Question: 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

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:

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

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:

Medical expenses (including $10,500 for dental) $13,500
Taxes
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:

Social Security Number Birth Date
Logan Taylor (age 48) 123-45-6787 08/30/1973
Helen Taylor (age 70) 123-45-6780 01/13/1951
Asher Taylor (age 23) 123-45-6783 07/18/1998
Mia Taylor (age 22) 123-45-6784 02/16/1999

Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married.

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

Required:

Compute Logan's income tax for 2021. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes were withheld. Logan received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Logan does not own and did not use any virtual currency during the year, and he does not want to contribute to the Presidential Election Campaign Fund.

  • Make realistic assumptions about any missing data.
  • Enter all amounts as positive numbers except any losses. Use the minus sign to indicate a loss.
  • If an amount box does not require an entry or the answer is zero, enter "0".
  • It may be necessary to complete the other tax schedules before completing Form 1040.
  • Use the included tax rate schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.plete Form 1040 below for Logan Taylor.

Form

1040

Department of the TreasuryInternal Revenue Service (99) U.S. Individual Income Tax Return 2021 OMB No. 1545-0074 IRS Use Only

Filing Status

SingleMarried filing jointlyMarried filing separately (MFS)Head of household (with qualifying person) (HOH)Qualifying widow(er) (QW)Qualifying widow(er) (QW)

Your first name and middle initial Logan B. Taylor Last name Your social security number 123-45-6787
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. 4680 Dogwood Lane Apt. no.

Presidential Election Campaign Doyou, or your spouse if filing jointly, want $3 to go to this fund. Selecting an option below will not change your tax or refund.

YesNoNo

City, town, or post office. If you have a foreign address, also complete spaces below. Springfield, MO 65801 State ZIP code
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 financial interest in any virtual currency? YesNoNo
Standard Deduction

Someone can claim:

You as a dependentYour spouse as a dependentSpouse itemizes on a separate return or you were a dual-status alienNoneNone

Age/Blindness

You:

Were born before January 2, 1957Are blindWere born before January 2, 1957, Are blindNoneNone

Spouse:

Was born before January 2, 1957Is blindWas born before January 2, 1957, Is blindNoneNone

Dependents If more than four dependents, see instructions and check here (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions):
(1) First name Last name Child tax credit Credit for other dependents
Helen Taylor 123-45-6780 Parent YesNoNo YesNoYes
Asher Taylor 123-45-6783 Child YesNoNo YesNoYes
Mia Taylor 123-45-6784 Child YesNoNo YesNoYes

Attach Sch. B if required.

1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

fill in the blank 9b559000cfac03e_13

2a Tax-exempt interest . . 2a

fill in the blank 9b559000cfac03e_14

b Taxable interest . . . . . . . . . . 2b

fill in the blank 9b559000cfac03e_15

3a Qualified dividends . . . 3a b Ordinary dividends . . . . . . . . 3b
4a IRA distributions . . . . . 4a b Taxable amount . . . . . . . . . . 4b
5a Pensions and annuities 5a b Taxable amount . . . . . . . . . . 5b

Standard Deduction for-

  • Single or Married filing separately, $12,550
  • Married filing jointly or Qualifying widow(er), $25,100
  • Head of household, $18,800
  • If you checked any box under Standard Deduction, see instructions.
6a Social security benefits 6a b Taxable amount . . . . . . . . . . 6b
7 Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . 7

fill in the blank 9b559000cfac03e_16

8 Other income from Schedule 1, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . . . . . . . . . . . . . . 9

fill in the blank 9b559000cfac03e_17

10 Adjustments to income from Schedule 1, line 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Subtract line 10 from line 9. This is your adjusted gross income . . . . . . . . . . . . . . 11

fill in the blank 9b559000cfac03e_18

12a Standard deduction or itemized deductions (from Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12a

fill in the blank 9b559000cfac03e_19

b Charitable contributions if you take the standard deduction (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12b
c Add lines 12a and 12b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12c

fill in the blank 9b559000cfac03e_20

13 Qualified business income deduction from Form 8995 or Form 8995-A . . . . . . . . . . . . . 13
14 Add lines 12c and 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

fill in the blank 9b559000cfac03e_21

15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- . . . . . . . . . . . . 15

fill in the blank 9b559000cfac03e_22

BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2021)

Form 1040 (2021) Logan B. Taylor 123-45-6787 Page 2
16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 . . 16

fill in the blank 9b559000cfac03e_23

17 Amount from Schedule 2, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Add lines 16 and 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

fill in the blank 9b559000cfac03e_24

19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812 . . . . 19

fill in the blank 9b559000cfac03e_25

20 Amount from Schedule 3, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

fill in the blank 9b559000cfac03e_26

22 Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . 22

fill in the blank 9b559000cfac03e_27

23 Other taxes, including self-employment tax, from Schedule 2, line 21 . . . . . . . . . . . . . . 23
24 Add lines 22 and 23. This is your total tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

fill in the blank 9b559000cfac03e_28

25 Federal income tax withheld from: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
a Form(s) W-2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25a

fill in the blank 9b559000cfac03e_29

b Form(s) 1099 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25b
c Other forms (see instructions) . . . . . . . . . . . . . . . . . . . . . . 25c
d Add lines 25a through 25c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25d

fill in the blank 9b559000cfac03e_30

If you have a qualifying child, attach Sch. EIC. 26 2021 estimated tax payments and amount applied from 2020 return . . . . . . . . . . . . . . 26
27a Earned income credit (EIC) . . . . . . . . . . . . . . . . . . . . . . . . . 27a
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 . . 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 refundable credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
33 Add lines 25d, 26, and 32. These are your total payments . . . . . . . . . . . . . . . . . . . 33

fill in the blank 9b559000cfac03e_31

Refund 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here 35a
Direct deposit? b
Routing number c Type: Checking Savings
See instructions. d
Account number
36 Amount of line 34 you want applied to your 2022 estimated tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Amount You Owe 37 Amount You Owe. Subtract line 33 from line 24. For details on how to pay, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

fill in the blank 9b559000cfac03e_32

38 Estimated tax penalty (see instructions) . . . . . . . . . . . . . . 38
Third Party Designee Do you want to allow another person to discuss this return with the IRS? See instructions. Yes. Complete below. No
Designee's name Phone no. Personal identification number (PIN)
Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and 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.
Your signature Date Your occupation Paralegal
If the IRS sent you an Identity Protection PIN, enter it here
(see inst.)
Spouse's signature. If a joint return, both must sign. Date Spouse's occupation
If the IRS sent your spouse an Identity Protection PIN, enter it here
(see inst.)
Phone no. Email address
Paid Preparer Use Only Preparer's name Preparer's signature Self-Prepared Date PTIN Check if: Self-employed
Firm's name Phone no.
Firm's address Firm's EIN
Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2021)

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