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Comprehensive Problem $8-84($LO $8-1,$ LO $8-2,$ LO $8-3,$ LO $8-4,$ LO $8-5)($Static$)$

$[$The following information applies to the questions displayed below.$]$

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 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 $$2,010$ 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:

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 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: $$2,200$ of interest income from corporate bonds and $$1,500$ interest income from

City of Denver municipal bonds. Overall, Reba's 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 Heather's only source of income for the year.

Reba had $$10,000$ of federal income taxes witheld by her employer. Heather made $$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.

Comprehensive Problem $8-84$ Part a$-2[$MUST MANUALLY GRADE$]($Static$)$

a$-2.$ Complete pages $1$ and $2$ of Form $1040$ for Reba. Visit the IRS website and download Form $1040.$ Enter the required values in the appropriate fields. Save

your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." $($Use $2021$ tax rules regardless of the year on the

form.$)$

Comprehensive Problem $8-84$ Part a$-3[$MUST MANUALLY GRADE$]($Static$)$

a$-3.$ Complete Schedule $1$ of Form $1040$ for Reba. Visit the IRS website and download Schedule $1$ of Form $1040.$ Enter the required values in the appropriate

fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." $($Use $2021$ tax rules regardless of the

year on the form.$)$

a$-4.$ Complete Schedule $3$ of Form $1040$ for Reba. Visit the IRS website and download Schedule $3$ of Form $1040.$ Enter the required values in the appropriate

fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." $($Use $2021$ tax rules regardless of the

year on the form.$)$

Comprehensive Problem $8-84$