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Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem.

December 31, 2020

To the friendly student tax preparer:

Hi, its Shady Slim again. I just got back from my 55th birthday party, and Im told that you need some more information from me in order to complete my tax return. Im an open book! Ill tell you whatever I think you need to know.

Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady Jr. The judge owed me a few favors and I really love the kid. He lives with me full time and my ex-wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess.

I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8!).

Can you believe Im still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year.

Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,000 in medical expenses, and I was only reimbursed for $11,000. Good thing I can write off medical expenses, right?

I contributed a lot of money to charity this year (and have receipt documentation for all contributions). Im such a nice guy! I gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! I contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me!), even though I only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didnt like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $90. Turns out, I dont even miss it because Roca Cola takes it right off my paycheck every month . . . $15 a month starting in July. My pay stub verifies that I contributed the $90 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $500 to help him out.

I paid a lot of money in interest this year. I paid a total of $950 in personal credit card interest. I also paid $18,000 in interest on my $500,000 home mortgage that helped me buy my dream home. I also paid $2,000 in real estate taxes for my new house.

A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year.

Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school. I did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me.

That should be all the information you need right now. Please calculate my taxable income and complete page 1 of Form 1040 (through taxable income, line 11b) and Schedule A. You're still doing this for free, right?

b. Complete page 1 of Form 1040 (through taxable income, line 11b) Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and 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 2020 tax rules regardless of year on form.) 41040 Income Return Department of the Treasury - Internal Revenue Service ) 2019 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) | Qualifying widower) (QW) Check only one box. If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is a child but not your dependent. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. Apt no. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Checking a box below will not change your tax or refund. You Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here 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 alien Age/Blindness You Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) Vif qualities for (see instructions: (1) First name Last name Child tax credit Credit for other dependents 1 2b 3b 4b 4d 5b 6 7a 1 Wages, salaries, tips, etc. Attach Form(s) W-2. 2a Tax-exempt interest. 2a b Taxable interest. Attach Sch. B if required Qualified dividends 3a Standard b Ordinary dividends. Attach Sch. B if required Deduction for 4a IRA distributions. 4a b Taxable amount Single or Married Pensions and annuities. 4c d Taxable amount filing separately. $12.200 5a Social security benefits. 5a b Taxable amount Married filing 6 Capital gain or loss). Attach Schedule Dif required. If not required, check here jointly or Qualifying widower). 7a Other income from Schedule 1, line 9. $24.400 Head of b Add lines 1, 2b, 35, 46, 4d, 5b, 6, and 7a. This is your total income household $18,350 8a Adjustments to income from Schedule 1, line 22 - If you checked b Subtract line 8a from line 7b. This is your adjusted gross income any box under 9 Standard 9 Standard deduction or itemized deductions (from Schedule A) Deduction, 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 see instructions. 11a Add lines 9 and 10 b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 7b 8 8b 11a 11b Form 1040 (2019) c. Complete Schedule A. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and 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 2020 tax rules regardless of year on the form.) SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040 or 1040-SR) Go to www.irs.gov/Schedule for instructions and the latest information. 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Attachment Sequence No. 07 Name(s) shown on Form 1040 or 1040-SA Your social security number 1 3 4 Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions) Dental 2 Enter amount from Form 1040 or 1040-SR, Expenses line 8b 2 3 Multiply line 2 by 10% (0.10) 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter - - Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c.. e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount 7 Add lines 5e and 6 Interest You 8 Home mortgage interest and points. If you didn't use all of your home Paid mortgage loan(s) to buy, build, or improve your home, see Caution: Your mortgage interest instructions and check this box deduction may be a Home mortgage interest and points reported to you on Form 1098. See instructions). instructions if limited b Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 5a 5b 5c 5d 5e 6 7 limited (see 8 8e 9 8b c Points not reported to you on Form 1098. See instructions for special rules. 8C d Reserved 8d e Add lines 8a through 8c 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines 8e and 9 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions 11 12 Other than by cash or check. If you made any gift of $250 or more, Caution: If you 12 made a gift and see instructions. You must attach Form 8283 if over $500. got a benefit for it. 13 Carryover from prior year 13 . 14 Add lines 11 through 13. 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 15 Other 16 Otherfrom list in instructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 9 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box. For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C Schedule A (Form 1040 or 1040-SR) 2019 b. Complete page 1 of Form 1040 (through taxable income, line 11b) Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and 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 2020 tax rules regardless of year on form.) 41040 Income Return Department of the Treasury - Internal Revenue Service ) 2019 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) | Qualifying widower) (QW) Check only one box. If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is a child but not your dependent. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. Apt no. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Checking a box below will not change your tax or refund. You Spouse Foreign country name Foreign province/state/county Foreign postal code If more than four dependents, see instructions and here 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 alien Age/Blindness You Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) Vif qualities for (see instructions: (1) First name Last name Child tax credit Credit for other dependents 1 2b 3b 4b 4d 5b 6 7a 1 Wages, salaries, tips, etc. Attach Form(s) W-2. 2a Tax-exempt interest. 2a b Taxable interest. Attach Sch. B if required Qualified dividends 3a Standard b Ordinary dividends. Attach Sch. B if required Deduction for 4a IRA distributions. 4a b Taxable amount Single or Married Pensions and annuities. 4c d Taxable amount filing separately. $12.200 5a Social security benefits. 5a b Taxable amount Married filing 6 Capital gain or loss). Attach Schedule Dif required. If not required, check here jointly or Qualifying widower). 7a Other income from Schedule 1, line 9. $24.400 Head of b Add lines 1, 2b, 35, 46, 4d, 5b, 6, and 7a. This is your total income household $18,350 8a Adjustments to income from Schedule 1, line 22 - If you checked b Subtract line 8a from line 7b. This is your adjusted gross income any box under 9 Standard 9 Standard deduction or itemized deductions (from Schedule A) Deduction, 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 see instructions. 11a Add lines 9 and 10 b Taxable income. Subtract line 11a from line 8b. If zero or less, enter-O- For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B 7b 8 8b 11a 11b Form 1040 (2019) c. Complete Schedule A. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and 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 2020 tax rules regardless of year on the form.) SCHEDULE A Itemized Deductions OMB No. 1545-0074 (Form 1040 or 1040-SR) Go to www.irs.gov/Schedule for instructions and the latest information. 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Internal Revenue Service (99) Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Attachment Sequence No. 07 Name(s) shown on Form 1040 or 1040-SA Your social security number 1 3 4 Medical Caution: Do not include expenses reimbursed or paid by others. and 1 Medical and dental expenses (see instructions) Dental 2 Enter amount from Form 1040 or 1040-SR, Expenses line 8b 2 3 Multiply line 2 by 10% (0.10) 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter - - Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c.. e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 6 Other taxes. List type and amount 7 Add lines 5e and 6 Interest You 8 Home mortgage interest and points. If you didn't use all of your home Paid mortgage loan(s) to buy, build, or improve your home, see Caution: Your mortgage interest instructions and check this box deduction may be a Home mortgage interest and points reported to you on Form 1098. See instructions). instructions if limited b Home mortgage interest not reported to you on Form 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address 5a 5b 5c 5d 5e 6 7 limited (see 8 8e 9 8b c Points not reported to you on Form 1098. See instructions for special rules. 8C d Reserved 8d e Add lines 8a through 8c 9 Investment interest. Attach Form 4952 if required. See instructions 10 Add lines 8e and 9 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions 11 12 Other than by cash or check. If you made any gift of $250 or more, Caution: If you 12 made a gift and see instructions. You must attach Form 8283 if over $500. got a benefit for it. 13 Carryover from prior year 13 . 14 Add lines 11 through 13. 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 15 Other 16 Otherfrom list in instructions. List type and amount Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040-SR, line 9 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box. For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. Cat. No. 17145C Schedule A (Form 1040 or 1040-SR) 2019