Please post with 2021 form 1040 with schedules a and b. Have
values clearly shown. Thank you. I have seen an answer for this
going around with a 1040 form that is too small to read. Please do
not answer with that or I will have to report you.
Prepare a 2021 individual tax return using the following fact
pattern. Compute net tax payable or refund
due for Alice and Bruce Byrd for 2021.
Alice J. and Bruce M. Byrd are married taxpayers who file a joint
return. Their social security numbers
are 123-45-6789 and 111-11-1122, respectively. Alice’s birthday is
September 21, 1968 and Bruce’s is
June 27, 1963. They live at 473 Revere Avenue, Newtown, NY 10187.
Alice is the office manager for
Ames Dental Clinic, 433 Broad Street. Newtown, NY 10187(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).
He is also a self -employed attorney and has a part time
practice.
The following information is shown on their Wage and Tax Statements
(Form W-2) for 2021.
Line Description Alice Bruce
1. Wages, tips and other compensation $52,600 $61,500
2. Federal income tax withheld 4,180 5,990
3. Social Security wages 52,600 61,500
4. Social Security tax withheld 3,261 3,813
5. Medicare wages and tips 52,600 61,500
6. Medicare tax withheld 763 892
15. State NY NY
16. State wages, tips, etc. 52,600 61,500
17. State income tax withheld 2,280 2,990
The following information is for Bruce’s law practice:
Income $65,000
Utilities... $3,000
Rent $18,000
Supplies.... $5,000
Salaries $10,000
Disbursements... $3,000
The Byrds support their two children, Cynthia (born January 15,
2006, Social Security number 123-45-
6788) and John (born February 7, 2008, Social Security number
123-45-6786)..
During 2021, the Byrds furnished 60% of the total support of
Bruce’s widower father, Sam Byrd (born
March 6, 1934, 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 beneficiary of a policy on Sam’s
life, received life insurance proceeds of $600,000 on December
28th.
The Byrds had the following expenses relating to their personal
residence during 2021:
Property taxes $10,720
Qualified interest on home mortgage 9,130
Repairs to roof 4,780
Utilities 3,810
Homeowner’s insurance 2,290
The following facts relate to medical expenses for 2021:
Medical insurance premiums $4,380
Doctor bill for Sam incurred in 2020 and not paid until 2021
7,760
Operation for Sam 7,310
Prescription medicines for Sam 860
Hospital expenses for Sam 2,850
Reimbursement from insurance company, received in 2021 3,000
The medical expenses for Sam represent most of the 60% Bruce
contributed toward his father’s support.
They also engaged in a few stock transactions. They sold 100 shares
of Green Company Stock for
$10,000 on February 15, 2021. Their cost basis is $2,000. They had
purchased the stock on March 15,
2009. They sold 50 shares of Orange Company Stock for $8,000 on
March 3, 2021. They had purchased
the stock on December 20, 2017 for $12,000.
Other relevant information follows:
When they filed their 2020 state return in 2021, the Byrds paid
additional state income taxes of
$950.
During 2021, Alice and Bruce attended a dinner dance sponsored by
the Ames Police Disability
Association (a qualified charitable organization). The Byrds paid
$400 for the tickets. The cost
of comparable entertainment would normally be $160.
The Byrds contributed $4,800 to Ames Presbyterian Church and gave
used clothing(cost of
$1,100 and fair market value of $450) to the Salvation Army. All
donations are supported by
receipts and are in very good condition.
In 2021, the Byrds received interest income of $1,895, which was
reported on a Form 1099-INT
from Second National Bank.
Bruce paid $320 for an annual subscription to the Journal of
Certified Public Accountants.
Please post with 2021 form 1040 with schedules a and b. Have values clearly shown. Thank you. I have seen an answer for
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Please post with 2021 form 1040 with schedules a and b. Have values clearly shown. Thank you. I have seen an answer for
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