Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth’s birthday is July 4, 1975, and her Social Security number is 123-45-6785. She did not engage in any virtual currency transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. Beth received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. The following information is shown on Beth’s Wage and Tax Statement (Form W–2) for 2021. Line Description Amount 1 Wages, tips, other compensation $65,000.002 Federal income tax withheld 9,500.003 Social Security wages 65,000.004 Social Security tax withheld 4,030.005 Medicare wages and tips 65,000.006 Medicare tax withheld 942.5015 State Arizona16 State wages, tips, etc. 65,000.0017 State income tax withheld 1,954.00During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099–INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth’s dividend payments on a Form 1099–DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2021. On her 2020 Federal income tax return, she used the standard deduction. Fees earned from her part-time tax practice in 2021 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2021, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2021, she sold the stock for $14 a share. On January 2, 2021, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2021, for $55 a share. Both stock transactions were reported to Beth on Form 1099–B; basis was not reported to the IRS. Beth bought a used sports utility vehicle for $6,000 on June 5, 2021. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2021, she sold the vehicle to a friend for $6,500. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business. Cost of personal computer $7,000Cost of printer 2,000Furniture 3,000Supplies 650Fee paid to computer consultant 3,500Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of § 179. These items were placed in service on January 15, 2021, and used 100% in her business. Although her employer suggested that Beth attend an in-person conference on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending. The $1,420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for medical bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and credit card interest was $320. Beth contributed $2,080 in cash to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated Federal income taxes of $1,000. Part 1—Tax Computation Compute Beth Jordan’s 2021 Federal income tax payable (or refund due), and complete her 2021 tax return using appropriate forms and schedules. include schedules needed
Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth’s birthday is July 4, 1975, and her Social Security number is 123-45-6785. She did not engage in any virtual currency transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. Beth received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored.
The following information is shown on Beth’s Wage and Tax Statement (Form W–2) for 2021.
Line Description Amount
1 Wages, tips, other compensation $65,000.00
2 Federal income tax withheld 9,500.00
3 Social Security wages 65,000.00
4 Social Security tax withheld 4,030.00
5 Medicare wages and tips 65,000.00
6 Medicare tax withheld 942.50
15 State Arizona
16 State wages, tips, etc. 65,000.00
17 State income tax withheld 1,954.00
During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099–INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth’s dividend payments on a Form 1099–DIV.
Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2021. On her 2020 Federal income tax return, she used the standard deduction.
Fees earned from her part-time tax practice in 2021 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service.
On February 8, 2021, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2021, she sold the stock for $14 a share.
On January 2, 2021, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2021, for $55 a share. Both stock transactions were reported to Beth on Form 1099–B; basis was not reported to the IRS.
Beth bought a used sports utility vehicle for $6,000 on June 5, 2021. She purchased the vehicle from her brother-in-law, who was
During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business.
Cost of personal computer $7,000
Cost of printer 2,000
Furniture 3,000
Supplies 650
Fee paid to computer consultant 3,500
Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of § 179. These items were placed in service on January 15, 2021, and used 100% in her business.
Although her employer suggested that Beth attend an in-person conference on current developments in corporate
During the year, Beth paid $300 for prescription medicines and $2,875 for medical bills. Medical insurance premiums were paid for her by her employer.
Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and credit card interest was $320. Beth contributed $2,080 in cash to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated Federal income taxes of $1,000.
Part 1—Tax Computation
Compute Beth Jordan’s 2021 Federal income tax payable (or refund due), and complete her 2021 tax return using appropriate forms and schedules. include schedules needed
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