Question
Using 2021 Tax for Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition,
Using 2021 Tax for
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year.
Keisha Sanders, a divorced single taxpayer and practicing attorney, lives at 9551 Oak Lane in Boise, ID 83709. Her social security number is 412-34-5670 (date of birth 2/27/1977).
Her W-2 contained the following information:
Wages (box 1) = | $ 84,601.55 |
---|---|
Federal W/H (box 2) = | $ 8,898.38 |
Social security wages (box 3) = | $ 84,601.55 |
Social security W/H (box 4) = | $ 5,245.30 |
Medicare wages (box 5) = | $ 84,601.55 |
Medicare W/H (box 6) = | $ 1,226.72 |
In addition, Keisha made alimony payments totaling $10,800 for the year to her former husband Alex, an unemployed mine worker, whose social security number is 412-34-5671. This was in regards to a divorce decree that was completed prior to November 2017 and had not been amended post 2018. She also received a 1099 INT from Idaho State Credit Union in the amount of $254.85.
Keisha also has the following information for her Schedule A itemized deductions:
Interest expense | |
---|---|
Home mortgage (qualified residence interest) | $ 8,100 |
MasterCard (used exclusively for personal expenses and purchases) | 675 |
Car loan (personal use) | 710 |
Student loan interest | 1,750 |
Taxes paid | |
State income tax withheld | 2,950 |
State income tax deficiency (for 2020) | 350 |
Real estate property taxesprincipal residence | 1,700 |
Personal property taxescar | 75 |
Registration feecar | 125 |
Medical expenses | |
Doctors fees | 635 |
Prescription drugs | 260 |
Vitamins and over-the-counter drugs | 250 |
Dental implant to correct a bite problem | 1,600 |
Health club fee | 400 |
Charitable contributions (all required documentation is maintained) | |
Cash: | |
Mosque (made ratably throughout the year and no single contribution was greater than $250) | 3,100 |
United Way | 100 |
PBS annual campaign | 200 |
Property: | |
Greater Boise Goodwillused clothing and household items | |
Date of donation November 15, 2021 | |
Thrift shop value at date of donation | 550 |
Actual purchase price of the items | 1,300 |
Required:
Prepare a Form 1040 with a Schedule 1, a Schedule A, and a Form 8283 for Keisha using any other appropriate worksheets. If manually preparing the return, the Student Loan Interest Deduction worksheet can be found in IRS Publication 970, Tax Benefits for Education. Use the appropriate Tax Tables.
Note: Input all the values as positive numbers. Round your final answers to the nearest whole dollar amount. Instructions can be found on certain cells within the forms. Do not skip rows, while entering Part I of Form 8283.
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