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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, 2021

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 15) and Schedule A. You're still doing this for free, right?

A. Complete page 1 of Form 1040 (through taxable income, line 15)

Not sure if I'm doing it right

a. Calculate the taxable income. $ 172,900 $ 172,900 2,090 Gross income AGI Itemized Deductions: Charitable Contributions Medical Expenses Mortgage Interest Real Estate Taxes Taxable income 0 18,000 2,000 (22,090) $ 150,810 Department of the Treasury - Internal Revenue Service 11040 (99) U.S. Individual Income Tax Return 2021 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 If you checked the MFS box, enter the name of your spouse. If you checked the HOH or GW box, enter the child's name if the qualifying one box. person is a child but not your dependent Your first name and middle initial Last name Your social security number Shady Slim 1 2 3 4 5 6 7 8 9 If joint retur, spouse's first name and middle initial Last name Spouse's social security number State Last name to you 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 City, town, or post office. If you have a foreign address, also complete spaces below. ZIP code spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign country name Foreign province/state/county Foreign postal code your tax or refund. You Spouse At any time during 2021, did you receive, sell, 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 alien Age/Blindness You: Were born before January 2, 1957 Are blind Spouse: Was born before January 2, 1957 Is blind Dependents (see instructions): (2) Social security (3) Relationship (4) Vit qualifies for (see instructions): If more (1) First name number Child tax credit Credit for other dependents than four Shady Slim Jr. Son dependents, see instructions and check here 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 172,900 Attach 2a Tax-exempt interest. 2a b Taxable interest 2b Sch. Bit 3a Qualified dividends 3a b Ordinary dividends 3b required. 4a TRA distributions, 4a b Taxable amount 4b 5a Pensions and annuities 5a b Taxable amount 5b 2,000 Standard 6a Social security benefits 6 b Taxable amount. 6b Deduction for 7 Capital gain or (loss). Attach Schedule Dif required. If not required, check here 7 Single or Married filing 8 Other income from Schedule 1, line 10 8 separately. 9 $12,550 Add lines 1, 2b, 36, 45, 56, 66, 7, and 8. This is your total income 9 172,900 Married filing 10 Adjustments to income from Schedule 1, line 26 10 18,000 Jointly or Qualifying 11 Subtract line 10 from line 9. This is your adjusted gross income 11 172,900 widowler $25,100 12a Standard deduction or itemized deductions (from Schedule A) 12a 22,090 Head of b Charitable contributions if you take the standard deduction (see instructions) 12b 2,090 household $18,800 c Add lines 12a and 12b. 12c If you checked 13 Qualified business income deduction from Form 8995 or Form 8995-A 13 any box under Standard 14 Add lines 120 and 13 14 Deduction, 15 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O-. | see Instructions 150,810 0 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 2021)