Use the following information to help Edgar prepare his 2021 taxes: Filing Status 2021 Standard Deduction...

  

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Use the following information to help Edgar prepare his 2021 taxes: Filing Status 2021 Standard Deduction Single Married, Filing Jointly Surviving Spouse Head of Household $12,550 25,100 25,100 18,800 Married, Filing Separately 12,550 Edgar, age 56, has come to you to prepare his 2021 tax return. He has brought you the following documentation on both the income he has received in 2021 and the payments he has made in 2021. He is not sure if the income items are taxable or not taxable and he is unsure if any of his payments are deductible or not. The one thing he does know is that his filing status is Head of Household! Income received and payment made: Received wages Received lottery prize Received life insurance proceeds Made an IRA Contribution Received a gift from his parents Loss on a stock investment (capital loss) Made a charitable contribution to qualified organization Paid alimony to his ex-wife (divorce finalized in 2015) Received interest income from Intel bonds Paid child support Received interest income on City of Santa Fe bonds Paid property taxes on personal residence Paid home mortgage interest Number of personal & dependency exemptions $ 50,000 10,000 20,000 3,000 3,400 4,300 5,200 3,750 2,600 8,500 1,800 7,500 6,900 1. List the income items and amounts from above that will be excluded from gross income on Edgar's 1040 tax return. Calculate the total amount of excluded income. 2. List the income items and amounts from above that will be included in gross income on Edgar's 1040 tax return. Calculate the total amount of included income. (Hint: items cannot be both excluded and included in gross income!) 3. Calculate Edgar's AGI as reported on his 1040 tax return. 4. List the items and amounts from above that would be included in itemized deductions. Calculate the total amount of itemized deductions. 5. Calculate Edgar's taxable income as reported on his 1040 tax return. Use the following information to help Edgar prepare his 2021 taxes: Filing Status 2021 Standard Deduction Single Married, Filing Jointly Surviving Spouse Head of Household $12,550 25,100 25,100 18,800 Married, Filing Separately 12,550 Edgar, age 56, has come to you to prepare his 2021 tax return. He has brought you the following documentation on both the income he has received in 2021 and the payments he has made in 2021. He is not sure if the income items are taxable or not taxable and he is unsure if any of his payments are deductible or not. The one thing he does know is that his filing status is Head of Household! Income received and payment made: Received wages Received lottery prize Received life insurance proceeds Made an IRA Contribution Received a gift from his parents Loss on a stock investment (capital loss) Made a charitable contribution to qualified organization Paid alimony to his ex-wife (divorce finalized in 2015) Received interest income from Intel bonds Paid child support Received interest income on City of Santa Fe bonds Paid property taxes on personal residence Paid home mortgage interest Number of personal & dependency exemptions $ 50,000 10,000 20,000 3,000 3,400 4,300 5,200 3,750 2,600 8,500 1,800 7,500 6,900 1. List the income items and amounts from above that will be excluded from gross income on Edgar's 1040 tax return. Calculate the total amount of excluded income. 2. List the income items and amounts from above that will be included in gross income on Edgar's 1040 tax return. Calculate the total amount of included income. (Hint: items cannot be both excluded and included in gross income!) 3. Calculate Edgar's AGI as reported on his 1040 tax return. 4. List the items and amounts from above that would be included in itemized deductions. Calculate the total amount of itemized deductions. 5. Calculate Edgar's taxable income as reported on his 1040 tax return.

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Lets break down each part of Edgars tax situation 1 Excluded Income Received a gift from his parents ... View the full answer