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 $2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 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 $3,000 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 $5,800 in state income taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Insurance premiums $ 7,952 Medical care expenses $ 1,100 Prescription medicine $ 350 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 $900 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 $1,500 interest income from City of Denver municipal bonds. Overall, Rebas stock portfolio appreciated by $12,000, but she did not sell any of her stocks. Heather reported $6,200 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 $10,000 of federal income taxes withheld by her employer. Heather made $1,000 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.

a-2. Complete pages 1 and 2 of Form 1040 for Reba. Visit the IRS website and download Form 1040. (Use 2021 tax rules regardless of the year on the form.)

https://www.irs.gov/pub/irs-pdf/f1040.pdf

2021 Tax Rate Schedules

Individuals

Schedule X-Single

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,950	10% of taxable income
$ 9,950	$ 40,525	$995 plus 12% of the excess over $9,950
$ 40,525	$ 86,375	$4,664 plus 22% of the excess over $40,525
$ 86,375	$ 164,925	$14,751 plus 24% of the excess over $86,375
$ 164,925	$ 209,425	$33,603 plus 32% of the excess over $164,925
$ 209,425	$ 523,600	$47,843 plus 35% of the excess over $209,425
$ 523,600		$157,804.25 plus 37% of the excess over $523,600

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over:	But not over:	The tax is:
$ 0	$ 19,900	10% of taxable income
$ 19,900	$ 81,050	$1,990 plus 12% of the excess over $19,900
$ 81,050	$ 172,750	$9,328 plus 22% of the excess over $81,050
$ 172,750	$ 329,850	$29,502 plus 24% of the excess over $172,750
$ 329,850	$ 418,850	$67,206 plus 32% of the excess over $329,850
$ 418,850	$ 628,300	$95,686 plus 35% of the excess over $418,850
$ 628,300		$168,993.50 plus 37% of the excess over $628,300

Schedule Z-Head of Household

If taxable income is over:	But not over:	The tax is:
$ 0	$ 14,200	10% of taxable income
$ 14,200	$ 54,200	$1,420 plus 12% of the excess over $14,200
$ 54,200	$ 86,350	$6,220 plus 22% of the excess over $54,200
$ 86,350	$ 164,900	$13,293 plus 24% of the excess over $86,350
$ 164,900	$ 209,400	$32,145 plus 32% of the excess over $164,900
$ 209,400	$ 523,600	$46,385 plus 35% of the excess over $209,400
$ 523,600		$156,355 plus 37% of the excess over $523,600

Schedule Y-2-Married Filing Separately

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,950	10% of taxable income
$ 9,950	$ 40,525	$995 plus 12% of the excess over $ 9,950
$ 40,525	$ 86,375	$4,664 plus 22% of the excess over $40,525
$ 86,375	$ 164,925	$14,751 plus 24% of the excess over $86,375
$ 164,925	$ 209,425	$33,603 plus 32% of the excess over $164,925
$ 209,425	$ 314,150	$47,843 plus 35% of the excess over $209,425
$ 314,150		$84,496.75 plus 37% of the excess over $314,150

a-1. Determine Reba's federal Income taxes due or taxes payable for the current year. Use Ta> round Intermediate values. Round your final answers to the nearest whole dollar amount. I applicable.) ef 5 Answer is complete and correct. Amount IS 38,000 $ 14,400 50,000 $ $ 1.200 $ 2,200 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: $ 0 IS 105,800 $ A 19,500 19,500 $ IS 86.300 Medical expenses $ 3,130 State income taxes IS 5.800 BO IS 12,500 IS 21,430 $ 18,800 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 $ $ 21,430 64.870 8,587 $ $ (685) $ 10,000 (10) Tax prepayments Tax refund > S (2,118) 2021 1040 Department of the Treury-Internal Service U.S. Individual Income Tax Retum OMB No 1545-0074 IRS Use Only-Do not write or staple in this serie Filing Status Single Marted fling jointly Married filing separately (MESHead of household (HOH) Qualifying widower (ow Check only one box If you checked the MES box, enter the name of your spouse. If you checked the HOH or GW box, enter the child's name If the quailtying person is a child but not your dependent Your first name and middle initial Last name Your social security number joint ratum, spound's first name and middle initial Last name Spouse's social security number 1 Home address number and street). If you have a P.O.box, se instructions Apt.no Presidential Election Campaign Check here if you, or your City, town, or post office. If you have a foreign address, aho completo specae balow. ZIP code spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign country name Fordig province stato county Foreign postal code your tax or refund You Spouse At any time during 2021, did you receive, sol, exchange, or otherwise dispose of any financial Interest in any virtual currency Yes No Standard Someone can claim you as a dependent Your spouse as a dependent Deduction Spouse Itemizes on a separate return or you were a dual-status allen Age/Blindness You Were bom before January 2, 1957 Are blind Spouse: Was bom before January 2, 1957 Is blind Dependents see instructions: Social securty (3) Pelationship 14 il qualifics for instruction If more (1) First name Last name to you Child tax credit Credit for other dependents than four dependents. see Instructions and check . here 1 Wages, salaries, tips, etc. Attach Forms W-2 Aetach 2a Tax-exempt Interest 2a b Taxable interest Sch. Bit 3a Qualified dividends 3a required. 3b b Ordinary dividends 4a TRA distributions 4a b Taxable amount 5a Pensions and annuities 5a Taxable amount 5b Standard 6a Social security benefits Taxable amount 6b Deduction for 7 Capital gain or loss). Attach Schedule D if required. If not required, check here 7 - Single of Marading 8 Other Income from Schedule 1. line 10 8 separately $12.550 9 Add lines 1, 2, 3, 4, 5, 6, 7 and 8. This is your total income 9 Marding 10 Adjustments to Income from Schedule 1, line 26 10 yor 11 Subtract line 10 from line. This is your adjusted gross income 11 widow 2100 12a Standard deduction or itemized deductions from Schedule A) 12a Head of b Charitable contributions if you take the standard deductions Instructions 12b houshold 100 C Add Ines 12 and 12b 12c you checked 13 Qualified business income deduction from Form 8995 or Form 1995-A 13 aryti Standard 14 Add lines 12 and 13 14 Deduction 15 Taxable income. Subtract line 14 from line 11. If zero or loss, enter-6-. worcom 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, se separate instruction Cat No. 113200 Form 1040 0 Sailing Form 10402021) Page 2 16 Tax (see Instructions. Check if any from Poms 1 6914 24972 3D 16 17 Amount from Schedule 2. line 3 17 18 Add lines 16 and 17. 16 19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812 19 20 Amount from Schedule 3. line 8 20 21 Add lines 19 and 20. 21 22 Subtract line 21 from line 18. If zero or less, enter- 22 Other taxes, including self-employment tax, from Schedule 2 line 21 23 24 Add lines 22 and 23. This is your total tax 24 25 Federal income tax withheld from: a Form(s) W-2 25a b Form(s) 1099 250 c Other forms (see instructions) 250 d Add lines 25a through 250 250 26 26 2021 estimated tax payments and amount applied from 2020 return. you have a quallyng child 27a Earned Income credit (EIC) 27a atach o C Check here if you were bom after January 1, 1990, and before January 2, 2004, and you satisfy all the other requirements for taxpayers who are at least age 18, to claim the BC. See Instructions b Nontaxable combat pay election 270 C Prior year (2019) earned Income 27c 28 Refundable child tax credit or additional child tax credit from Schedule 8812 29 29 American opportunity credit from Form 2863, Ines 29 30 Recovery rebate credit. See Instructions 30 31 Amount from Schedule 3. Ine 15. 31 32 Add Ines 27 and 28 through 31. These are your total other payments and refundable credits 32 33 Add Ines 25d, 26, and 32. These are your total payments 33 Refund 34 If line 33 Is more than Ine 24. subtract Ine 24 from line 32. This is the amount you overpald 34 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here 35a Direct deponit? Routing number Type: Checking Savings Soe instructions Account number 36 Amount of line 34 you want applied to your 2022 estimated tax 36 Amount 37 Amount you owe. Subtract line 33 from line 24. For details on how to pay, see Instructions 37 You Owe 38 Estimated tax penalty (see instructions Third Party Do you want to allow another person to discuss this retum with the IRS? See Designee Instructions Yes. Complete below NO Designe's Phone Personal identification number (PIN Sign Under penalties of perjury, I declare that have mind this rutum and accompanying schedules and statements, and to the best of my knowledge and bolol, they are correct, and complete. Declaration of preparar poter than taxpayer) is based on all infomation of which preparar has any knowledge Here Your signature Your occupation If the Sant you an identity Protection Portor it here Joint um? not See instruction Spouse's signatura. If a joint return, both must sig | Spouma's upman If the want your spousen Kapay for Identity Protection PIN artrither your records nost) Phono no. Email address Praperor's name Prepara's signature Data PTIN Check it Paid Solemployed Preparer Firm's name Phone Use Only Firm's address Firm's EIN Goto www.is.gov/Form 1040 for instructions and the latest information Form 1040 2021