Tax Return 1: Linda B. Taylor is a single mom who lives at 671 Lake Drive, Apt. 9, Los Angeles, CA 90024 with her son, John Taylor and her father, Andy Taylor. For 2021, Taylor family had following receipts: 1. Alimony Payments from Kurt Allen 2. Cash Income (side business of making hand woven Berets) 3. Federal Refund (for 2020 Tax Return) 4. Social Security Benefits (Andy Taylor) 5. Life Insurance Proceeds from Andy She also provided following expenses for 2021: 1. Medical Expenses (not covered by Health Insurance) 2. Cash Charitable Contributions - Various Dates 3. Rent Expenses 4. Utilities Expenses 5. Funeral Expenses for Andy 6. California Tax (for 2020) $20,000 $40,000 $2,000 $8,000 $700,000 $6,500 $2,000 $24,000 $1,500 $15,000 $500 Linda was married to Kurt for 10 years. Their divorce was finalized on September 04, 2017 and has never been modified ever since. Per the agreement, Kurt is supposed to pay $20,000 in alimony every year for 7 years from the date of divorce. Alimony amount neither contain separate maintenance payments nor child. support payments. To support herself and her family, Linda started a side business of selling hand woven Berets on May 5th, 2021. All her sales were from online sales. She provided following expenses: 1. Raw Material Purchases (no ending inventory) 2. Supplies 3. Website Fees 4. Advertisement 5. Course (to better her weaving skills) 6. Magazine Subscription (to stay up to date with trends) 7. Bank Fees 8. Internet Expenses $12,000 $5,000 $1,000 $1,500 $3,000 $600 $100 $300 She also bought a weaving equipment worth $7,000 (life 5 years) to help her with the weaving process. She put it to use the same day she started her business. She requested to take bonus depreciation for the equipment.