Instructions

Note: This problem is for the $2021$ tax year.

Logan B$.$ Taylor is a widower whose wife, Sara, died on June $6,2019.$ He lives at $4680$ Dogwood Lane, Springfield, MO $65801.$ He is employed as a paralegal by a local law firm. During $2021,$ he had the following receipts:

$\backslash$table$[[$Salary$,$$$80,000,],[$Interest income$-,$$$300,],[$Money market account at Omni Bank,$1,100,],[$Savings account at Boone State Bank,$3,000,4,400],[$City of Springfield general purpose bonds,$60,000,],[$Inheritance from Daniel,$200,000,],[$Life insurance proceeds,$80,000,],[$Amount from sale of St$.$ Louis lot,$9,000,],[$Proceeds from estate sale,$700,],[$Federal income tax refund $($for $2020$ tax overpayment$),,]]$

Logan inherited securities worth $$60,000,$ from his uncle, Daniel, who died in $2021.$ Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $$200,000.$ The lot in St$.$ Louis was purchased on May $2,2016,$ for $$85,000$ and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January $5,2021,$ for $$80,000,$ The estate sale consisted largely of items belonging to Sara and Daniel $($e$.$g$.,$ camper, boat, furniture, and fishing and hunting equipment$).$ Logan estimates that the property sold originally cost at least twice the $$9,000$ he received and has declined or stayed the same in value since Sara and Daniel died.

Logan's expenditures for $2021$ include the following:

$\backslash$table$[[$Medical expenses $($including $$10,500$ for dental$),,],[$Taxes$-,$$$13,500,],[$State of Missouri income tax $($includes withholdings during $2021),$$$4,200,],[$Property taxes on personal residence,$4,500,8,700],[$Interest on home mortgage $($Boone State Bank$),5,600,],[$Contribution to church $($paid pledges for $2021$ and $2022),4,800,]]$

While Logan and his dependents are covered by his employer's health insurance policy, he is subject to a deductible, and dental care is not included. The $$10,500$ dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him $($see below$).$ Logan normally pledges $$2,400($ $$200$ per month$)$ each year to his church. On December $5,2021,$ upon the advice of his pastor, he prepaid his pledge for $2022.$

Logan's household, all of whom he supports, includes the following:

$\backslash$table$[[,$Social Security Number Birth Date,$],[$Logan Taylor $($age $48),123-45-6787,\frac{08}{30}\frac{?}{1973}$

Federal income tax of $$4,200$ was withheld from his wages

Can you complete form $1040$ for year $2021$