Instructions Form 1040 Schedule 1 Schedule 2 Schedule A Schedule B Schedule C Schedule D Form 8949 v Instructions Note: This problem is for the 2021 tax year. Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1117. Devon did not engage in any virtual currency transactions during the year, and he does not want $3 to go to the Presidential Election Campaign Fund. Devon received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Devon's wife, Ariane, passed away in 2017. Devon's son, Tom, who is age 18, resides with Devon. Tom's Social Security number is 123-45- 6788. Devon owns a sole proprietorship for which he uses the accrual method of accounting and maintains no inventory; the business operates as Devon's Copy Shop, 422 E. Main Street, Albuquerque, NM 87131, IRS business activity code: 453990. His revenues and expenses for 2021 are as follows. Sales revenue $740,000 Cost of goods sold (based on purchases for the year) 405,000 Salary expense 88,000 Rent expense 30,000 Utilities 8,000 Telephone 6,500 Advertising 4,000 Bad debts 5,000SCHEDULE 2 OMB No. 1545-0074 (Form 1040) Additional Taxes 2021 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 02 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number Devon Bishop 111-11-1117 Part I Tax 1 Alternative minimum tax. Attach Form 6251 . . . X 2 Excess advance premium tax credit repayment. Attach Form 8962 . 2 3 Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17 . . X Part II Other Taxes Self-employment tax. Attach Schedule SE . . 439,516 X 5 Social security and Medicare tax on unreported tip income. Attach Form 4137 . . . 5 6 Uncollected social security and Medicare tax on wages. Attach Form 8919 . . . 6 7 Total additional social security and Medicare tax. Add lines 5 and 6 . . 7 8 Additional tax on IRAs or other tax-favored accounts. Attach Form 5329 if required . . . . 8 9 Household employment taxes. Attach Schedule H . . . 9 10 Repayment of first-time homebuyer credit. Attach Form 5405 if required . 10 11 Additional Medicare Tax. Attach Form 8959 . . 11 12 Net investment income tax. Attach Form 8960 . . 12 13 Uncollected social security and Medicare or RRTA tax on tips or group-term life insurance from Form W-2, box 12 13Complete Devon's Schedule A. OMB No. 1545-0074 SCHEDULE A Itemized Deductions (Form 1040) > Go to www.ir5.gov/ScheduleA for instructions and the latest information. 20 21 > Attach to Form 1040 or 1040-SR. Department of the Treasury Attachment Caution: If you are claiming a net qualied disaster loss on Form 4684, see the Internal Revenue Service (99) Sequence No. 07 instructions for line 16. Name(s) shown on Form 1040 or 1040-SR Your social security number Devon Bishop 111-11-1117 Caution: Do not include expenses reimbursed or paid by others. Medical 1 Medical and dental expenses (see instructions) .......... 1 ~/ and Dental 2 Enter amount from Form 1040 or 1040- Expenses SR. line 11 ...................... 2 V 3 Multiply line 2 by 7.5% (0.075) ...................... 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-. . . . . . ........... 4 X Taxes You 5 State and local taxes. Paid a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, check this box ................... > a 53 b State and local real estate taxes (see instructions) ......... 5b c State and local personal property taxes ................ I d Add lines 5a through 5c ............................. 5d e Enter the smaller of line 5d or $10,000 ($5,000 if married ling separately) ............................ 5e 6 other taxes. List type and amount > ______________ ________________________________ 6 7 Add lines 5e and 6 ................................... Interest 8 Home mortgage interest and points. If you didn't use all of your _ home mortgage loan(s) to buy, build, or improve your home, see You Paid . . . Instructions and check this box ................ > D Caution' a Home mortgage interest and points reported to you on Form 1098. See instructions if limited .......................... 8a Your mortgage interest b Home mortgage interest not reported to you on Form 1098. See deduction may instructions if limited. If paid to the person from whom you be limited (see bought the home, see instructions and show that person's name, instructions). identifying no., and address > __________________ ________________________________ 8b c Points not reported to you on Form 1098. See instructions for special rules .................................... 81: d Mortgage insurance premiums (see instructions) .............. 8d 2 Add lines 8a through 8d ............................ 8e 9 Investment interest. Attach Form 4952 if required. See instructions. 9 10 Add lines 8e and 9 ....................................... Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions ................................ 11 Tax Return Project #3 Print Item 12 other than by cash or check. If you made any gift of $250 or more, Caution: see instructions. You must attach Form 8283 if over $500 12 If you made a gift and got a benefit for it, 14 Add lines 11 throu h 13 ................................................ see instructions. 9 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualied disaster The Losses losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions. 15 13 Carryover from prior year .......................... 13 w/ [:i V Other 16 otherfrom list in instructions. List type and amount > ____________________ E V Itemized Deductions 16 Total 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on _ Form 1040 or 1040-SR, line 12a ......................................... 17 X Itemlzed _ 18 If you elect to itemize deductions even though they are less than your standard deduction, Deductlons . check this box ................................................. > El BAA For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1o4o-sn. Schedule A (Form 1040) 2021 Schedule B Complete Devon's Schedule B. SCHEDULE B OMB No. 1545-0074 Interest and Ordinary Dividends (Form 1040) 20 2 1 Department of the Treasury > Go to www.1rs.gov/ScheduleB for Instructions and the latest Information. Attachment Internal Revenue Service (99) ' Attach to Form 104 " 1040'5R' Sequence No. 08 H\"! \"A\" ' 3 more Check Mv Work uses remainino. Tax Return Project #3 ' Print Item OMB No. 1545-0074 2021 Attachment Sequence No. 09 SCHEDULE C (Form 1040) Profit or Loss From Business (Sole Proprietorship) > Go to www.irs.gov/ScheduIeC for instructions and the latest information. > Attach to Form 1040, 1040SR, 1040-NR, or 1041; partnerships must generally file Form 1065. Department of the Treasury Internal Revenue Service (99) Name of proprietor Social security number (SSN) Devon Bishop 111-11-1117 A Principal business or profession, including product or service (see instructions) B Enter code from instructions Devon's Copy Shop > 453990 C Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) o E Business address (including suite or room no.) > 422 East Main Street City, town or post ofce, state, and ZIP code Albuquerque NM 87131 Accounting method: (1) D Cash (2) a Accrual (3) D Other (specify) > _______________________________ G Did you "materially participate" in the operation of this business during 2021? If "No," see instructions for limit on Yes D No losses. H If you started or acquired this business during 2021, check here ............................. b D I Did you make any payments in 2021 that would require you to file Form(s) 1099? See instructions . . . D Yes No J If "Yes," did you or will you file required Form(s) 1099? .......................................... D Yes D No m 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked ............... > D 1 2 Returns and allowances ....................................................... 2 3 Subtract line 2 from line 1 ....................................................... 3 m . M-.- A\"-.. .........,. H--- mm.-." Tax Return iject #3 Print Item 11 Contract labor (see instructions) a 12 Depletion ............... 4 Cost of goods sold (from line 42) ................................................. 4 5 Gross profit. Subtract line 4 from line 3 ........................................... 5 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) ....... 6 7 Gross income. Add lines 5 and 6 .............................................. b 7 lalil Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising ............... 8 18 Office expense (see instructions) . . . . 18 9 Car and truck expenses (see 19 Pension and prot-sharing plans . . . . ? instructions) ............. 9 20 Rent or lease (see instructions): . . . . 1o Commissions and fees ..... 10 a Vehicles, machinery, and equipment 20a 11 b Other business property ......... 20b 12 21 Repairs and maintenance ......... 21 13 Depreciation and section 179 22 Supplies (not included in Part III) . . . expense deduction (not included 23 Taxes and licenses ............ 23 in Part 111) (see instructions) . . . 13 / 24 Travel and meals: ............ 14 Employee benefit programs a Travel .................... 24a (other than on line 19) ...... 14 b Deductible meals (see 15 Insurance (other than health) . . 15 instructions) ................ 24b 16 Interest (see instr.): 25 Utilities ................. 25 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits) . . . 26 b Other .................. 16b 27a Other expenses (from line 48) ..... 27a Tax Return Project #3 ' Print Item 32 33 BAA For Paperwork Reduction Act Notice, see the separate instructions. - If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. } . If a loss, you must go to line 32. If you have a loss, check the box that describes your investment in this activity. See instructions. - If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3 (or Form 104o-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions). Estates } and trusts, enter on Form 1041, line 3. - If you checked 32b, you must attach Form 6198. Your loss may be limited. Method(s) used to b Other .................. 16b 27a Other expenses (from line 48) ..... 27a 17 Legal and professional services 17 b Reserved for future use ....... 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a ............ r 28 29 Tentative profit or (loss). Subtract line 28 from line 7 ................................... 29 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplied method. See instructions. Simplified method filers only: enter the total square footage of (a) your home: and (b) the part of your home used for business: . Use the Simplied Method Worksheet in the instructions to figure the amount to enter on line 30 ........................................... 30 31 Net profit or (loss). Subtract line 30 from line 29. 31 32a D All investment is at risk. 32b D Some investment is not at risk. Schedule C (Form 1040) 2021 Schedule C (Form 1040) 2021 Devon Bishop 111-11-1117 Page 2 IEIHI Cost of Goods Sold (see instructions) value closing inventory: a D Cost b El Lower of cost or market c El Other (attach explanation) SCHEDULE D Capital Gains and Losses 0MB N- 1545'007\" (Form 1040) 2021 > Attach to Form 1040, 1040-SR, or 1040-NR. Department 9f the Treasury > Go to www.irs.gov/ScheduleD for instructions and the latest information. Attachment Internal Revenue Service (99) > Use Form 8949 to list your transactions for lines 1b, 2, 3, 8b, 9, and 10. sequence N' 12 Name(s) shown on return Your social security number Devon Bishop 111-11-1117 Did you dispose of any investment(s) in a qualied opportunity fund during the tax year? D Yes No If "Yes," attach Form 8949 and see its instructions for additional requirements for reporting your gain or loss. m Short-Term Capital Gains and Losses - Generally Assets Held One Year or Less (see instructions) See instructions for how to figure the amounts to enter on the ( ) (h) Gain or lines below. . 9 (loss) Adjustments to _ Subtract column (d) (e) gain or loss from (e) from column This form may be easier to complete if you round off cents to Proceeds (sales COSt (0" other Form(s) 3949. Part (d) and combine rice basis I line 2 column whole dollars. P ) ) l I the result with (9) column (9) 1a Totals for all short-term transactions reported on Form 1099-5 for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b . . . . 1b Totals for all transactions reported on Form(s) 8949 with Box A checked ............................... 2 Totals for all transactions reported on Form(s) 8949 with Box B checked ............................... 401000 I '/ | 200,000 ' X ' 0 I '/ | 160,000 X 3 Totals for all transactions reported on Form(s) 8949 with Tax Return Project #3 I Print Item 3 Totals for all transactions reported on Form(s) 8949 with Box C checked ............................... 4 Short-term gain from Form 6252 and short-term gain or (loss) from Forms 4684, 6781, and 8824 ..... 4 5 Net short-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 5 6 Short-term capital loss carryover. Enter the amount, if any, from line 8 of your Capital Loss carryover Worksheet in the instructions ............................................. 6 ( ) 7 Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). If you have any long-term capital gains or losses, go to Part 11 below. Otherwise, go to Part III on the back ........ 7 m Long-Term Capital Gains and Losses Generally Assets Held More Than One Year (see instructions) See instructions for how to figure the amounts to enter on the ( ) (h) Gain or lines below. I 9 (loss) Adjustments to . Subtract column (d) (e) gain or loss from (e) from column This form may be easier to complete if you round off cents to Proceeds (sales C05! (or other Form(s) 8949, (d) and combine whole dollars. price) basis) Part II, line 2, . the result With column (9) column (9) 8a Totals for all long-term transactions reported on Form 1099- B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b . . . . 8b Totals for all transactions reported on Form(s) 8949 with Box D checked ............................... 9 Totals for all transactions reported on Form(s) 8949 with Box a checked ............................... l 72,000 | x l 106.500 l x I 5,000 | x l 49.500 | x 10 Totals for all transactions reported on Form(s) 8949 with Box F checked ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, l 480,000 | x l 180,000 | ~/ I o | x | 300,000 | x I Tax Return Project #3 Print Item 8b Totals for all transactions reported on Form(s) 8949 with Box D checked ............................... 9 Totals for all transactions reported on Form(s) 8949 with Box E checked IIIIIIIIIIIIIIIIIIIIIIIIIIIIIII | 72,000 i x l 106,500 | x l 5,000 | x | 49,500 | x 10 Totals for all transactions reported on Form(s) 8949 with Box F checked ............................... I 480100\" ' X ' 180,000 I '/ ' 0 I X | 300,000 I X 11 Gain from Form 4797, Part I; long-term gain from Forms 2439 and 6252; and long-term gain or (loss) from 11 x Forms 4684, 6781, and 8824 ............................................... : 12 Net long-term gain or (loss) from partnerships, S corporations, estates, and trusts from Schedule(s) K-1 12 13 Capital gain distributions. See the instrs ............................................... 13 14 Long-term capital loss carryover. Enter the amount, if any, from line 13 of your Capital Loss Carryover Worksheet in the instructions ............................................. 14 ( ) 15 Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Then, go to Part III on the back .................................................................. 15 x BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule D (Form 1040) 2021 If line 16 is a gain, enter the amount from line 16 on Form 1040, 1040SR, or 1040-NR, line 7. Then, go to line 17 below. If line 16 is a loss, skip lines 17 through 20 below. Then, go to line 21. Also be sure to 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? Schedule D (Form 1040) 2021 Devon Bishop 111-11-1117 Page 2 m summary 16 Combine lines 7 and 15 and enter the result ............................................ 16 Tax Return Project #3 Print Item Telephone 6,500 Advertising 4,000 Bad debts 5,000 Depreciation* 21,000 Health insurance** 26,000 Accounting and legal fees 7,000 Supplies 1,000 *New office equipment ($21,000); Devon chose to use the immediate expense election. ** $18,000 for employees and $8,000 for Devon. Other income received by Devon includes the following. Dividend income (qualified dividends) : Swan, Inc. $10,000 Wren, Inc. 2,000 Interest income: First National Bank 11,000 Second City Bank 2,500 County of Santa Fe, NM bonds 17,000 During the year, Devon and his sole proprietorship were involved in the following property transactions. Stock transactions were reported to Devon on Form 1099-B; basis was not reported to the IRS. a. Sold Blue, Inc. stock for $45,000 on March 12, 2021. He had purchased the stock on September 5, 2018, for $50,000. b. Received an inheritance of $300,000 from his uncle, Henry. Devon used $200,000 to purchase Green, Inc. stock on May 15, 2021, and invested $100,000 in Gold, Inc. stock on May 30, 2021. c. Received Orange, Inc. stock worth $9,500 as a gift from his aunt, Jane, on June 17, 2021. Her adjusted basis for the stock was $5,000. No Federal gift taxes were paid on the transfer. Jane had purchased the stock on April 1, 2015. Devon sold the stock on July 1, 2021, for $22,000. d. On July 15, 2021, Devon sold one-half of the Green, Inc. stock for $40,000. e. Devon was notified on August 1, 2021, that Yellow, Inc. stock he purchased from a colleague on September 1, 2020, for $52,500 had become worthless. Although he understood that investing in Yellow was risky, Devon did not anticipate that the corporation would declare bankruptcy.17 18 19 20 21 22 Are lines 15 and 16 both gains? D Yes. Go to line 18. D No. Skip lines 18 through 21, and go to line 22. If you are required to complete the 28% Rate Gain Worksheet (see instructions), enter the amount, if any, from line 7 of that worksheet .......................................... If you are required to complete the Unrecaptured Section 1250 Gain Worksheet (see instructions), enter the amount, if any, from line 18 of that worksheet ................................. Are lines 18 and 19 both zero or blank and are you not ling Form 4952? D Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 16. Don't complete lines 21 and 22 below. D No. Complete the Schedule D Tax Worksheet in the instructions. Don't complete lines 21 and 22 below. If line 16 is a loss, enter here and on Form 1040, 1040-SR, or 1040-NR, line 7, the smaller of: o The loss on line 16; or - ($3,000), or if married filing separately, ($1,500) } """""""""""" Note: When figuring which amount is smaller, treat both amounts as positive numbers. Do you have qualied dividends on Form 1040, 1040-SR, or 1040NR, line 3a? Yes. Complete the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Forms 1040 and 1040-SR, line 16. Check My Work 3 more Check My Work uses remaining, 18 19 21 term transactions, see page 2. Short-Term. Transactions involving capital assets you held 1 year or less are generally shortterm (see instructions). For long- Note: You may aggregate all short-term transactions reported on Form(s) 1099-5 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 instructions). You must check Box A, B, or C below. Check only one box. If more than one box applies for your short-term transactions, complete a separate Form 8949, page 1, for each applicable box, If you have more short-term transactions 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 (A) Short-term transactions reported on Form(s) 1099-5 showing basis was reported to the IRS (see Note above) (3) Short-term transactions reported on Form(s) 1099-5 showing basis wasn't reported to the IRS Cl (C) Short-term transactions not reported to you on Form 10995 1 Adjustment, if any, to (h) gain or loss. If you enter an _ , Gain or (loss). (e) amount In column (9), enter _ Subtract Cost or other a code in column (f). See , _ _ column (e) (a) (c) (d) baSlS. See the the separate Instructions. _ _ (b) from column Description of property _ Date sold or Proceeds (sales Note below Date acqu1red , , (f) (d) and (Example: 100 shares disposed of price) (see and see (9) , (Mo., day, yr.) , , , Code(s) combine the XYZ Co.) (Mo., day, yr.) instructions) Column (e) in Amount of _ from result With the separate . , adjustment column (9) instructions instructions Print Item in (F) Long-term transactions not reported to you on Form 1099-B Adjustment, if any, to 1 _ (in gain or loss. If you enter an . I Gain or (loss). (e) amount In column (9), enter , Subtract Cost or other a code in column (f). See , . _ column (e) (a) (c) (d) baSIS. See the the separate instructions. I I (b) from column Description of property I Date sold or Proceeds (sales Note below Date acquired I I (f) (d) and (Example: 100 shares disposed of price) (see and see (9) I (Mo., day, yr.) I . I Code(s) combine the XYZ Co.) (Mo., day, yr.) instructions) Column (e) in Amount of I from result With the separate adjustment column (9) instructions instructions Orange, Inc. 04/01/15 07/01/21 Yellow, Inc. 09/01/20 12/31/21 S] Blue, Inc. 09/05/18 03/12/21 Print Item You must check Box D, E, or F below. Check only one box. If more than one box applies for your long-term transactions, complete a separate Form 8949, page 2, for each applicable box. If you have more longvterm transactions 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. :1 (D) Longterm transactions reported on Form(s) 1099B showing basis was reported to the IRS (see Note above) D (E) Long-term transactions reported on Form(s) 1099B showing basis wasn't reported to the IRS izi (F) Long-term transactions not reported to you on Form 1099-B 1 Adjustment, if any, to gain or loss. If you enter an amount in (h) column (9), enter a code in Gain or (loss). ( ) ( ) (d) C t (:3 b . column (f). See the separate Subtract column (e) a c as or 0 er aSlS. . . _ ' (b) instructions. from column (d) Description of property _ Date sold or Proceeds (sales See the Note below _ Date acquired _ _ (f) and combine the (Example: 100 shares disposed of price) (see and see Column (e) (g) , (Mo., day, yr.) . _ . Code(s) result With column XYZ Co.) (Mo., day, yr.) instructions) in the separate Amount of ( ) instructions from adjustment 9 instructions Condominium 12/31/01 12/31/21 480,000 x 180,000 / H [j x 300,000 x Tax Return Project #3 E Print Item SCHEDULE SE OMB No. 1545-0074 Self-Employment Tax (Form 1040) 2021 Department of the Treasury Go to www.irs.gov/ScheduleSE for instructions and the latest information. Attachment Internal Revenue Service (99) Attach to Form 1040, 1040-SR, or 1040-NR. Sequence No. 17 Name of person with self-employment income (as shown on Form 1040, Social security number of person 1040-SR, or 1040-NR) with self-employment income 111-11-1117 Devon Bishop Part I Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more of other net earnings from self-employment, check here and continue with Part I . . . 0 Skip lines la and 1b if you use the farm optional method in Part II. See instructions. 1a If a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A . . b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 1b Skip line 2 if you use the nonfarm optional method in Part II. See instructions. 2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 2 157,500 X 3 Combine lines la, 1b, and 2 . . 3 157,500 X 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3 . . . . 4a 14,545,125 X Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. h If vou elect one or both of the ontional methods enter the total of lines 15 and 17 here 4bTax Return Project #3 Print Item b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here ........ 4b c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -0- and continue .................... V dc X 5a Enter your church employee income from Form W-2. See instructions for denition of church employee income ............................... 53 b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0- .............................. 5,, E] ~/ 6 Add lines 4c and Sb ............................................................... 5 X 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2021 ............................ 7 1421800 '/ 83 Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-Z) and railroad retirement (tier 1) compensation. If $142,800 or more, skip lines 8b a through 10, and go to line 11 .................................... 8a b Unreported tips subject to social security tax from Form 4137, line 10 ........ 8b c Wages subject to social security tax from Form 8919, line 10 .............. 8c d Add lines 8a, 8b, and 8c ........................................................... 8d 9 Subtract line 8d from line 7. If zero or less, enter ~0~ here and on line 10 and go to line 11 ......... D 9 142,800 v/ 10 Multiply the smaller of line 6 or line 9 by 12.4% (0.124) .................................... 10 17,707 X 11 Multiply line 6 by 2.9% (0.029) ...................................................... 11 421,809 X 1'2 Self-employment tax. Add lines 10 and 11. Enter here and on Schedule 2 (Form 1040), line 4 ...... 12 X 13 Deduction for one-half of self-employment tax. Multiply line 12 by 50% (0.50). Enter here and on Schedule 1 (Form 1040), line 15 .................................................. 13 \"9:753 X m Optional Methods To Fioure Net Earnincls (see instructions) _ SCHEDULE 8812 Credits for Qualifying Children 0MB N' 1545'007\" (Form 1040) and Other Dependents 2021 Department of the Treasury r Attach to Form 1040, 1o4o-sn, or 1040-NR. Attac'iment Internal Revenue Service (99) > Go to www.irs.gov/ScheduI98812 for instructions and the latest information. Sequence No. 47 Name(s) shown on return Your social security number Devon Bishop 111-11-1117 m Child Tax Credit and Credit for other Dependents 1 Enter the amount from line 11 of your Form 1040, 1040-SR, or 1040NR ........................... 1_ 2a Enter income from Puerto Rico that you excluded ........................ 23 b Enter the amounts from lines 45 and 50 of your Form 2555 ................. 2b 9 Enter the amount from line 15 of your Form 4563 ....................... 2c c d Add lines Za through 2: ............................................................. 3 Add lines 1 and 2d .............................................. . . . . ............... 4a Number of qualifying children under age 18 with the required social security number 43 b Number of children included on line 43 who were under age 6 at the end of 2021 . 4b Subtract line 4b from line 4a ...................................... c 4:: 5 If line 4a is more than zero, enter the amount from the Line 5 Worksheet; otherwise, enter -0- ......... 6 Number of other dependents, including any qualifying children who are not under age 18 or who do not have the required social security number .............. 6 E X Tax Return Project #3 Print Item Caution: Do not include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident alien. Also, do not include anyone you included on line 4a. 7 Multiply line 6 by $500 .............................................................. 7 E] x 8 Add lines 5 and 7 .................................................................. s E] x 9 Enter the amount shown below for your ling status. 0 Married ling jointly$400,000 o All other ling statuses$200,000 } .............................................. 9 200,000 v/ 10 Subtract line 9 from line 3. o If zero or less, enter -0-. o If more than zero and not a multiple of $1,000, enter the next multiple of } $1,000. For example, if the result is $425, enter $1,000; if the result is $1,025, enter $2,000, etc. .............. 10 [: X 11 Multiply line 10 by 5% (0.05) ......................................................... 11 12 Subtract line 11 from line 8. If zero or less, enter -0- ........................................ 12 E] X 13 Check all the boxes that apply to you (or your spouse if married ling jointly). A Check here if you (or your spouse if married filing jointly) have a principal place of abode in the United States for more than half of 2021 ................................................... Check here if you (or your spouse if married filing jointly) are a bona de resident of Puerto Rico for 2021 El Part I-B Filers Who Check a Box on Line 13 Caution: If you did not check a box on line 13, do not complete Part I-B; instead, skip to Part I-C. 14a Enter the smaller of line 7 or line 12 .................................................... 14a E] X b Subtract line 14a from line 12 ......................................................... 14b b Subtract line 14a from line 12 ......................................................... 14h c If line 14a is zero, enter 0; otherwise, enter the amount from the Credit Limit Worksheet A .......... 14c 15,255 '/ d Enter the smaller of line 14a or line 14c .................................................. 14d 0 X e Add lines 14b and 14d .............................................................. 142 0 X f Enter the aggregate amount of advance child tax credit payments you (and your spouse if filing jointly) received for 2021. See your Letter(s) 6419 for the amounts to include on this line. If you are missing Letter 6419, see the instructions before entering an amount on this line ................................ 14f X Caution: If the amount on this line doesn't match the aggregate amounts reported to you (and your spouse if ling jointly) on your Letter(s) 6419, the processing of your return will be delayed. 9 Subtract line 14f from line Me. If zero or less, enter -0- on lines 149 through 14i and go to Part III ........ 149 X h Enter the smaller of line 14d or line 149. This is your credit for other dependents. Enter this amount on line 19 of your Form 1040, 1040-SR, or 1040-NR ........................................ 14h X i Subtract line 14h from line 149. This is your refundable child tax credit. Enter this amount on line 28 of your Form 1040, 1040-SR, or 1040-NR ............................................. 14i X For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 8812 (Form 1040) 2021 Form 8995 Complete Devon's Form 8995 for 2021. Form 8995 Qualified Busmess Income Deduction Simplified Computation Department of the Treasury > Attach to your tax return. OMB No. 1545-2294 2021 Attachment OMB No. 1545-0172 2021 Attachment Sequence No. 179 Form 4562 Depreciation and Amortization (Including Information on Listed Property) > Attach to your tax return. > Go to www.irs.gov/Form4562 for instructions and the latest information. Department of the Treasury Internal Revenue Service (99) Identifying number 111-11-1117 Name(s) shown on return Devon Bishop Business or activity to which this form relates Schedule C - Devon Bishop m Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part I. 1 Maximum amount (see instructions) .................................................... 1 X 2 Total cost of section 179 property placed in service (see instructions) ............................. 2 C] X 3 Threshold cost of section 179 property before reduction in limitation (see instructions) ................ 3 C] X 4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- ........................ 4 [3 5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0-. If married filing separately, see instructions .............................................................. 5 [: X . . (b) Cost (business use 6 (a) Description of property (c) Elected cost only) 7 Listed property. Enter the amount from line 29 ..................... 7 E '1 a ma. \"MM w. \"Mm\" i-m \"mm, \"A \"A..-\" i- M...\" m \"M, E \"A -, | A #1 .. Tax Return Project #3 Prim Item d. On July 15, 2021, Devon sold one-half of the Green, Inc. stock for $40,000. e. Devon was notied on August 1, 2021, that Yellow, Inc. stock he purchased from a colleague on September 1, 2020, for $52,500 had become worthless. Although he understood that investing in Yellow was risky, Devon did not anticipate that the corporation would declare bankruptcy. f. On August 15, 2021, Devon received a parcel of land in Phoenix worth $220,000 in exchange for a parcel of land he owned in Tucson. Because the Tucson parcel was worth $245,000, he also received $25,000 cash. Devon's adjusted basis for the Tucson parcel was $210,000. He originally purchased it on September 18, 2018. 9. On December 1, 2021, Devon sold the condominium in which he had been living for the past 20 years (1844 Lighthouse Lane, Albuquerque, NM 87131) and moved into a rented townhouse. The sales price was $480,000, selling expenses were $28,500, and repair expenses related to the sale were $9,400. Devon purchased the condominium for $180,000. Devon's potential itemized deductions, exclusive of the aforementioned information, are as follows. Medical expenses (before the 7.5%-ofAGI floor) $9,500 Property taxes on residence 5,800 State income taxes 4,000 o Charitable contributions 10,000 Mortgage interest on residence (First National Bank) 9,900 Sales taxes paid 5,000 During the year, Devon makes estimated Federal income tax payments of $35,000. Required: Compute Devon's Federal income tax payable or refund due for 2021 (assuming that he makes any available elections that will reduce the tax), and complete his tax return using appropriate forms and schedules and the Qualified Dividends and Capital Gain Tax Worksheet. c Make realistic assumptions about any missing data. o If an amount box does not require an entry or the answer is zero, enter "0". 0 Enter all amounts as positive numbers, unless instructed otherwise. 0 It may be necessary to complete the tax schedules before completing Form 1040. 0 when computing the tax liability, do not round your immediate calculations. If required round your nal answers to the nearest dollar. 0 Use the 2021 tax rate schedule provided. Do not use the Tax Tables. 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 .................. 9 Tentative deduction. Enter the smaller of line 5 or line 8 ...................................... 1O Carryover of disallowed deduction from line 13 of your 2020 Form 4562 ........................... 10 11 Business income limitation. Enter the smaller of business income (not less than zero) or line 5. See instrs. 11 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 ................ 12 13 Carryover of disallowed deduction to 2022. Add lines 9 and 10, less line 12. > 13 [: X Note: Don't use Part II or Part III below for listed property. Instead, use Part V. m Special Depreciation Allowance and other Depreciation (Don't include listed property. See instructions.) 14 Special depreciation allowance for qualied property (other than listed property) placed in service during the tax year. See instructions ............................................................... 14 15 Property subject to section 168(f)(1) election ............................................... 15 16 Other depreciation (including ACRS) ...................................................... 16 m MACRS Depreciation (Don't include listed property. See instructions.) Section A 17 MACRS deductions for assets placed in service in tax years beginning before 2021 ..................... 17 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here ............................................................ > El Section B Assets Placed in Service During 2021 Tax Year Using the General Depreciation System (c) Basis for . , . (b) Month and depreciation (a) Classuficatlon of _ _ _ (d) Recovery year placed In (busnness/Investment 7 (e) Convention (f) Method (9) Depreciation Tax Return Project #3 Print Item d 10-year property e 15-year property f 20-year property g 25-year property 25 yrs S/L h Residential rental 27.5 yrs MM S/L pmpem' 27.5 yrs MM S/L i Nonresidential real 39 yrs MM S/L pmpem/ MM S/L Section C Assets Placed in Service During 2021 Tax Year Using the Alternative Depreciation System 20a Class life S/L b 12-year 12 yrs S/L a c 30-year 30 yrs MM S/L d 40-year 40 yrs MM S/L E Summary (See instructions.) Listed property. Enter amount from line 28 ................................................ 21 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (9), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations see instructions .......... 22 [: X 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs ...................... BAA For Paperwork Reduction Act Notice, see separate instructions. Form 4562 (2021) Tax Return Project #3 Print Item \\\\ Qualified Dividends and Capital Gain Tax WorksheetLine 16 Keep for Your Records N Before you begin: :1 See the earlier instructions for line 16 to see if you can use this worksheet to gure your tax. I/ Before completing this worksheet, complete Form 1040 through line 15. V If you do not have to le Schedule D and you received capital gain distributions, be sure you checked the box on Form 1040 or 1040-SR, line 7. 1. Enter the amount from Form 1040 or 1040SR, line 15. However, if you are filing Form 2555 (relating to foreign earned income), enter the amount from line 3 of the Foreign Earned Income Tax Worksheet (Taxable income) 1. 2. Enter the amount from Form 1040 or 1040-SR, line 3a* ........ 2. 3. Are you filing Schedule D?* o D Yes Enter the smaller of line 15 or 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0- 3. X D No Enter the amount from Form 1040 or 1040SR, line 7. 4. Add lines 2 and 3 ................................. 4. x 5. Subtract line 4 from line 1. If zero or less, enter -0- .......................... 5. 6. Enter: $40,400 if single or married ling separately, $80,800 if married ling jointly or qualifying widow(er), ........... 6. $54,100 if head of household. 7. Enter the smaller of line 1 or line 6 ...................................... 7. 8. Enter the smaller of line 5 or line 7 ...................................... 8- 40,400 x Tax Return Project #3 Prim item $80,800 if married filing jointly or qualifying widow(er), ........... 6. 40,400 X $54,100 if head of household. 7. Enter the smaller of line 1 or line 6 ...................................... 7. W X 8. Enter the smaller of line 5 or line 7 ...................................... 8. W X 9. Subtract line 8 from line 7. This amount is taxed at 0% ....................... 9. 70 10. Enter the smaller of line 1 or line 4 ...................................... 10. W X 11. Enter the amount from line 9 ......................................... 11. 0 12. Subtract line 11 from line 10 .......................................... 12. W x 13. Enter: a $445,850 if single, $250,800 if married ling separately, ___________ 13_ T1350 X $501,600 if married ling jointly or qualifying widow(er), $473,750 if head of household. 14. Enter the smaller of line 1 or line 13 ..................................... 14. m ,/ 15. Add lines 5 and 9 ................................................. 1s. m x 16. Subtract line 15 from line 14. If zero or less, enter -0- ........................ 16. m X 17. Enter the smaller of line 12 or line 16 .................................... 17. W x 13. Multiply line 17 by 15% (0.15) ......................................................... . . 13. x 19. Add lines 9 and 17 ................................................ 19. W x Tax Return Project #3 Print Item 14. Enter the smaller of line 1 or line 13 ..................................... 14. 15. Add lines 5 and 9 ................................................. 15. 16. Subtract line 15 from line 14. If zero or less, enter -0- ........................ 16. 17. Enter the smaller of line 12 or line 16 .................................... 17. 1s. Multiply line 17 by 15% (0.15) ........................................................... 13. x 19. Add lines 9 and 17 ................................................ 19. x 20. Subtract line 19 from line 10 .......................................... 20. E] ~/ 21. Multiply line 20 by 20% (0.20) ........................................................... 21. [3 9 22. Figure the tax on the amount on line 5. If the amount on line 5 is less than $100,000, use the Tax Table to gure the tax. If the amount on line 5 is $100,000 or more, use the Tax Computation Worksheet ........... 22. 23. Add lines 18, 21, and 22 .............................................................. 23. 24. Figure the tax on the amount on line 1. If the amount on line 1 is less than $100,000, use the Tax Table to gure the tax. If the amount on line 1 is $100,000 or more, use the Tax Computation Worksheet ........... 24. 25. Tax on all taxable income. Enter the smaller of line 23 or 24. Also include this amount on the entry space on Form 1040 or 1040-SR, line 16. If you are ling Form 2555, don't enter this amount on the entry space on Form 1040 or 1040-SR, line 16. Instead, enter it on line 4 of the Foreign Earned Income Tax Worksheet ............ ................... 25. -x * If you are ling Form 2555, see the footnote in the Foreign Earned Income Tax Worksheet before completing this line. 2021 Tax Rate Schedules SingleSchedule X Head of householdSchedule Z If taxable of the If taxable of the income is: But not amount income is: But not amuunt Over over The tax is: over Over over The tax is: over $0 $9,950 ......10/0 $0 $0 $14,200 ......10/o $0 9,950 40,525 s 995.00 + 12% 9,950 14,200 54,200 $ 1,420.00 + 12% 14,200 40,525 86,375 4,664.00 + 22% 40,525 54,200 86,350 6,220.00 + 22% 54,200 86,375 164,925 14,751.00 + 24lo 86,375 86,350 164,900 13,293.00 + 24lo 86,350 164,925 209,425 33,603.00 + 32/0 164,925 164,900 209,400 32,145.00 + 32%: 164,900 209,425 523,600 47,843.00 + 35/o 209,425 209,400 523,600 46,385.00 + 35%: 209,400 523,600 ...... 157,804.25 + 37% 523,600 523,600 ...... 156,355.00 + 37% 523,600 Married filing jointly or Qualifying widow(er)Schedule Y-1 Married ling separatelySchedule Y-2 If taxable of the If taxable of the income is: But not amount income is: But not amount Over over The tax is: over Over over The tax is: over $ 0 $ 19,900 ...... 10lo $ 0 $ 0 $ 9,950 ...... 10lo $ 0 19,900 81,050 $ 1,990.00 + 12/0 19,900 9,950 40,525 $ 995.00 + 12 9,950 81,050 172,750 9,328.00 + 22% 31,050 40,525 86,375 4,664.00 + 22% 40,525 172,750 329,850 29,502.00 + 24ln 172,750 86,375 164,925 14,751.00 + 240/0 86,375 329,850 418,850 67,206.00 + 32%: 329,850 164,925 209,425 33,603.00 + 32/o 164,925 418,850 628,300 95,686.00 + 35/0 418,850 209,425 314,150 47,843.00 + 35/o 209,425 628,300 ...... 168,993.50 + 37/o 628,300 314,150 ...... 84,496.75 + 37%: 314,150 Form Department of the TreasuryInternal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2021 OMB No. 1545-0074 IRS Use Only Filing Status Single v X Your first name and middle initial Last name Your social security number Devon Bishop 111-11-1117 If joint return, spouse's first name and middle initial Last name Spouse's social security number Home address (number and street), If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign 1507 Rose Lane Do you, or your spouse if filing City, town, or post ofce. If you have a foreign address, also complete State ZIP code jointly, want $3 to go to this fund. spaces below, Selecting an option below Will not Albuquerque, NM 37131 change your tax or refund. No v s/ Foreign country name Foreign province/state/county Foreign postal code At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any nancial interest in any virtual currency? N0 ' ~/ Standard . Someone can claim: M ~/ Deduction You: None v J A e Blindness g I Spouse: None v / Dependents (see instructions): (2) Social security (3) Relationship (4) I if qualies for (see instructions): If more than four (1) First name Last name number to you Child tax credit Credit for other dependents de endents see p ' Tom Bishop 123456788 Yes v x No v x instructions and check here > D D D [I D Tax Return Project #3 Print Item 1 Wages, salaries, tips, etc. Attach Form(S) W-2 . . . . . . . . . . . 1 Attach 2a Tax-exempt interest . . 2a 17,000 b Taxable interest . . . . 2b 13,500 Sch. B if required. 3a Qualified dividends . . 3a 12,000 b Ordinary dividends . . . . . 3b 12,000 4a IRA distributions . 4a b Taxable amount . . 46 5a Pensions and annuities 5a b Taxable amount . . 5b Standard 5a Social security benefits 6a b Taxable amount . . . . . 6b Deduction for- 7 . Single or Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . 7 -3,000 Married filing 8 separately, Other income from Schedule 1, line 10 . . 8 157,500 X $12,550 Married filing 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . 186,000 X jointly or Qualifying 10 Adjustments to income from Schedule 1, line 26 . . . 10 227,758 X widow(er), $25,100 11 Subtract line 10 from line 9. This is your adjusted gross income . . . . . . 11 150,650 Head of household, 12a Standard deduction or itemized deductions (from $18,800 Schedule A) . . . 12a 26,699 X . . . . If you checked any box under b Charitable contributions if you take the standard deduction Standard (see instructions) . . . Deduction, see 12b instructions. c Add lines 12a and 12b . . 12c 26,699 X 13 Qualified business income deduction from Form 8995 or Form 8995-A . . . . 13 128,150 X 14 Add lines 12c and 13 . . 14 154,849 X Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- .. . . . . ... 15 99,000Tax Return Project #3 Prinl Item BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2021) Form 1040 (2021) Devon Bishop 111-11-1117 Page 2 16 Tax (see instructions). Check if any from Form(s): 1 D 8814 2 D 4972 3 D 15 X 17 Amount from Schedule 2, line 3 ........................................ 17 18 Add lines 16 and 17 ................................................ 18 17,781 X 19 Nonrefundable child tax creditor credit for other dependents from Schedule 8812 . . . t 19 Z] X 20 Amount from Schedule 3, line 8 ........................................ 20 21 Add lines 19 and 20 ................................................. 21 [: x 22 Subtract line 21 from line 18. If zero or less, enter 0- ......................... 22 l: X 23 Other taxes, including self-employment tax, from Schedule 2, line 21 .............. 23 X 24 Add lines 22 and 23. This is your total tax ............................... > 24 [: X 25 Federal income tax withheld from: ...................................... a Form(s) W2 ................................... 253 b Form(s) 1099 .................................. 25b c Other forms (see instructions) ...................... 25c d Add lines 25a through 25: ............................................ 25d 26 2021 estimated tax payments and amount applied from 2020 return .............. 26 :] X If you have a Tax Return Project #3 Print Item January 2, 2004, and you satisfy all the other requirements for taxpayers who are at least age 18, to claim the EIC. See instructions ................................ V b Nontaxable combat pay election . . 27b c Prior year (2019) earned income , . 27c 28 Refundable child tax credit or additional child tax credit from Schedule 8812 ................................. 28 29 American opportunity credit from Form 8863, line 8 ....... 29 30 Recovery rebate credit. See instructions ................ 30 31 Amount from Schedule 3, line 15 ..................... 31 32 Add lines 27a and 28 through 31. These are your total other payments and a refundable credits .............................................. V 32 33 Add lines 25d, 26, and 32. These are your total payments ................... > 33 S X 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount ou Refu nd Y overpaid ........................................................ 34 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here > El 35a Direct deposit? > b Routing number > c Type: D Checking D Savings See instructions. > d Account number 36 Amount of line 34 you want applied to your 2022 estimated tax ................................. ...... > 36 37 Amount You Owe. Subtract line 33 from line 24. For details on how to a , see AW\" \" :1 x instructions ..................................................... > 37 You owe 38 Estimated tax penalty (see instructions) .............. > 38 Complete Devon's Schedule 1 below for 2021. If required, use the minus to indicate a loss. SCHEDULE 1 OMB No. 1545-0074 (Form 1040) Additional Income and Adjustments to Income 2021 Department of the Treasury > Attach to Form 1040, 1o4o-sn, or 1040-NR. Attachment Internal Revenue Service > Go to www.irs.gov/Farm1040 for instructions and the latest information. Sequence N- 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number Devon Bishop 111-11-1117 E Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes ............................... 1 23 Alimony received ................................................................. 2a I: Date of original divorce or separation agreement (see instructions) > 3 Business income or (loss). Attach Schedule C .............................................. 3 X 4 Other gains or (losses). Attach Form 4797 ................................................ 4 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E ............... 5 6 Farm income or (loss). Attach Schedule F ................................................. 6 7 Unemployment compensation ......................................................... 7 8 Other income: a Net operating loss ............................................. 8a ( ) b Gambling income .............................................. 8b c Cancellation of debt ............................................ 8: d Foreign earned income exclusion from Form 2555 ....................... 8d ( ) e Taxable Health Savings Account distribution ........................... 8e 9 Total other income. Add lines 8a through 8z . . . . . . . . 9 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 . . . . 10 157,500 X For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 2021 Schedule 1 (Form 1040) (2021) Devon Bishop 111-11-1117 Part II Adjustments to Income 11 Educator expenses . . . . . 11 12 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . 12 13 Health savings account deduction. Attach Form 8889 . . 13 14 Moving expenses for members of the Armed Forces. Attach Form 3903 14 15 Deductible part of self-employment tax. Attach Schedule SE . . . . 15 219,758 X Self-employed SEP, SIMPLE, and qualified plans . . . 16 16 17 Self-employed health insurance deduction . . . 17 8,000 3 Penalty on early withdrawal of savings . . . . . . 18 19a Alimony paid . 19a b Recipient's SSN . c Date of original divorce or separation agreement (see instructions) . . . . . 20 IRA deduction . . 20 21 Student loan interest deduction . . . . 21 Check My Work 3 more Check My Work uses remaining