Cecil C. Seymour is a 64-year-old widower. He had income for 2022 as follows:

The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil has received 22 payments through 2022. Cecil’s 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January 2, 2022. She used the money to start a new business. Cecil does not charge her interest because she cannot afford to pay it, but he does expect to collect the principal eventually. Sarah is living with Cecil until the business becomes profitable. Except for housing, Sarah provides her own support from her business and 1,600 in dividends on stocks that she inherited from her mother.

Other relevant information is presented below.

• Expenses on rental townhouse:• State income taxes paid: $3,500

• County personal property taxes paid: $3,100

• Payments on estimated 2022 Federal income tax: $5,900

• Charitable contributions of cash to Alto Baptist Church: $7,400

• Federal interest rate: 4%

• Sales taxes paid: $912

Compute Cecil’s 2022 Federal income tax payable (or refund due).

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Pension from former employer Interest income from Alto National Bank Interest income on City of Alto bonds Dividends received from IBM stock held for over one year Collections on annuity contract he purchased from Great Life Insurance Social Security benefits Rent income on townhouse $39,850 5,500 4,500 2,000 5,400 14,000 9,000