Milton (SSN 111-22-1111) is 66 years old and unmarried, filing single with no dependents. He had no transactions involving any virtual currency during the year. He had the following income and deductions for 2021:

Complete Milton’s 2021 Form 1040-SR, Schedules 1, 2, 3, A, B and Form 8960. In 2020, Milton had AGI of $200,000 and his income tax liability was $46,000.

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$177,000 Salary Interest income from State Bank 12,000 Dividend income (qualified) 18,000 5,000 Deductible IRA contribution Tax-exempt interest income from municipal bonds Charitable contributions Medical expenses (before the floor) 24,000 27,000 18,000 State income taxes Mortgage interest expense on residence (100% acquisition debt) Interest expense on car loan Real estate taxes on residence Miscellaneous deductions- other (before the floor) Income taxes withheld Estimated tax payments ($2,500 per quarter) $18,000 19,000 3,000 2,000 12,000 20,000 10,000