Note: This problem is for the 2021 tax year. Alice 3. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alice's birthday is September 21,1974 , and Bruce's is June 27, 1973. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (Employer Identification Number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (Employer Identification Number 11-1111111). The Byrds provide over half of the support of their two children, Cynthia (born January 25,1997 , Soclal Security number 123-45-6788) and John (born February 7, 2001, Social Security number 123-45-6780). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $6,200 from a summer internship in 2021, and John earned $3,800 from a part-time job. Both children received scholarships covering tuition and materials. During 2021, the Byrds provided 60% of the total support of Bruce's widower father, Sam Byrd (born March 6, 1945, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficlary of a policy on Sam's life, recelved life insurance proceeds of $1,600,000 on December 28. The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father's support. Other relevant information follows: - When they filed their 2020 state return in 2021, the Byrds paid additional state income tax of $900. - During 2021, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds pald $300 for the tickets. The cost of comparable entertainment would normally be $50. - The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350 ) to the Salvation Army. All donations are supported by recelpts, and the clothing is in very good condition. - Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ( $400 ), In - During 2021, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. - The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350 ) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. - Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ( $400 ). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65 ). - In 2021, the Byrds received interest income of $2,750, which was reported on a Form 1099-INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 (Employer Identification Number 98-7654322). - The home mortgage interest was reported on Form 1098 by Lowell Commercial Bank, P.O. Box 1000, Lowell, MA .01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1, 2021) was taken out by the Byrds on May 1, 2017. - Alice's employer requires that all employees wear uniforms to work. During 2021, Alice spent $850 on new uniforms and $566 on laundry charges. - Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association. - Neither Alice's nor Bruce's employer reimburses for employee expenses. - The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. - This year the Byrds gave each of their children $2,000, which was then deposited into their Roth IRAS. - Alice and Bruce paid no estimated Federal income tax, and they did not engage in any virtual currency transactions during the year. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. The Byrds recelved the approprlate recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Compute net tax payable or refund due for Alice and Bruce Byrd for 2021. If they have overpaid; they want the amount to be refunded to them. - Make realistic assumptions about any missing data. - If an amount box does not require an entry or the answer is zero, enter " 0 ". - Enter all amounts as positive numbers. - It may be necessary to complete the tax schedules before completing Form 1040. - When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. - Use the Tax Rate Schedule provided. Do not use the Tax Tables. Note: for the Tax Planning section only, use the 2022 Tax Rate Schedule found in Appendix A of the textbook. Complete the Byrd's Form 1040 for 2021. Form 1040 Foreign country name At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? Standard Re Deduction Someone can claim: Age/Blindness You: Form 1040 Form 1040 Form 1040 Form 1040 (2021) Bruce M. and Alice 3 . Byrd 111-11-1113 Page 2 16 Tax (see instructions). Check if any from Form(s): 1881420997230 17 Amount from Schedule 2 , line 3 18 Add lines 16 and 17 19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812... 20 Amount from Schedule 3, line 8 22 Subtract line 21 from line 18. If zero or less, enter 0 23 Other taxes, including self-employment tax, from Schedule 2 , line 21 24 Add lines 22 and 23. This is your total tax .............................., 24 25 Federal income tax withheld from: a Form(s) w-2 ................................ 25 a Form 1040 b Form(s) 1099 c Other forms (see instructions) d Add lines 25a through 25c. If you have a 262021 estimated tax payments and amount applied from 2020 return. qualifying child, Earned income credit \begin{tabular}{|c|} \hline 25b \\ \hline 25c \\ \hline \end{tabular} attach Sch. EIC. Check here if you were born after January 1, 1998, and before January 2, 2004, and you satisfy all the other requirements for taxpayers who are at least age 18, to claim the EIC. See instructions. b Nontaxable combat pay election c. Prior year (2019) earned income .. 27c 28 Refundable child tax credit or additional chilid tax credit from Schedule 8812. 29 American opportunity credit from Form 8863, line 8, 30 Recovery rebate credit, See instructions ............ 30 31 Amount from Schedule 3, line 15.......31 32 Add lines 27 and 28 through 31 . These are your total other payments and refundable credits 33 Add lines 25d,26, and 32 . These are your total payments. 32 Refund 34 If line 33 is more than line 24 , subtract line 24 from line 33 . This is the amount you overpaid. 35a Amount of line 34 you want refunded to you. If form 8888 is attached, check here Direct deposit? See instructions. Routing number c Type: D Checking a Savings 36 Amount of line 34 you want applied to your 2022 estimated Amount 37 Amount You owe. Subtract line 33 from line 24. For detalls on how to pay, see You Owe 38 Estimated tax penalty (see instructions) ............ Third Party Do you want to allow another person to discuss this return with the IRS? See instructions, Designee DesigneesnamePhoneno,Personalidentificationnumber(PIN) Sign Under penalties of perjury, I deciare that I have examined this return and accompanying schedules and statements, and. Here to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Form 1040 Here taxpayer) is based on all information of which preparer has any knowledge. Complete Alice and Bruce Byrds Schedule A for 2021. Schedule A 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 5 a, but not both. If you elect to include general sales taxes instead of. income taxes, check this box. c State and local personal property taxes. d Add lines 5 a through 5c. e. Enter the smaller of line 5d or $10,000($5,000 if married fling. separately) 6 Other taxes. List type and amount 7 Add lines 5e and 6 Schedule A Interest 8 Home mortgage interest and points. If you didn't use all of your You Paid home mortgage loan(s) to buy, bulld, or improve your home, see instructions and check this box. Caution: a Home mortgage interest and points reported to you on Form 1098. Your mortgage See instructions if limited. 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.y and address c Points not reported to you on Form 1098. See instructions for d Mortage insurance premiums (see instructions) ........... e Add lines 8 a through 8d 9 investment interest. Attach Form 4952 if required. See instructions. 10 Add lines 8e and 9 Schedule A Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions . Caution: 12 Other than by cash or check. If you made any gift of $250 or more, If you made a see instructions. You must attach Form 8283 if over $500 gift and got a 13 Carryover from prior year ...................... benefit for it, TheftLosseslosses).Attachform4684andentertheamountfromline18ofthatform.Seeinstructions.15 Other 16 Other-from ilst in instructions. List type and amount Itemized Deductions Total 17 Add the amounts in the for right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040 SR, line 12a.......................1......... 17 Complete Alice and Bruce Byrd's Schedule B 2021. Schedule B Note: If you received a form 1099-INT, Form 1099.010, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach interest shown on Form 8815 that form. 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-5R; line 2b Part II Note: If line 4 is over $1,500, you must complete Part III. Amount Ordinary Dividends Schedule B (See instructions and the instructions for Form 1040, line 3b. Note: If you recelved a form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 10405R, line 3b Note: If line 6 is over $1,500, you must complete Part IIf. BAA ror paperwork reduction Act Notice, see your tax return instructions. schequte s (rorm 1040 ) 2021 Complete Alice and Bruce Byrd's Schedule 8812. 4a Number of qualifying children under age 18 with the required social security number b Number of children included on line 4a who were under age 6 at the end of 2021 . c Subtract line 4b from line 4a. 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 ............. Caution: Do not include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident atien. Also, do not include anyone you included on line 4a. Schedule 8812 9 Enter the amount shown below for your filing status. - Married filing jointly $400,000 - All other filing statuses $200,000 \} 10 Subtract line 9 from line 3. - If zero or les5, enter 0. - 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. 11 Multiply line 10 by 5%(0,05). 12 Subtract line 11 from line 8 . If zero or less, enter 0 - 13 Check all the boxes that apply to you (or your spouse if married filing jointly). A Check here if you (or your spouse if married filing jointly) have a principal place of abode in the United B Check here if you (or your spouse if married filing jointly) are a bona fide resident of Puerto Rico for 2021 o Schedule 8812 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.1-B; instead, skip to Part. I-C. 14a Enter the smaller of line 7 or line 12 ... b c If line 14 a is zero, enter - 0; otherwise, enter the amount from the Credit Limit worksheet A........ 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 ........................... 14t Caution: If the amount on this line doesn't match the aggregate amounts reported to you (and your spouse if filing jointy) on your Letter(s) 6419 , the processing of your return will be delayed. 9 Subtract line 14f from line 14e. If zero or less, enter -0- on lines 149 through 14i and go to Part III........ 149 Schedule 8812 d Enter the smaller of line 14a or line 14C e Add lines 14b and 14d. 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. Caution: If the amount on this line doesn't match the aggregate amounts reported to you (and your spouse if fliing Jointly) on your Letter(s) 6419 , the processing of your return will be delayed. 9 Subtract line 14 from line 14e. If zero or less; enter - 0 - on lines 14g through 141 and 90 to Part III . 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. I Subtract line 14h from line 14g. This is your refundable child tax credit. Enter this amount on line 28 For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 8812 (Form 1040) 2021 Alice and Bruce are planning some significant changes for 2022 . They have provided you with the following information and asked you to project their taxable income and tax liability for 2022. Assume that the Byrds will itemize their deductions next year. - The Byrds will invest the $1,600,000 of life insurance proceeds in short-term certificates of deposit (CDs) and use the interest for living expenses during 2022. They expect to earn interest of $32,000 on the CDs. - Bruce has been promoted to regional manager, and his salary for 2022 will be $88,000. He estimates that state income tax withheld will increase by $4,000 and the Social Security tax withheld will be $5,456. - Alice, who has been diagnosed with a serious illness, will take a leave of absence from work during 2022, so she will not receive a salary or incur any work-related expenses during the year. The estimated cost for her medical treatment is $15,400, of which $6,400 will be reimbursed by their insurance company in 2022. Their medical insurance premlums will increase to $9,769. - Property taxes on their residence are expected to increase to $5,100. - The Byrds' home mortgage interest expense and charitable contributions are expected to be unchanged from 2021. - John will graduate from college in December 2021 and will take a job in New York City in January 2022. His starting salary will be $46,000. In 2022 , the medical expenses are reduced by 7.5% of AGI. Assume that all of the information reported in 2021 will be the same in 2022 unless other information has been presented above. Use the 2022 Tax Rate Schedule found in Appendix A of the textbook. Based on this information, the Bryd's projected litemized deductions for 2022 would be taxable income would be and the related tax liability for 2022 would be 2021 Tax Rate Schedules Note: This problem is for the 2021 tax year. Alice 3. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alice's birthday is September 21,1974 , and Bruce's is June 27, 1973. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (Employer Identification Number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (Employer Identification Number 11-1111111). The Byrds provide over half of the support of their two children, Cynthia (born January 25,1997 , Soclal Security number 123-45-6788) and John (born February 7, 2001, Social Security number 123-45-6780). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $6,200 from a summer internship in 2021, and John earned $3,800 from a part-time job. Both children received scholarships covering tuition and materials. During 2021, the Byrds provided 60% of the total support of Bruce's widower father, Sam Byrd (born March 6, 1945, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficlary of a policy on Sam's life, recelved life insurance proceeds of $1,600,000 on December 28. The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father's support. Other relevant information follows: - When they filed their 2020 state return in 2021, the Byrds paid additional state income tax of $900. - During 2021, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds pald $300 for the tickets. The cost of comparable entertainment would normally be $50. - The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350 ) to the Salvation Army. All donations are supported by recelpts, and the clothing is in very good condition. - Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ( $400 ), In - During 2021, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50. - The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350 ) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. - Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ( $400 ). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65 ). - In 2021, the Byrds received interest income of $2,750, which was reported on a Form 1099-INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 (Employer Identification Number 98-7654322). - The home mortgage interest was reported on Form 1098 by Lowell Commercial Bank, P.O. Box 1000, Lowell, MA .01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1, 2021) was taken out by the Byrds on May 1, 2017. - Alice's employer requires that all employees wear uniforms to work. During 2021, Alice spent $850 on new uniforms and $566 on laundry charges. - Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association. - Neither Alice's nor Bruce's employer reimburses for employee expenses. - The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. - This year the Byrds gave each of their children $2,000, which was then deposited into their Roth IRAS. - Alice and Bruce paid no estimated Federal income tax, and they did not engage in any virtual currency transactions during the year. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. The Byrds recelved the approprlate recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Compute net tax payable or refund due for Alice and Bruce Byrd for 2021. If they have overpaid; they want the amount to be refunded to them. - Make realistic assumptions about any missing data. - If an amount box does not require an entry or the answer is zero, enter " 0 ". - Enter all amounts as positive numbers. - It may be necessary to complete the tax schedules before completing Form 1040. - When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. - Use the Tax Rate Schedule provided. Do not use the Tax Tables. Note: for the Tax Planning section only, use the 2022 Tax Rate Schedule found in Appendix A of the textbook. Complete the Byrd's Form 1040 for 2021. Form 1040 Foreign country name At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? Standard Re Deduction Someone can claim: Age/Blindness You: Form 1040 Form 1040 Form 1040 Form 1040 (2021) Bruce M. and Alice 3 . Byrd 111-11-1113 Page 2 16 Tax (see instructions). Check if any from Form(s): 1881420997230 17 Amount from Schedule 2 , line 3 18 Add lines 16 and 17 19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812... 20 Amount from Schedule 3, line 8 22 Subtract line 21 from line 18. If zero or less, enter 0 23 Other taxes, including self-employment tax, from Schedule 2 , line 21 24 Add lines 22 and 23. This is your total tax .............................., 24 25 Federal income tax withheld from: a Form(s) w-2 ................................ 25 a Form 1040 b Form(s) 1099 c Other forms (see instructions) d Add lines 25a through 25c. If you have a 262021 estimated tax payments and amount applied from 2020 return. qualifying child, Earned income credit \begin{tabular}{|c|} \hline 25b \\ \hline 25c \\ \hline \end{tabular} attach Sch. EIC. Check here if you were born after January 1, 1998, and before January 2, 2004, and you satisfy all the other requirements for taxpayers who are at least age 18, to claim the EIC. See instructions. b Nontaxable combat pay election c. Prior year (2019) earned income .. 27c 28 Refundable child tax credit or additional chilid tax credit from Schedule 8812. 29 American opportunity credit from Form 8863, line 8, 30 Recovery rebate credit, See instructions ............ 30 31 Amount from Schedule 3, line 15.......31 32 Add lines 27 and 28 through 31 . These are your total other payments and refundable credits 33 Add lines 25d,26, and 32 . These are your total payments. 32 Refund 34 If line 33 is more than line 24 , subtract line 24 from line 33 . This is the amount you overpaid. 35a Amount of line 34 you want refunded to you. If form 8888 is attached, check here Direct deposit? See instructions. Routing number c Type: D Checking a Savings 36 Amount of line 34 you want applied to your 2022 estimated Amount 37 Amount You owe. Subtract line 33 from line 24. For detalls on how to pay, see You Owe 38 Estimated tax penalty (see instructions) ............ Third Party Do you want to allow another person to discuss this return with the IRS? See instructions, Designee DesigneesnamePhoneno,Personalidentificationnumber(PIN) Sign Under penalties of perjury, I deciare that I have examined this return and accompanying schedules and statements, and. Here to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Form 1040 Here taxpayer) is based on all information of which preparer has any knowledge. Complete Alice and Bruce Byrds Schedule A for 2021. Schedule A 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 5 a, but not both. If you elect to include general sales taxes instead of. income taxes, check this box. c State and local personal property taxes. d Add lines 5 a through 5c. e. Enter the smaller of line 5d or $10,000($5,000 if married fling. separately) 6 Other taxes. List type and amount 7 Add lines 5e and 6 Schedule A Interest 8 Home mortgage interest and points. If you didn't use all of your You Paid home mortgage loan(s) to buy, bulld, or improve your home, see instructions and check this box. Caution: a Home mortgage interest and points reported to you on Form 1098. Your mortgage See instructions if limited. 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.y and address c Points not reported to you on Form 1098. See instructions for d Mortage insurance premiums (see instructions) ........... e Add lines 8 a through 8d 9 investment interest. Attach Form 4952 if required. See instructions. 10 Add lines 8e and 9 Schedule A Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, Charity see instructions . Caution: 12 Other than by cash or check. If you made any gift of $250 or more, If you made a see instructions. You must attach Form 8283 if over $500 gift and got a 13 Carryover from prior year ...................... benefit for it, TheftLosseslosses).Attachform4684andentertheamountfromline18ofthatform.Seeinstructions.15 Other 16 Other-from ilst in instructions. List type and amount Itemized Deductions Total 17 Add the amounts in the for right column for lines 4 through 16. Also, enter this amount on Itemized Form 1040 or 1040 SR, line 12a.......................1......... 17 Complete Alice and Bruce Byrd's Schedule B 2021. Schedule B Note: If you received a form 1099-INT, Form 1099.010, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach interest shown on Form 8815 that form. 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-5R; line 2b Part II Note: If line 4 is over $1,500, you must complete Part III. Amount Ordinary Dividends Schedule B (See instructions and the instructions for Form 1040, line 3b. Note: If you recelved a form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. 6 Add the amounts on line 5. Enter the total here and on Form 1040 or 10405R, line 3b Note: If line 6 is over $1,500, you must complete Part IIf. BAA ror paperwork reduction Act Notice, see your tax return instructions. schequte s (rorm 1040 ) 2021 Complete Alice and Bruce Byrd's Schedule 8812. 4a Number of qualifying children under age 18 with the required social security number b Number of children included on line 4a who were under age 6 at the end of 2021 . c Subtract line 4b from line 4a. 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 ............. Caution: Do not include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident atien. Also, do not include anyone you included on line 4a. Schedule 8812 9 Enter the amount shown below for your filing status. - Married filing jointly $400,000 - All other filing statuses $200,000 \} 10 Subtract line 9 from line 3. - If zero or les5, enter 0. - 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. 11 Multiply line 10 by 5%(0,05). 12 Subtract line 11 from line 8 . If zero or less, enter 0 - 13 Check all the boxes that apply to you (or your spouse if married filing jointly). A Check here if you (or your spouse if married filing jointly) have a principal place of abode in the United B Check here if you (or your spouse if married filing jointly) are a bona fide resident of Puerto Rico for 2021 o Schedule 8812 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.1-B; instead, skip to Part. I-C. 14a Enter the smaller of line 7 or line 12 ... b c If line 14 a is zero, enter - 0; otherwise, enter the amount from the Credit Limit worksheet A........ 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 ........................... 14t Caution: If the amount on this line doesn't match the aggregate amounts reported to you (and your spouse if filing jointy) on your Letter(s) 6419 , the processing of your return will be delayed. 9 Subtract line 14f from line 14e. If zero or less, enter -0- on lines 149 through 14i and go to Part III........ 149 Schedule 8812 d Enter the smaller of line 14a or line 14C e Add lines 14b and 14d. 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. Caution: If the amount on this line doesn't match the aggregate amounts reported to you (and your spouse if fliing Jointly) on your Letter(s) 6419 , the processing of your return will be delayed. 9 Subtract line 14 from line 14e. If zero or less; enter - 0 - on lines 14g through 141 and 90 to Part III . 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. I Subtract line 14h from line 14g. This is your refundable child tax credit. Enter this amount on line 28 For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 8812 (Form 1040) 2021 Alice and Bruce are planning some significant changes for 2022 . They have provided you with the following information and asked you to project their taxable income and tax liability for 2022. Assume that the Byrds will itemize their deductions next year. - The Byrds will invest the $1,600,000 of life insurance proceeds in short-term certificates of deposit (CDs) and use the interest for living expenses during 2022. They expect to earn interest of $32,000 on the CDs. - Bruce has been promoted to regional manager, and his salary for 2022 will be $88,000. He estimates that state income tax withheld will increase by $4,000 and the Social Security tax withheld will be $5,456. - Alice, who has been diagnosed with a serious illness, will take a leave of absence from work during 2022, so she will not receive a salary or incur any work-related expenses during the year. The estimated cost for her medical treatment is $15,400, of which $6,400 will be reimbursed by their insurance company in 2022. Their medical insurance premlums will increase to $9,769. - Property taxes on their residence are expected to increase to $5,100. - The Byrds' home mortgage interest expense and charitable contributions are expected to be unchanged from 2021. - John will graduate from college in December 2021 and will take a job in New York City in January 2022. His starting salary will be $46,000. In 2022 , the medical expenses are reduced by 7.5% of AGI. Assume that all of the information reported in 2021 will be the same in 2022 unless other information has been presented above. Use the 2022 Tax Rate Schedule found in Appendix A of the textbook. Based on this information, the Bryd's projected litemized deductions for 2022 would be taxable income would be and the related tax liability for 2022 would be 2021 Tax Rate Schedules