Required information [The following information applies to the questions displayed below.] Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessie's income is $855. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies $ 131,500 18,640 1,890 764 968 $ 13,700 6,880 7,578 6,680 358 1,390 18,400 2,780 1,930 2,880 6,900 169 Travel and lodging for craft shows 2,470 Self-employment tax on Jessie's craft income 1,710 College tuition paid for Lizzie 6,260 Interest on loans to pay Lizzie's tuition 3,680 Lizzie's room and board at college 13,100 Cash contributions to the Red Cross 645 Postage for mailing crafts b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A. (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.) Joe's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123 Form 1040 for a Head of household with one dependent. 1040 PG 1 Schedule 1 Schedule A Form 1040 Schedule A. SCHEDULE A (Form 1040) Department of the Treasury Itemized Deductions Go to www.irs.gov/ScheduleA for instructions and the latest Information. Attach to Form 1040 or 1040-SR. OMB No. 1545-0074 2020 Internal Revenue Service (99) Name(s) shown on Form 1040 or 1040-SR Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Attachment Sequence No. 07 Your social security number Medical and Dental Expenses Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040 or 1040-SR, line 11 3 Multiply line 2 by 7.5% (0.075) 2 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-0- 5 State and local taxes. Taxes You 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, 3 check this box 5a b State and local real estate taxes (see instructions) 5b State and local personal property taxes 50 d Add lines sa through So 5d Enter the smaler of line 5d or $10,000 ($5,000 if married filing separately) 50 6 Other taxes. List type and amount Interest You Paid 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box 6 7 a Home mortgage interest and points reported to you on Form 1098. See instructions if limited 8a Caution: Your b Home mortgage interest not reported to you on Form 1098. See instructions mortgage interest if limited. If paid to the person from whom you bought the home, see deduction may be instructions and show that person's name, identifying no., and address limited (see instruction). 8b Points not reported to you on Form 1098. See instructions for special rules 80 d Mortgage insurance premiums (see instructions). eAdd lines Ba through Bd. 8d 9 Investment interest. Attach Form 4952 if required. See instructions 9 10 Add lines Be and 9 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions 11 Charity Caution: If you made a gift and got a benefit for it. 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 12 13 Carryover from prior year 13 see instructions. 14 Add lines 11 through 13 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 15 Theft Losses Other Itemized Deductions 16 Other-from list in instructions. List type and amount 16 Total Itemized 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040- SR, line 12 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box Schedule A (Form 1040) 2020 For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. 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. Cat. No. 17145C < Schedule 1 Schedule A > b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A. (Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.) Joe's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123 Form 1040 for a Head of household with one dependent. 1040 PG 1 Schedule 1 Schedule A SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information. Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040, 1040-SR, or 1040-NR OMB No. 1545-0074 2020 Attachment Sequence No. 01 Your social security number Part I Additional Income 1 2a Taxable refunds, credits, or offsets of state and local income taxes Alimony received 1 2a b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 3 4 Other gains or losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 5 6 Farm income or (loss). Attach Schedule F 6 7 Unemployment compensation 7 B Other income. List type and amount 8 Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 9 Part II Adjustments to Income 10 Educator expenses 10 11 12 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 Health savings account deduction. Attach Form 8889 11 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE 14 15 16 Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction 15 16 17 Penalty on early withdrawal of savings 17 18a Alimony paid 18a b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Tuition and fees deduction. Attach Form 8917 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 10a 22 Cat. No. 71479F For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (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. < 1040 PG 1 Schedule A > Form 1040 for a Head of household with one dependent. 1040 PG 1 Schedule 1 Schedule A Form 1040 Page 1. Form 1040 Filing Status Department of the Treasury- Internal Revenue Service (99) U.S. Individual Income Tax Return Single 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Married filing Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) jointly Check only one box. If you checked the MFS box, enter the name of your 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 retum, spouse's first name and middle initial Last name Home address (number and street). If you have a P.O. box, see instructions. Apt. no. City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code Foreign country name Foreign province/state/county Foreign postal code Spouse's social security number Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. Someone can claim: You as a dependent Spouse itemizes on a separate return or you were a dual-status alien At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Standard Deduction You Spouse Yes No Your spouse as a dependent Age/Blindness You: Dependents (see instructions): Were born before January 2, 1956 Are blind (2) Social security number Spouse: Was born before January 2, 1966 (3) Relationship to you Is blind (4)if qualifies for (see instructions): (1)First name Last name Child tax credit Credit for other dependents If more than four dependents, see instructions and check here 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Attach Sch. Bif 2a Tax-exempt interest required. 3a Qualified dividends 1 2a b Taxable interest 2b b Ordinary dividends 3b 4a b Taxable amount 4b b Taxable amount 56 Ga b Taxable amount 6b 7 4a IRA distributions Sa Pensions and annuities 6a Social security benefits 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 9 Standard Deduction for- + Single or Married filing separately. $12,400 Married filing 10 Adjustments to income: jointly or 9 Add lines 1,2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income Qualifying widow(er). $24,800 Head of household, $18,650 If you checked any box under Standard Deduction, a From Schedule 1, line 22 10a b Charitable contributions if you take the standard deduction. See instructions 10b cAdd lines 10a and 10b. These are your total adjustments to income 11 Subtract line 10c from line 9. This is your adjusted gross income 12 Standard deduction or itemized deductions (from Schedule A) 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A see instructions. 14 Add lines 12 and 13 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-0- 8 9 100 11 12 13 14 15 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 113208 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. < 1040 PG 1 Schedule 1 >