Please completethe2021 Form 1040(Stop after completing Line 12a, round upto the nearest dollar),Schedule-1 and ScheduleAfor the taxpayer:Julie Anderson isa project manager and her wage is 74,300....

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Please complete
the2021 Form 1040(Stop after completing Line 12a, round up
to the nearest dollar),









Schedule-1 and Schedule
A


for the taxpayer:
















Julie Anderson is
a project manager and her wage is 74,300. Julie's father passed away on April
14. She inherited her father’s cottage (vacation home) in Montana and 80,000
cash. She used the 80,000 to invest in an annuity product that pays her $
10,000 per year for the next 10 years. The first yearly payment ($10,000) was
received on December 15th, 2021

















Her 2021 filing status
is Single. She also has the following items for 2019:

















Interest income from:







Capital
One
200








City of San Francisco
municipal bond 600








US Treasury
bond.
800

















Ordinary dividends from
her investment in Wells Fargo… $400. All the dividends are qualified for the
15% tax rate.

















She also bought 50
shares Apple Inc. stock (AAPL) when the price was $100 per share. AAPL's market
closing price for December 2021 is $250 per share. No shares were sold during
the year.

















During the year she went
to Wynn Las Vegas and won $ 1,300 in a poker game. However, she lost $2,000 at
another casino.

















She received $4,000
insurance payout from AFLAC. The insurance policy was bought by herself.

















She has the following
refunds and withholdings in 2021, and took the standard deduction on her 2018
federal tax return.

















California state income
tax refund……… 250








State income tax
withheld from her paycheck…………………. .4200








Federal income tax withheld
from her paycheck………………. 9000








Social security tax paid
as an employee............. 5340

















She owns and lives in
her house in Fresno, CA and has the following expenses:

















Home mortgage loan
interest………………… 8700








Home mortgage loan
points (not reported on Form 1098)….. 200








Real estate tax on her
house………………… 4000








Personal-use car loan
interest……………….. 2000

















She also paid 2000 of
qualified student loan interest.

















Ms. Anderson had a
medical procedure and incurred qualified medical costs of $30,000. Her health
insurance policy pays 80% of the medical cost and Julie paid the remaining 20%
out of her own pocket.


















Julie also wanted to ask you the following questions:









  • Where/On

    which schedule can she deduct any utilities and insurance on the cottage

    if she rents out the vacation home for income next year?



  • Can

    she deduct any fees paid to attorneys to execute her father’s will this

    year?



  • Can she deduct any fees paid to

    you to prepare her tax return this year?



Answered 1 days AfterOct 07, 2022

Answer To: Please completethe2021 Form 1040(Stop after completing Line 12a, round upto the nearest...

Sandeep answered on Oct 09 2022
57 Votes
2021 Form 1040
Fo
rm1040 2021U.S. Individual Income Tax Return Department of the Treasury—Internal Revenue Service (99) OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space.
Filing Status
Check only
one box.
Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW)
If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child’s name if the qualifyi
ng
person is a child but not your dependent ▶
Your first name and middle initial Last name Your social security number
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. Apt. no.
City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code
Foreign country name Foreign province/state/county Foreign postal code
Presidential Election Campaign
Check here if you, or your
spouse if filing jointly, want $3
to go to this fund. Checking a
box below will not change
your tax or refund.
You Spouse
At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? Yes No
Standard
Deduction
Someone can claim: You as a dependent Your spouse as a dependent
Spouse itemizes on a separate return or you were a dual-status alien
Age/Blindness You: Were born before January 2, 1957 Are blind Spouse: Was born before January 2, 1957 Is blind
Dependents (see instructions):
If more
than four
dependents,
see instructions
and check
here ▶
(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
1 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . . . . . 1
Attach
Sch. B if
required.
2a Tax-exempt interest . . . 2a b Taxable interest . . . . . 2b
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
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
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
10 Adjustments to income from Schedule 1, line 26 . . . . . . . . . . . . . . . 10
11 Subtract line 10 from line 9. This is your adjusted gross income . . . . . . . . . ▶ 11
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.
12a Standard deduction or itemized deductions (from Schedule A) . . 12a
b Charitable contributions if you take the standard deduction (see instructions) 12b
c Add lines 12a and 12b . . . . . . . . . . . . . . . . . . . . . . . 12c
13 Qualified business income deduction from Form 8995 or Form 8995-A . . . . . . . . . 13
14 Add lines 12c and 13 . . . . . . . . . . . . . . . . . . . . . . . 14
15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0- . . . . . . . . . 15
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2021)
Form 1040 (2021) Page 2
16 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 . . 16
17 Amount from Schedule 2, line 3 . . . . . . . . . . . . . . . . . . . . 17
18 Add lines 16 and 17 . . . . . . . . . . . . . . . . . . . . . . . . 18
19 Nonrefundable child tax credit or credit for other dependents from Schedule 8812 . . . . . 19
20 Amount from Schedule 3, line 8 . . . . . . . . . . . . . . . . . . . . 20
21 Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . . . . 21
22 Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . . . . . . . . . 22
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
25 Federal income tax withheld from:
a Form(s) W-2 . . . . . . . . . . . . . . . . . . 25a
b Form(s) 1099 . . . . . . . . . . . . . . . . . . 25b
c Other forms (see instructions) . . . . . . . . . . . . . 25c
d Add lines 25a through 25c . . . . . . . . . . . . . . . . . . . . . ....
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