Vicky Bethel, age 68, is single and lives at 404 Hobbs Rd., Greensboro, NC, 27403. Her Social Security number is 445-45-6789. Vicky has been divorced from her husband, Bob, for three years. She has a son, Matthew, who is 17 and a daughter, Sheila, who is 18. Matthews social security number is 222-22-2222 and Sheilas is 333-33-3333. Vicky does not want to contribute to the Presidential Election Campaign Fund.

Vicky, a high school principal, earned a salary of $80,000 in 2021. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax.

Vicky has legal custody of her children. The divorce decree provides that she is to receive the dependency deductions for the children Matthew lives with his father during summer vacation. Bob indicates that his expenses for Matthew are $10,500. Vicky can document that she spent $6,500 for Matthews support during 2021. In prior years, Vicky gave a signed Form 8332 to Bob. For this year, she has decided not to do so. She provides all of Sheilas support.

Vickys mother died on Jan. 7, 2021. Vicky inherited assets worth $625,000 from her mother. As the sole beneficiary of her mothers life insurance policy, she received insurance proceeds of $400,000. Her mothers cost basis for the life insurance policy was $120,000. Vickys favorite aunt gave her $12,000 for her birthday in May.

On November 8, 2021, Vicky sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin Walt on December 5th 2018. Walts cost basis for the stock was $26,000 and the stock was worth $23,000 on December 5th. On December 1st 2013 ,Vicki sold Falcon stock for $13,500. She had acquired the stock on July 2nd 2010 for $8,000.

An examination of Vickys records reveals that she received the following:

Interest income of $2500 from first Savings Bank

Groceries valued at $750 from a local grocery store for being the 100 thousandth customer

Qualified dividend income of $1800 from amber

Interest income of $3750 on city of Springfield school bonds

Alimony of $16,000 from Wayne

Distribution from ST partnership. Her distributive share of the partnership income was $5,300.

From her checkbook records she determines that she made the following payments during 2021:

Charitable contributions of $4500 to First Presbyterian Church and $1500 to the American Red Cross (proper receipts obtained)

Mortgage interest on her residence of $7800

Property taxes of $3200 on her residence and $1100 on her car

Estimated federal income taxes of $3800 and estimated state income taxes of 1000

Medical expenses of $5000 for her and $800 for Jason in December her medical insurance policy reimbursed $1500 of her medical expenses

A $1000 parking ticket for parking in a handicap space

Attorneys fees of $500 associated with unsuccessfully contesting the parking ticket

Contribution of $250 to the campaign of a candidate for governor

Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table.

Calculate Vickys net tax payable or refund for 2021. You will need form 1040 and schedules A, B, D, & E.