Tax Return #1 Freddy and Freida Fuentes Use the following information to complete Freddy and Freida Fuentes' 2021 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. For this first tax return assignment, I will tell you what forms you will need. You need the following forms to complete this tax return: Form 1040, Schedule 1, Schedule A, and Schedule 8. The forms, schedules, and instructions can be found in the Blackboard course under instructor resources or at the IRS web site (www.irs.gov). The instructions for the forms can be helpful and can be found on the IRS web site, additionally, Form Finder in the TR Checkpoint library is a great resource for additional line by line instructions. Freddy and Freida are married and have one child, Irma, who is 19. Irma is currently working at EP Fitness and earned $6,800 from personal training. She is attending UTEP full time, lives at home with her parents, and plans to graduate with a degree in nursing. The Fuentes also support Freddy's father, Ignacio who lives in a small apartment down the street. Ignacio earned $3,400 this year from Bowie Bakery and Freddy pays most of his bills (food, rent, etc) for $2,000 per month (over half of his support). Freddy works as an engineer for SunPort Systems (see W-2 information). He also won a prize of $5,600 in a weightlifting tournament at EP Fitness. Freida is a physical therapist and works at Border Therapy (see W-2 information). She was injured on the job earlier in the year and received $2,900 of worker's compensation income. Freddy and Freida own their home and pay interest on their home loan (balance of $444,000, original loan was on 6/7/2018 for $595,000) and a personal loan to pay for two other cars they own for $56,000. Freddy also paid $2,100 of interest on his student loan that he had when he went to college. Freddy and Freida want to file either married filing jointly or married filing separately, whichever is best for tax purposes. Based on this information and the information below, prepare Freddy and Freida's 2021 Federal tax return. The Fuentes' live at 875 Yucca Ave, El Paso, TX 79922 Freddy's birthday is 1/14/1976 and his Social Security number is 545-16-4009 Freida's birthday is 9/2/1990 and her Social Security number is 544-31-1778 Irma's birthday is 2/11/2002 and her Social Security number is 526-51-8662 Ignacio Fuentes' birthday is 10/14/1957 and his Social Security #is 532-07-4307 The Fuentes' do not have any foreign bank accounts or trusts, nor did they have any transactions with virtual currencies. They received stimulus payments of $5,600 in 2021 and are not eligible for any rebate credits. Do not consider AMT tax for this tax return A $500 credit is available for each dependent claimed on the tax return over 18 years' old (line 21, Form 1040)