Form 1040 Department of the Treasury- Internal Revenue Service (99) U.S. Individual Income Tax Return Married filing Filing Status Check only one box. Single jointly 2020 OMB No. 1545-0074 Married filing separately (MFS) IRS Use Only-Do not write or staple in this space. 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 qualifying person is a child but not your dependent. ► Your first name and middle initial Last name Reba Dixon If joint return, spouse's first name and middle initial Last name Your social security number 111-11-1111 Spouse's social security number Home address (number and street). If you have a P.O. box, see instructions. 19010 N.W. 135th Street Apt. no. City, town, or post office. If you have a foreign address, also complete spaces below. Lawrenceville GA 30043 State ZIP code Foreign country name Foreign province/state/county Foreign postal code At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? 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 Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness Dependents You: Were born before January 2, 1956 Are blind Spouse: (see instructions): (2) Social security number Was born before January 2, 1956 (3) Relationship to you Is blind (4) if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents If more than Heather Dixon 222-22-2222 Daughter four dependents, see instructions < Prev 2 3 of 3 Next >
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Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2021. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental.
Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather’s support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia.
Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,000 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses.
Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,800 in state income taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:
| Insurance premiums | $ 7,952 |
|---|---|
| Medical care expenses | $ 1,100 |
| Prescription medicine | $ 350 |
| Nonprescription medicine | $ 100 |
| New contact lenses for Heather | $ 200 |
Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $900 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn’t able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion.
A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,500 interest income from City of Denver municipal bonds. Overall, Reba’s stock portfolio appreciated by $12,000, but she did not sell any of her stocks.
Heather reported $6,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather’s only source of income for the year.
Reba had $10,000 of federal income taxes withheld by her employer. Heather made $1,000 of estimated tax payments during the year. Reba did not make any estimated payments. Assume Reba received the correct advance payment for her 2021 individual recovery credit.
Using the information from part a-1, Complete pages 1 and 2, Schedule 1, and Schedule 3 of Form 1040 for Reba.
Reba Dixon's address is 19010 N.W. 135th Street, Lawrenceville, GA 30043.
Social security numbers:
Reba Dixon: 111-11-1111
Heather Dixon: 222-22-2222
(Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Input all the values as positive numbers. Use 2021 tax rules regardless of year on tax form. Round your intermediate computations and final answers to the nearest whole dollar amount.)
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