Prepare a 2021 individual federal income tax return. Use the 2021 forms, all entries and calculates must be based on 2021 tax law. Use your name as the taxpayer name; do not use your social security number. Base the return on the following facts: - Taxpayers are married; husband is 63 and wife is 55 years old, both have good eyesight. - Two children, one age 27(does not live with taxpayer, earns $40,000 per year in wages) and 14 years old (full time student, lives with taxpayer). - Husband is retired. - Wife is an Administrator of a local school. For 2021, she was paid as follows: - Salary $143,000 - Federal tax withheld $19,350 - Interest received on savings account $50. - Ordinary Dividends received (Not Qualified) $4,000 - Husband collected $30,000 in social security benefits. - They made the following payments during 2021: - Payments on car lease $9,600. - Medical expenses paid $12,240 - Real estate taxes on home $15,600 - Real estate taxes on Vacation home $3,000 - Real estate taxes on Daughters home $9,500 - Mortgage Interest (acquisition debt) on Vacation home $16,000 - NYS income taxes $6,000 paid from wages - April 2021 Paid NYS $1,425 for balance of 2020 taxes - Paid $2,700 in student loan interest - Donated $2,250 cash to a qualified charity - Dog food cost $1,325 - Wife paid $3,500 in student loan interest (do those loans ever go away?) - Drove 500 miles for doctor visits and 800 miles for a charity - Did not pay significant sales tax during 2021 - You will need to calculate the taxable amount of social security benefits. Go to the IRS website and use the instructions for the 2021 form 1040. - The IRS instructions has a worksheet for calculating the allowable deduction for Student Loan Interest. federal return (no state return required)

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Preparing a tax return based on the provided information for the tax year 2021 Form 1040 US Individu... View the full answer