You will be preparing a 2022 personal income tax return for the fact pattern in lab 2
Note that the forms for 2021, with the exception
of Form 8949. This is because the 2022 forms have not vet been posted by the IRS.
For purposes of this, you will be filling out 2021 forms, but you will use the tax brackels
for 2022 to compute the tax
informatian from us. myself and my spouse will make sig, more maney next year. At what point will the child tax eredit phase out far us? \begin{tabular}{|l|l|l|l|} \hline 1099-INT & & & \\ \hline Payer: Wells Fargo & & & \\ \hline Box 1 & 105 & & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline 1099-DIV & & & \\ \hline Payer: Verizon Co & & & \\ \hline Box 1a: Ordinary Dividends & 500.00 & & \\ \hline Box 1b: Qualified Dividends & 500.00 & & \\ \hline & & & \\ \hline \end{tabular} Note - (from cllent) - receipts available upon request \begin{tabular}{|l|l|} \hline Contributions to Traditional IRA & \\ \hline Taxpayer & 6,000,00 \\ \hline Spouse & 6,000,00 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Estimated federal tax payments & \\ \hline Q1 & 2,500.00 \\ \hline Q2 & 2,500,00 \\ \hline Q3 & 1,000.00 \\ \hline Q4 & 1,000.00 \\ \hline \end{tabular} Last year we received a refund of $50.00 on our tax return. Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) 11 Gain trom Form 4797, Part t, long-term gain from Forms 2439 and 6252: and long-term gain or (oss) from Forms 4684, 6781, and 8224 12 Net long-term gain or (loss) trom partnerships, S comporations, estures, and trusts trom Schedule(x) K1 13 Captal gain distributions. See the instructions 14 Long-term capital loss carryover. Enter the amount. if any, from ine 13 of your Capital Loss Camyover Worksheet in the instructions 15 Net long-term capital gain or (loss). Combine ines 8a through 14 in column (hi. Then, go to Part wir on the back. \begin{tabular}{|l|l} \hline 11 & \\ \hline 12 & \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline \end{tabular} For Paperwork Aeduction Act Notice, see your tax retum instructions. Cor Nen risset Schative D f Form towel amet 16 Combine lines 7 and 15 and enter the resul - If line 16 is a gain, enter the amount from line 16 on Form 1040, 1040-5R, or 1040-1., line 7. Then, go to line 17 beiow. - If lne 16 is a loss, skip lines 17 through 20 below. Then, go to ine 21 . Ass be sure ts complete line 22 - If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, 1040-SR, or 1040-NR, line 7. Then, go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21 , and 90 to line 22 . 18 If you are required to complete the 28% Rate Gain Worksheet (see instructionsi, enter the amount, if any, from line 7 of that worksheet 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet isee instructions), enter the amount, if any, trom line 18 of that worksheet 20 Are ines 18 and 19 both zero or blank and are you not filing Form 498 ?? Yes. Complete the Cualified Dividends and Capital Gain Tax Worksheet in the inatructions for Forms 1040 and 1040-SR, line 16. Dont complete ines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't compiete lnes 21 and 22 below. 21. If tine 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7, the samaller of - The loss on line 16; or - ($3,000), or it married fling separately, ($1,500) Note; When figuring which amount is smaller, treat both amounts as postive numbers. 22 Do you have qualified didends on Form 1040, 1040-5R, or 104D-N, line 3a? Yes. Complete the Gualified Dividends and Capital Gain Tax Worksheet in the inutructions for Forms 1040 and 1040-5R, line 16 . No. Complete the rest of Form 1040, 1040-SR. or 1040-NR. Part 1 Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes . 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F 7 Unemployment compensation . 8 Other income: a Net operating loss b Gambling income . c Cancellation of debt . d Foreign eamed income exclusion from Form 2555 e Taxable Health Savings Account distribution . f Alaska Permanent Fund dividends 9 Jury duty pay h Prizes and awards i. Activity not engaged in for profit income j Stock options k Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property I Olympic and Paralympic medals and USOC prize money (see instructions) m Section 951(a) inclusion (see instructions) n Section 951A(a) inclusion (see instructions) - Section 461(1) excess business loss adjustment p Taxable distributions from an ABLE account (see instructions) - z Other income. List type and amount 9 Total other income. Add lines 8a through 8z 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 \begin{tabular}{|c|l} \hline 1 & \\ \hline 2a & \\ \hline & \\ \hline 3 & \\ \hline 4 & \\ \hline & \\ \hline 5 & \\ \hline 6 & \\ \hline 7 & \\ \hline & \\ \hline \end{tabular} For Paperwork Reduction Act Notice, see your tax return instructions. Cat his. Theme 10 Schadus 1 Torm 10es 2021 Gichedue 1 form 1040 201 Page 2 Part II Adjustments to Income Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (CW) Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box. person is a child but not your dependent Form 1040(2021) Third Party Do you want to allow another person to discuss this retum with the IRS? See Designee instructions Yes, Complete below. No Sign Under penalties of perary, 1 deciare that I have examined tis meturs and accompanying schedules and statements. and to the best of noy knowhedge and Here Joint rotum? See instructions. Keep a copy for your necerds. broker and may even tell you which bor to check. Part I Short-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see instructions). For long-term transactions, see page 2. Note: You may aggregate all short-term transactions reported on Formisi) 1099-8 showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see inatructions). You must check Box. A, B, or C below. Check only one box. if more than one box applies for your shon term transactions, complete a separate Form Be49, page 1, for each applicable box. If you have more thort term trannacticns than will fit on this page for one or more of the boxes, complete as many forms with the same box checked an you need. (A) Short-term transactions reported on Formis) 1000 - B showing basis was reported to the this thee Note abovel) (B) Short-term transactions reponted on Foemis) 1090-B showing basis wasn't reported to the lis (C) Short-term transactions not reported to you on Form 1099-B Amachnort saguese hin 12A Payw 2 atatement will have the same infomation as Fom 1099 - 8 . Either will thow whether your basis (ulually your cost was moorted to the ins by your broker and may even fell you which bou to check. Part II Long-Term. Transactions involving capital assets you heid more than 1 year are generally long-term (see instructions). For short-term transactions, see page 1. Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions). You must cheek Box D, E, or F below. Check only one bex. It more than one bex apples for your long-term trarsactions, complete a separate Fom 8949, poge 2. for each applicable box. if you have more long-tem trarsactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (D) Long-term transactions reported on Formis) 1099-B showing basis was reported to the IPS (see Note abovel) informatian from us. myself and my spouse will make sig, more maney next year. At what point will the child tax eredit phase out far us? \begin{tabular}{|l|l|l|l|} \hline 1099-INT & & & \\ \hline Payer: Wells Fargo & & & \\ \hline Box 1 & 105 & & \\ \hline \end{tabular} \begin{tabular}{|l|r|l|l|} \hline 1099-DIV & & & \\ \hline Payer: Verizon Co & & & \\ \hline Box 1a: Ordinary Dividends & 500.00 & & \\ \hline Box 1b: Qualified Dividends & 500.00 & & \\ \hline & & & \\ \hline \end{tabular} Note - (from cllent) - receipts available upon request \begin{tabular}{|l|l|} \hline Contributions to Traditional IRA & \\ \hline Taxpayer & 6,000,00 \\ \hline Spouse & 6,000,00 \\ \hline \end{tabular} \begin{tabular}{|l|r|} \hline Estimated federal tax payments & \\ \hline Q1 & 2,500.00 \\ \hline Q2 & 2,500,00 \\ \hline Q3 & 1,000.00 \\ \hline Q4 & 1,000.00 \\ \hline \end{tabular} Last year we received a refund of $50.00 on our tax return. Part II Long-Term Capital Gains and Losses-Generally Assets Held More Than One Year (see instructions) 11 Gain trom Form 4797, Part t, long-term gain from Forms 2439 and 6252: and long-term gain or (oss) from Forms 4684, 6781, and 8224 12 Net long-term gain or (loss) trom partnerships, S comporations, estures, and trusts trom Schedule(x) K1 13 Captal gain distributions. See the instructions 14 Long-term capital loss carryover. Enter the amount. if any, from ine 13 of your Capital Loss Camyover Worksheet in the instructions 15 Net long-term capital gain or (loss). Combine ines 8a through 14 in column (hi. Then, go to Part wir on the back. \begin{tabular}{|l|l} \hline 11 & \\ \hline 12 & \\ \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline \end{tabular} For Paperwork Aeduction Act Notice, see your tax retum instructions. Cor Nen risset Schative D f Form towel amet 16 Combine lines 7 and 15 and enter the resul - If line 16 is a gain, enter the amount from line 16 on Form 1040, 1040-5R, or 1040-1., line 7. Then, go to line 17 beiow. - If lne 16 is a loss, skip lines 17 through 20 below. Then, go to ine 21 . Ass be sure ts complete line 22 - If line 16 is zero, skip lines 17 through 21 below and enter -0- on Form 1040, 1040-SR, or 1040-NR, line 7. Then, go to line 22. 17 Are lines 15 and 16 both gains? Yes. Go to line 18. No. Skip lines 18 through 21 , and 90 to line 22 . 18 If you are required to complete the 28% Rate Gain Worksheet (see instructionsi, enter the amount, if any, from line 7 of that worksheet 19 If you are required to complete the Unrecaptured Section 1250 Gain Worksheet isee instructions), enter the amount, if any, trom line 18 of that worksheet 20 Are ines 18 and 19 both zero or blank and are you not filing Form 498 ?? Yes. Complete the Cualified Dividends and Capital Gain Tax Worksheet in the inatructions for Forms 1040 and 1040-SR, line 16. Dont complete ines 21 and 22 below. No. Complete the Schedule D Tax Worksheet in the instructions. Don't compiete lnes 21 and 22 below. 21. If tine 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7, the samaller of - The loss on line 16; or - ($3,000), or it married fling separately, ($1,500) Note; When figuring which amount is smaller, treat both amounts as postive numbers. 22 Do you have qualified didends on Form 1040, 1040-5R, or 104D-N, line 3a? Yes. Complete the Gualified Dividends and Capital Gain Tax Worksheet in the inutructions for Forms 1040 and 1040-5R, line 16 . No. Complete the rest of Form 1040, 1040-SR. or 1040-NR. Part 1 Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes . 2a Alimony received b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F 7 Unemployment compensation . 8 Other income: a Net operating loss b Gambling income . c Cancellation of debt . d Foreign eamed income exclusion from Form 2555 e Taxable Health Savings Account distribution . f Alaska Permanent Fund dividends 9 Jury duty pay h Prizes and awards i. Activity not engaged in for profit income j Stock options k Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property I Olympic and Paralympic medals and USOC prize money (see instructions) m Section 951(a) inclusion (see instructions) n Section 951A(a) inclusion (see instructions) - Section 461(1) excess business loss adjustment p Taxable distributions from an ABLE account (see instructions) - z Other income. List type and amount 9 Total other income. Add lines 8a through 8z 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 \begin{tabular}{|c|l} \hline 1 & \\ \hline 2a & \\ \hline & \\ \hline 3 & \\ \hline 4 & \\ \hline & \\ \hline 5 & \\ \hline 6 & \\ \hline 7 & \\ \hline & \\ \hline \end{tabular} For Paperwork Reduction Act Notice, see your tax return instructions. Cat his. Theme 10 Schadus 1 Torm 10es 2021 Gichedue 1 form 1040 201 Page 2 Part II Adjustments to Income Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (CW) Check only If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying one box. person is a child but not your dependent Form 1040(2021) Third Party Do you want to allow another person to discuss this retum with the IRS? See Designee instructions Yes, Complete below. No Sign Under penalties of perary, 1 deciare that I have examined tis meturs and accompanying schedules and statements. and to the best of noy knowhedge and Here Joint rotum? See instructions. Keep a copy for your necerds. broker and may even tell you which bor to check. Part I Short-Term. Transactions involving capital assets you held 1 year or less are generally short-term (see instructions). For long-term transactions, see page 2. Note: You may aggregate all short-term transactions reported on Formisi) 1099-8 showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 1a; you aren't required to report these transactions on Form 8949 (see inatructions). You must check Box. A, B, or C below. Check only one box. if more than one box applies for your shon term transactions, complete a separate Form Be49, page 1, for each applicable box. If you have more thort term trannacticns than will fit on this page for one or more of the boxes, complete as many forms with the same box checked an you need. (A) Short-term transactions reported on Formis) 1000 - B showing basis was reported to the this thee Note abovel) (B) Short-term transactions reponted on Foemis) 1090-B showing basis wasn't reported to the lis (C) Short-term transactions not reported to you on Form 1099-B Amachnort saguese hin 12A Payw 2 atatement will have the same infomation as Fom 1099 - 8 . Either will thow whether your basis (ulually your cost was moorted to the ins by your broker and may even fell you which bou to check. Part II Long-Term. Transactions involving capital assets you heid more than 1 year are generally long-term (see instructions). For short-term transactions, see page 1. Note: You may aggregate all long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS and for which no adjustments or codes are required. Enter the totals directly on Schedule D, line 8a; you aren't required to report these transactions on Form 8949 (see instructions). You must cheek Box D, E, or F below. Check only one bex. It more than one bex apples for your long-term trarsactions, complete a separate Fom 8949, poge 2. for each applicable box. if you have more long-tem trarsactions than will fit on this page for one or more of the boxes, complete as many forms with the same box checked as you need. (D) Long-term transactions reported on Formis) 1099-B showing basis was reported to the IPS (see Note abovel)
