Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2021. 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 Heathers 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 $2,390 to move their personal belongings, and she and Heather spent two days driving the 1,740 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 $3,590 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 $7,010 in state income taxes and $15,120 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:

Insurance premiums	$ 9,600
Medical care expenses	$ 1,100
Prescription medicine	$ 540
Nonprescription medicine	$ 100
New contact lenses for Heather	$ 200

Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $1,090 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 wasnt 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 $1,880 interest income from City of Denver municipal bonds. Overall, Rebas stock portfolio appreciated by $14,490, but she did not sell any of her stocks. Heather reported $6,900 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heathers only source of income for the year. Reba had $12,080 of federal income taxes withheld by her employer. Heather made $1,190 of estimated tax payments during the year. Reba did not make any estimated payments. Assume Reba received the correct advance payment for her 2021 individual recovery credit.

QUESTION: 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

a-1 answers:

1040 pg 1

1040 pg 2

schedule 1

schedule 3

a-1. Determine Reba's federal income taxes due or taxes payable for the current year. Use Tax Rate Schedule for reference. (Do no round intermediate values. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) Amount $ $ $ 38,000 14,400 50,000 1,200 2,200 $ $ 0 $ $ 105,800 $ $ Description Gross Income: Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds (1) Gross income Deductions for AGI: Expenses for rental property (2) Total for AGI deductions (3) AGI From AGI deductions: Medical expenses State income taxes Charitable contributions (4) Total itemized deductions (5) Standard deduction (6) Greater of itemized deductions or standard deduction (7) Taxable income (8) Tax on taxable income (9) Credits (10) Tax prepayments Tax refund 19,500 19,500 86,300 $ $ $ $ $ $ $ 4,968 7,010 15,120 27,098 18,800 27,098 59,202 7,321 685 $ $ $ $ $ 12,080 5,444 (1) First name Last name Child tax credit Credit for other dependents Heather Dixon 222-22-2222 Daughter If more than four dependents, see instructions and check here 1 2a 4a 5a 8 1 Wages, salaries, tips, etc. Attach Form(s) W-2 38,000 Attach Sch. Bir 2a Tax-exempt interest b Taxable interest. 2b required. 3a Qualified dividends 3a b Ordinary dividends. 3b 4a IRA distributions b Taxable amount 4b 5a Pensions and annuities b Taxable amount 5b 6a Social security benefits b Taxable amount 6b 7 Capital gain or loss). Amount. 7 Standard Deduction for 8 Other Income from Schedule 1, line 9 Single or Married filing separately. 9 Add lines 1, 26, 35, 46, 56, 66, 7, and 8. This is your total income 9 38,000 $12.400 Married filing 10 Adjustments to income: jointly or Qualifying a From Schedule 1, line 22 10a widower) $24,800 b Charitable contributions if you take the standard deduction. See instruction 10b 15,120 - Head of household, c Add lines 10a and 10b. These are your total adjustments to income 10c $18,650 If you checked 11 Subtract line 10c from line 9. This is your adjusted gross income 11 38,000 any box under Standard 12 12 Standard deduction or itemized deductions (from Schedule A) 27,098 Deduction, 13 see instructions. 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 14 Add lines 12 and 13 14 27,098 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- 10,902 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2020) 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 FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education. 15 1 8814 16 17 18 0 19 20 21 22 23 24 25a 25b 250 250 0 16 Tax (see instructions). 2 4972 Amount. 17 Amount from Schedule 2 line 3... 18 Add lines 16 and 17. 19 Child tax credit or credit for other dependents 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-O- 23 Other taxes, including self-employment tax, from Schedule 2. line 10 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 Other forms (see Instructions) d Add lines 25a through 250 If you have a qualifying 26 2020 estimated tax payments and amount applied from 2019 child, attach return Sch. EIC 27 Eamed income credit (EIC) If you have nontaxable 28 Additional child tax credit. Attach Schedule 8812 combat pay. 29 American opportunity credit from Form 8863, line 8. nstructions. 30 Recovery rebate credit. See instructions 31 Amount from Schedule 3. line 13 32 Add lines 27 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 overpald 35a Amount of line 34 you want refunded to you. Routing Direct c Type: Checking number deposit? See d Account instructions. number 26 27 28 see 29 30 31 32 0 33 0 34 35a Savings A Phone Amount You 37 Subtract line 33 from line 24. This is the amount you owe now 37 Owe Note: Schedule H and Schedule SE filers, line 37 may not represent all of the taxes you owe for 2020. See Schedule 3, line 12e, and its instructions for details For details on how to 38 Estimated tax penalty (see Instructions) 38 pay, see instructions Third Party Do you want to allow another person to discuss this return with the IRS? See instructions Yes. Complete below. No Designee Designee's Personal identification name no. number (PIN) Sign Under penalties of perjury, I declare that I have examined this retum 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. Joint Your signature Date Your occupation if the IRS sent you an identity return? Protection PIN, enter it here See instructions. (see inst.) Keep a If the IRS sent your spouse an copy for Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Identity Protection PIN, enter it here your records. (see inst.) Phone no. Email address Paid Preparer's name Preparer's signature Date PTIN Check if: Preparer Self-employed Use Firm's name Phone no. Firm's address Firm's EIN Go to www.irs.gov/Form1040 for instructions and the latest Information. Form 1040 (2020) 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 FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education. Only Part 1 1 2a 2a 14,400 b 3 3 Additional Income Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) Year 2016 Business income or loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E Farm income or loss). Attach Schedule F Unemployment compensation Other income. Amount. 4 4 5 5 6 6 7 7 8 8 9 9 14,400 Part II Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Adjustments to Income Educator expenses 10 10 11 11 12 12 13 13 14 14 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 Health savings account deduction. Attach Form 8889 Moving expenses for members of the Armed Forces. Attach Form 3903 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction Penalty on early withdrawal of savings Alimony paid 15 15 16 16 17 17 18a 18a b Recipient's SSN 19 19 20 20 Date of original divorce or separation agreement (see instructions) IRA deduction Student loan interest deduction Tuition and fees deduction. Attach Form 8917 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10a 21 21 22 22 Intemal Revenue Service Name(s) shown on Form 1040 or 1040-SR Go to www.irs.gov/Form 1040 for instructions and the latest information. Attachment Sequence No. 03 Your social security number 1 9 Part 1 Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required 2 Credit for child and dependent care expenses. Attach Form 2441 2 3 Education credits from Form 8863, line 19 3 4 Retirement savings contributions credit. Attach Form 8880 4 5 Residential energy credits. Attach Form 5695 5 6 Other credits from Form: a 3800 b 8801 6 7 Add lines 1 through 6. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 20 7 0 Part II Other Payments and Refundable Credits 8 Net premium tax credit. Attach Form 8962 8 9 Amount paid with request for extension to file (see instructions) 10 Excess social security and tier 1 RRTA tax withheld 10 11 Credit for federal tax on fuels. Attach Form 4136 11 12 Other payments or refundable credits: a Form 2439 12a Qualified sick and family leave credits from Schedule(s) H and Form(s) 7202 12b c Health coverage tax credit from Form 8885 12c d Other 12d e Deferral for certain Schedule H or SE filers (see instructions) 12e f Add lines 12a through 12e 12f 13 Add lines 8 through 12. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 31 13 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G Schedule 3 (Form 1040) 2020 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 FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2021 McGraw-Hill Education