Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2022. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental.

Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,110 to move their personal belongings, and she and Heather spent two days driving the 1,480 miles to Georgia.

Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,150 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses.

Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $6,100 in state income taxes and $13,150 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:

Insurance premiums	$ 8,350
Medical care expenses	$ 1,100
Prescription medicine	$ 400
Nonprescription medicine	$ 100
New contact lenses for Heather	$ 200

Shortly after the move, Reba got distracted while driving and ran into a street sign. The accident caused $950 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion.

A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,600 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,600, but she did not sell any of her stocks.

Heather reported $6,300 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather's only source of income for the year.

Reba had $10,500 of federal income taxes withheld by her employer. Heather made $1,050 of estimated tax payments during the year. Reba did not make any estimated payments.

Using the information from part a-1, Complete pages 1 and 2, Schedule 1, and Schedule 3 of Form 1040 for Reba.

Reba Dixon's address is 19010 N.W. 135th Street, Lawrenceville, GA 30043.

Social security numbers:

Reba Dixon: 111-11-1111

Heather Dixon: 222-22-2222

Answer is complete and correct. At any time during 2021, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No \begin{tabular}{l|l|l|l} 1040 PG 1 & 1040 PG 2 & Schedule 1 & Schedule 3 \end{tabular} Form 1040 Page 2 Form 1040 (2021) 16 Tax (see instructions). Check if any from Form(s): 17 Amount from Schedule 2, line 3 ... 18 Add lines 16 and 17 . 19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812 20 Amount from Schedule 3, line 7 21 Add lines 19 and 20 22 Subtract line 21 from line 18 . If zero or less, enter 0 - 23 Other taxes, including self-employment tax, from Schedule 2, line 21 24 Add lines 22 and 23 . This is your total tax 25 Federal income tax withheld from: a Form(s) W-2 b Form(s) 1099 c Other forms (see instructions) d Add lines 25 a through 25c 262021 estimated tax payments and amount applied from 2020 return - If you have \begin{tabular}{l|l} a qualifying \\ child, attach \end{tabular} 27 a Earned income credit (EIC) Sch. EIC Check here if you were born after January 1, 1998, and before January 2,2004 , and you satisfy all the other requirements for taxpayers who are at least age 18 , to claim the EIC. See instructions b Nontaxable combat pay election c Prior year (2019) earned income 28 Refundable child tax credit or additional child tax credit from Schedule 8812 ya Ameriran nnnartunitu rrarlit from Farm 8863 line \& Required information c Prior year (2019) earned income 28 Refundable child tax credit or additional child tax credit from Schedule 8812 29 American opportunity credit from Form 8863 , line 8. 30 Recovery rebate credit. See instructions 31 Amount from Schedule 3, line 15 32 Add lines 27 a and 28 through 31 . These are your total other payments and refundable credits 33 Add lines 25d,26, and 32 . These are your total payments Refund 34 If line 33 is more than line 24 , subtract line 24 from line 33 . This is the amount you overpaid 35 a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here b Routing Direct number c Type: Checking \begin{tabular}{|l|l|} \hline & \\ \hline 28 & 0 \\ \hline 29 & \\ \hline 30 & \\ \hline 31 & \\ \hline \end{tabular} deposit? See d Account instructions. number Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and Here belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Form 1040 Schedule 3 Page 1 Answer is complete and correct. At any time during 2021, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No \begin{tabular}{l|l|l|l} 1040 PG 1 & 1040 PG 2 & Schedule 1 & Schedule 3 \end{tabular} Form 1040 Page 2 Form 1040 (2021) 16 Tax (see instructions). Check if any from Form(s): 17 Amount from Schedule 2, line 3 ... 18 Add lines 16 and 17 . 19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812 20 Amount from Schedule 3, line 7 21 Add lines 19 and 20 22 Subtract line 21 from line 18 . If zero or less, enter 0 - 23 Other taxes, including self-employment tax, from Schedule 2, line 21 24 Add lines 22 and 23 . This is your total tax 25 Federal income tax withheld from: a Form(s) W-2 b Form(s) 1099 c Other forms (see instructions) d Add lines 25 a through 25c 262021 estimated tax payments and amount applied from 2020 return - If you have \begin{tabular}{l|l} a qualifying \\ child, attach \end{tabular} 27 a Earned income credit (EIC) Sch. EIC Check here if you were born after January 1, 1998, and before January 2,2004 , and you satisfy all the other requirements for taxpayers who are at least age 18 , to claim the EIC. See instructions b Nontaxable combat pay election c Prior year (2019) earned income 28 Refundable child tax credit or additional child tax credit from Schedule 8812 ya Ameriran nnnartunitu rrarlit from Farm 8863 line \& Required information c Prior year (2019) earned income 28 Refundable child tax credit or additional child tax credit from Schedule 8812 29 American opportunity credit from Form 8863 , line 8. 30 Recovery rebate credit. See instructions 31 Amount from Schedule 3, line 15 32 Add lines 27 a and 28 through 31 . These are your total other payments and refundable credits 33 Add lines 25d,26, and 32 . These are your total payments Refund 34 If line 33 is more than line 24 , subtract line 24 from line 33 . This is the amount you overpaid 35 a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here b Routing Direct number c Type: Checking \begin{tabular}{|l|l|} \hline & \\ \hline 28 & 0 \\ \hline 29 & \\ \hline 30 & \\ \hline 31 & \\ \hline \end{tabular} deposit? See d Account instructions. number Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and Here belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Form 1040 Schedule 3 Page 1