Comprehensive Problem 5-2B

John Fuji (birthdate June 6, 1982) received the following Form W-2 from his employer related to his job as a manager at a Washington apple-processing plant are reported on his W-2 form (see separate tab).

John's other income includes interest on a Certificate of Deposit reported on a Form 1099-INT (see separate tab).

Also, in accordance with the January 2016 divorce decree he paid $500 per month alimony to his ex-wife (Dora Fuji, Social Security number 573-79-6075) in 2021.

John received a Form 1098 that reports his mortgage interest and property taxes (see separate tab).

John tried his hand at day trading for one week in February 2021. He received a substitute Form 1099-B from his broker. Because the IRS was provided the acquisition date and basis for all trades and none required any adjustments or codes, these can be entered as a summary entry into Schedule D and no Form 8949 needs to be prepared.

During 2021, John paid the following amounts (all of which can be substantiated):

Auto loan interest	1,575
Credit card interest	655
State sales tax (actual exceeds estimated)	1,800
Doctor bills	4,000
Other deductible medical expenses	1,800
Income tax preparation fee	500
Job-hunting expenses	925
Cash charitable donation to the Jonagold Research Center	500

John's employer offers a retirement plan, but John does not participate. Instead, he made a $4,000 contribution to a Roth IRA.

John received a $1,400 EIP in 2021.

Required: Complete John's Form 1040 and Schedule 1, Schedule A, and Schedule D.

• Make realistic assumptions about any missing data.
• John has health coverage for the entire year and he does not want to make a contribution to the presidential election campaign.
• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• If required round any dollar amount to the nearest dollar.

John's W-2 Form

Question Content Area

His earnings and income tax withholding for 2021 for his job as a manager at a Washington apple-processing plant are:

a Employee's social security number 571-78-5974

OMB No. 1545-0008

Safe, accurate, FAST! Use

IRS e ~ file

Visit the IRS website at www.irs.gov/efile

b

Employer identification number (EIN) 34-7654321

1

Wages, tips, other compensation 75,150.00

2

Federal income tax withheld 9,700.00

c

Employer's name, address, and ZIP code Granny Smith Apple Co. 200 Ahtanum Road Yakima, WA 98903

3

Social security wages 75,150.00

4

Social security tax withheld 4,659.30

5

Medicare wages and tips 75,150.00

6

Medicare tax withheld 1,089.68

7

Social security tips

8

Allocated tips

d

Control number

9

10

Dependent care benefits

e

Employee's first name and initial

Last name

Suff.

11

Nonqualified plans

12a

See instructions for box 12

C o d e

John Fuji 468 Bonnie Doon Avenue Yakima, WA 98902

13

Statutory employee	Retirement plan	Third-party sick pay

12b

C o d e

14

Other

12c

C o d e

12d

C o d e

f

Employee's address and ZIP code

15	State	Employer's state ID number	16	State wages, tips, etc.	17	State income tax	18	Local wages, tips, etc.	19	Local income tax	20	Locality name
	WA

Form W-2 Wage and Tax Statement	2021	Department of the TreasuryInternal Revenue Service
Copy BTo Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service.

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