Michael Jordan (birthdate March 1, 1975) is a single taxpayer. Michael’s earnings and withholdings as a departmental manager for 2021 are reported on his Form W-2, See included copy above:
Michael’s other income includes interest on a savings account at Chase National Bank of $13,680.
Michael pays his ex-wife, Juanita Vanoy, $3,800 per month in accordance with their April 19, 2013, divorce decree.
When their 2-year-old child (in the ex-wife’s custody) reaches the age of 18, the payments are reduced to $2,700 per month.
His ex-wife’s Social Security number is 594-22-1234.
In 2021, Michael purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid is $3,701, which exceeds the estimated amount per the IRS tables.
Michael earned $85 interest in 2021 from a City of Las Vegas bond.
During the year, Michael paid the following amounts (all of which can be substantiated):
Interest on American Express credit Card $1,761
Automobile loan interest 4,200
Insurance for Family car 910
IRA Contributions 6,250
Personal residence property taxes 2,795
Contributions to a HSA 2,825
Fee to get Income Tax return prepared 850
Contribution to the Red Cross (Charitable, Cash) 1,320
Contribution to the Family’s Church (Cash) 3,310
The Democratic Political Party (Contribution, cash) 275
The Metropolitan Opera Dinner Fund Raiser Ticket 130
but the value of the dinner is only $30
Required: Complete a manual tax return for Michael’s federal tax return for 2021.
Up load the following forms in their proper place:
Form 1040,
Schedule 1,
Schedule A,
Schedule B,
and Form 8889 to complete this tax return.
Make realistic assumptions about any missing data. After completion of Michael’s federal tax return, please answer the following questionson a seperate piece of paper: A Tax Rate Schedule is included below for the calculation of Mr. Jordan’s taxes.
If taxable income is over—
but not over—
the tax is:
10% of the amount over $0
$970 plus 12% of the amount over $9,700
$4,543 plus 22% of the amount over $39,475
$14,382 plus 24% of the amount over $84,200
$32,748 plus 32% of the amount over $160,725
$46,628 plus 35% of the amount over $204,100
no limit
$153,798 plus 37% of the amount over $510,300