Dividend income (qualified) $177,000 12,000 18,000 Harold J. Milton (SSN 111-22-1111) is 66 years old and...

Transcribed Image Text:

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