latest information Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service (49) Caution: If you are claiming and qualified disasterioso on Form 4884, e the Instructions for line 16 Nime() shown on Form 1040 1040-5R Shady Slim Medical Caution Do not include expenses rimbursed or paid by others and Dental 1 Medical and dental este intron) 9.000 Expenses 2 Enter amount from Form 10400 1040 1 to 11 2 5 Multiply re2 by 78% (0.075) 4 Subtract to a bom ne 1 fine 3 score van troentero Taxes You 5 State and local taxes Paid State and local come tes of general. You may include the comes or gunerales son line 6, but not both if you we tonelade generales taxes instead of Income Sa 5 2.000 State and local real estate auction) State and local personal property tas Se 2 of 2 Taxes You Paid ints 3 Multiply line 2 by 78% (0.075) Subtractine 3 from Intre la more than in 1, enter -- 5 State and local taxes State and local income taxes or general sales taxes. You may nolude the income taxes or generales taxes on line 5, but not both if you clect to include general taxes instead of Income check this box State and local row (tructora) State and local personal property taxes Add in a through er o mature ed or $10,000 (55.000 marad ting parately) 6. Litty and wount 50 56 2.000 BOON 5 Phi 5d References 2.000 2.000 se 7 Interest You Pald 7 Addest and Home mortgages and points if you dont of your home more to buy bu or improve your home orchioned chick this box 000 Caution Your mongage interest Home mortgage Interest and point reported to you on Form 100 See notruction limited Homemorouge rest of reported to you on Fm 10 section med i paid to the person from whom you bought the home one and show that persamento 7 of 2 Interest You Pald 7 Add lines 5o and 8 Home mortgage Interest and points. If you didn't use all of your home mortgage loan) to buy buld, or improve your home, see Instructions and check this box 18.000 Caution: Your mortgage interest Geduction may be limited (0 Instruction) Home mortgage rates and points reported to you on Form 1090. Soo instructions limited b Home mortgage interest not reported to you on Form 1098 See Instructions of limited. It paid to person from whom you bought the home, so instructions and show that person's name, identifying no and address Book ED Print Bc ferences Id Be Points not reported to you on Form 1000. Sos instructions for special rules Mortgage Insurance premiums (no instruction) Add toes Bathrown to Investment west. Attach Form 4983 razred. See raudtone 10 Add fines de and 11 is by cash or check if you made any gift of $250 or more se instructions 9 10 11 1.000 Gifts to Charity 12 Other than by cash or check you made any gift of $250 or more on you attach Format over 500 1000 Caution you made and on 10 1.090 1.000 TALLINNOIS 10 Add Ines Be and o Gifts to 11 Gns by cash or check if you made any oth of $260 or more, so instructions 11 Charity 12 Other than by cath or chock. If you made any art of $250 or moto, se instruction. You must attach Form 263 over $500 12 Caution: If you made pin and got a benefit 13 Canyover from prior your for see instructions 14 Add lines 11 through 13 Casualty and 15 Casualty and that houden) from a federady declared Gisaster father than not qualified Ganderen Altach Form 16 and enter Then Losses amount from line 18 of the form See instructions Other 16 One-trom fiat in intruction. Lint type and amount Itemized Deductions 13 14 15 ces 16 Total 17 Add the amounts in the far right column for lines through 16. Also enter this amount on Form 1040 1040-R in 2 17 Itemized Deductions 16. you let me deductions even though they are less than your standard deduction check this box For Paperwork Reduction Act Notice, see the instructions for Forms 104 and 1040 SR Cat No 171450 Schedule A Form THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF DO NOT USE THIS FORM FOR TAX FILINOS OR FOR ANY PURPOSE 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 Slim 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. os 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. 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 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! I 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 mel), 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 down 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 suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1300 to Dav for ons to commute to mv lob this vear. Inces IN VANCOUVCHyuu uuuuuu yu WICHSVIURE Hy House UTULI HIY US VIURIU TOW 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 suits for my job. Roca Cola requires its managers to wear sults 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. I 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 1040 (through taxable income, line 15) and Schedule A. You're still doing this for free, right? Comprehensive Problem 6-60 Part b (Static) rences b. Complete pages 1 of Form 1040 (through taxable income, line 15) and Schedule A. Shady Slim's address is 19010 NW 135th Street, Miami, FL 33054 Social security numbers: Shady Slim: 123-45-6789 Shady Slim Jr. 222-22-2222 nacitun numbers. Enter any (2) Social security number (3) Relationship to you (6) qualifies for inst Child tax credit Credit for 10 instructions) (3) First name Shady Last name Sim, Jr 222-22-2222 fson BE 28 Sa La Taxaties Ordinary dividende Tamount Tabout 40 Sa 1 Wages, les pete Attach Formis) W2 2a Tamperest 3 Quid dividende 4 Abons sa Pensions and alle security benetta Capital gain oro). Arachche red red ched here Oh come from Schedule 1 Addres 1.2.3.4.5.6.7 and 8. The your income 10 An to incor From Schedule 1.22 Cha con il you aandard deduction Sons + 8 10 Required information UMNO 20 Attachment se Your social 12345 SunCVULCA Itemized Deductions (Form 1040) Go to www.rs.gov/Scheduled for instructions and the latest information Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service (49) Caution: If you are claiming and qualified disasterioso on Form 4884, e the Instructions for line 16 Nime() shown on Form 1040 1040-5R Shady Slim Medical Caution Do not include expenses rimbursed or paid by others and Dental 1 Medical and dental este intron) 9.000 Expenses 2 Enter amount from Form 10400 1040 1 to 11 2 5 Multiply re2 by 78% (0.075) 4 Subtract to a bom ne 1 fine 3 score van troentero Taxes You 5 State and local taxes Paid State and local come tes of general. You may include the comes or gunerales son line 6, but not both if you we tonelade generales taxes instead of Income Sa 5 2.000 State and local real estate auction) State and local personal property tas Se 2 of 2 Taxes You Paid ints 3 Multiply line 2 by 78% (0.075) Subtractine 3 from Intre la more than in 1, enter -- 5 State and local taxes State and local income taxes or general sales taxes. You may nolude the income taxes or generales taxes on line 5, but not both if you clect to include general taxes instead of Income check this box State and local row (tructora) State and local personal property taxes Add in a through er o mature ed or $10,000 (55.000 marad ting parately) 6. Litty and wount 50 56 2.000 BOON 5 Phi 5d References 2.000 2.000 se 7 Interest You Pald 7 Addest and Home mortgages and points if you dont of your home more to buy bu or improve your home orchioned chick this box 000 Caution Your mongage interest Home mortgage Interest and point reported to you on Form 100 See notruction limited Homemorouge rest of reported to you on Fm 10 section med i paid to the person from whom you bought the home one and show that persamento 7 of 2 Interest You Pald 7 Add lines 5o and 8 Home mortgage Interest and points. If you didn't use all of your home mortgage loan) to buy buld, or improve your home, see Instructions and check this box 18.000 Caution: Your mortgage interest Geduction may be limited (0 Instruction) Home mortgage rates and points reported to you on Form 1090. Soo instructions limited b Home mortgage interest not reported to you on Form 1098 See Instructions of limited. It paid to person from whom you bought the home, so instructions and show that person's name, identifying no and address Book ED Print Bc ferences Id Be Points not reported to you on Form 1000. Sos instructions for special rules Mortgage Insurance premiums (no instruction) Add toes Bathrown to Investment west. Attach Form 4983 razred. See raudtone 10 Add fines de and 11 is by cash or check if you made any gift of $250 or more se instructions 9 10 11 1.000 Gifts to Charity 12 Other than by cash or check you made any gift of $250 or more on you attach Format over 500 1000 Caution you made and on 10 1.090 1.000 TALLINNOIS 10 Add Ines Be and o Gifts to 11 Gns by cash or check if you made any oth of $260 or more, so instructions 11 Charity 12 Other than by cath or chock. If you made any art of $250 or moto, se instruction. You must attach Form 263 over $500 12 Caution: If you made pin and got a benefit 13 Canyover from prior your for see instructions 14 Add lines 11 through 13 Casualty and 15 Casualty and that houden) from a federady declared Gisaster father than not qualified Ganderen Altach Form 16 and enter Then Losses amount from line 18 of the form See instructions Other 16 One-trom fiat in intruction. Lint type and amount Itemized Deductions 13 14 15 ces 16 Total 17 Add the amounts in the far right column for lines through 16. Also enter this amount on Form 1040 1040-R in 2 17 Itemized Deductions 16. you let me deductions even though they are less than your standard deduction check this box For Paperwork Reduction Act Notice, see the instructions for Forms 104 and 1040 SR Cat No 171450 Schedule A Form THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF DO NOT USE THIS FORM FOR TAX FILINOS OR FOR ANY PURPOSE