Required: Complete the tax return on 2021 Form 540, and Schedule CA (540). Annie and Arnold Morris live at 123 North Sherman St., Placerville, CA 95667. They have one dependent child, Barbara, age 4, and Arnold's parents Maggie and Mel Morris also live with them. Maggie's income was $3,054 and Mel's income was $2,066, and Annie and Arnold provided more than half the cost of their support. The Morris family federal adjusted gross income (AGI) was $106,460. Included in the AGI amount are Annie's wages of $61,000 and Arnold's wages of $48,485, a California income tax refund of $320, interest received from a U.S. Savings bond of $165, long-term capital gains of $2.090, and California lottery winnings of $400. The federal AGI does not include interest income on City of Sacramento bonds of $625. They also had an allowable traditional IRA deduction of $6,000. Previously