Question
Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year
Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year (2021). She correctly calculated her AGI. However, she wasnt sure how to compute the rest of her taxable income. She provided the following information with hopes that you could use it to determine her taxable income.
- Shauna paid $4,722 for medical expenses for care related to a broken ankle. Also, Shaunas boyfriend, Blake, drove Shauna (in her car) a total of 115 miles to the doctors office so she could receive care for her broken ankle.
- Shauna paid a total of $3,505 in health insurance premiums during the year (not through an exchange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shauna had Lasik eye surgery last year and paid $3,105 for the surgery (she received no insurance reimbursement). She also incurred $492 of other medical expenses for the year.
- SD withheld $1,905 of state income tax, $7,600 of Social Security tax, and $14,920 of federal income tax from Shaunas paychecks throughout the year.
- In 2021, Shauna was due a refund of $292 for overpaying her 2020 state taxes. On her 2020 state tax return that she filed in April 2021, she applied the overpayment toward her 2021 state tax liability. She estimated that her state tax liability for 2021 will be $2,405.
- Shauna paid $3,305 of property taxes on her personal residence. She also paid $542 to the developer of her subdivision because he had to replace the sidewalk in certain areas of the subdivision.
- Shauna paid a $242 property tax based on the states estimate of the value of her car.
- Shauna has a home mortgage loan in the amount of $241,000 that she secured when she purchased her home. The home is worth about $421,000. Shauna paid interest of $12,720 on the loan this year.
- Shauna made several charitable contributions throughout the year. She contributed stock in ZYX Corporation to the Red Cross. On the date of the contribution, the fair market value of the donated shares was $1,420 and her basis in the shares was $568. Shauna originally bought the ZYX Corporation stock in 2009. Shauna also contributed $342 cash to State University and religious artifacts she has held for several years to her church. The artifacts were valued at $542 and Shaunas basis in the items was $342. Shauna had every reason to believe the church would keep them on display indefinitely. Shauna also drove 200 miles doing church-related errands for her minister. Finally, Shauna contributed $1,305 of services to her church last year.
- Shauna paid $292 in investment advisory fees and another $192 to have her tax return prepared (that is, she paid $192 in 2021 to have her 2020 tax return prepared).
- Shauna is involved in horse racing as a hobby. During the year, she won $2,605 in prize money and incurred $14,200 in expenses. She has never had a profitable year with her horse-racing activities, so she acknowledges that this is a hobby for federal income tax purposes.
- Shauna sustained $2,105 in gambling losses over the year (mostly horse-racing bets) and had only $242 in winnings.
a-2. Complete page 1 of Form 1040 (through taxable income, line 15) and Schedule A assuming her AGI is $128,000.
(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.)
Shaunas address is 19010 N.W. 135th Street, Miami, FL 33054.
Social security numbers:
Shauna Coleman: 111-11-1111
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