1-Note: This problem is for the 2022 tax year.

Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda is employed part-time as a paralegal for a law firm.

During 2022, the Deans had the following receipts:

Line Item Description	Amount	Amount
Salaries ($60,000 for Lance, $42,500 for Wanda)		$102,500
Interest income
City of Albuquerque general purpose bonds	$1,000
Ford Motor company bonds	1,100
Ally Bank certificate of deposit	400
Total		2,500
Child support payments from John Allen		7,200
Annual gifts from parents		26,000
Settlement from Roadrunner Touring Company		90,000
Lottery winnings		600
Federal income tax refund (for tax year 2021)		400

Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child supportthe alimony payments were to terminate if Wanda remarried.

In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. Because the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained.

The Deans had the following expenditures for 2022:

Line Item Description	Amount	Amount
Medical expenses (not covered by insurance)		$7,200
Taxes
Property taxes on personal residence	$3,600
State of New Mexico income tax (includes amount withheld from wages during 2022)	4,200
Total		7,800
Interest on home mortgage (First National Bank)		6,000
Charitable contributions (cash)		3,600
Life insurance premiums (policy on Lance's life)		1,200
Contribution to traditional IRA (on Wanda's behalf)		6,000
Traffic fines		300
Contribution to the reelection campaign fund of the mayor of Santa Fe		500
Funeral expenses for Wayne Boyle		6,300

The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.

The Deans' household includes the following, for whom they provide more than half of the support:

Line Item Description	Social Security Number	Birth Date
Lance Dean (age 42)	123-45-6786	12/16/1980
Wanda Dean (age 40)	123-45-6787	08/08/1982
Penny Allen (age 19)	123-45-6788	10/09/2003
Kyle Allen (age 16)	123-45-6780	05/03/2006
Wayne Boyle (age 75)	123-45-6785	06/15/1947

Penny graduated from high school on May 9, 2022, and is undecided about college. During 2022, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on December 20, 2022. For the past few years, Wayne qualified as a dependent of the Deans.

Federal income tax withheld is $3,900 (Lance) and $1,600 (Wanda). The proper amount of Social Security and Medicare tax was withheld.

Required:

Determine the Federal income tax for 2022 for the Deans on a joint return by FINSHE the appropriate forms. Use Form 1040 and Schedule 1 to complete this tax return. They do not own and did not use any digital assets during the year, and they do not want to contribute to the Presidential Election Campaign Fund. If an overpayment results, it is to be refunded to them.

• Make realistic assumptions about any missing data.
• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• Use the tax rate schedules included with this problem. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.
• 2-Note: This problem is for the 2022 tax year.

Logan B. Taylor is a widower whose spouse, Sara, died on June 6, 2020. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2022, he had the following receipts:

Salary				$ 80,000
Interest income
Money market account at Omni Bank		$300
Savings account at Boone State Bank		1,100
City of Springfield general purpose bonds		3,000		4,400
Inheritance from Daniel				60,000
Life insurance proceeds				200,000
Amount from sale of St. Louis lot				80,000
Proceeds from estate sale				9,000
Federal income tax refund (for 2021 tax overpayment)				700

Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2022. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2017, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2022, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died.

Logan's expenditures for 2022 include the following:

Medical expenses (including $10,500 for dental)				$13,500
Taxes
State of Missouri income tax (includes withholdings during 2022)		$4,200
Property taxes on personal residence		4,500		8,700
Interest on home mortgage (Boone State Bank)				5,600
Contribution to church (paid pledges for 2022 and 2023)				4,800

While Logan and his dependents are covered by his employer's health insurance policy, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2022, upon the advice of his pastor, he prepaid his pledge for 2023.

Logan's household, all of whom he supports, includes the following:

	Social Security Number	Birth Date
Logan Taylor (age 48)	123-45-6787	08/30/1974
Helen Taylor (age 70)	123-45-6780	01/13/1952
Asher Taylor (age 23)	123-45-6783	07/18/1999
Mia Taylor (age 22)	123-45-6784	02/16/2000

Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married.

Federal income tax of $4,200 was withheld from his wages.

Required:

Compute Logan's income tax for 2022. If Logan has any overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes were withheld. Logan does not own and did not use any virtual currency during the year, and he does not want to contribute to the Presidential Election Campaign Fund.

• Make realistic assumptions about any missing data.
• Enter all amounts as positive numbers except any losses. Use the minus sign to indicate a loss.
• If an amount box does not require an entry or the answer is zero, enter "0".
• It may be necessary to complete the other tax schedules before completing Form 1040.
• Use the included tax rate schedules to compute the tax. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.
• 3-Note: This problem is for the 2022 tax year.

Daniel B. Butler and his spouse Freida C. Butler file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-45-6780. Dan was born on January 15, 1971, and Freida was born on August 20, 1971.

During 2022, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home:

1. Gina, their daughter, age 22, a full-time student, who married on December 21, has no income of her own and did not file a joint return with her husband, Casey, who earned $10,600 during 2022. Gina's Social Security number is 123-45-6788.
2. Willie, their son, age 19, graduated high school in May 2022. He is taking a leap year and will not begin college until 2023. He had gross income of $6,300 in 2022. Willie's Social Security number is 123-45-6787.
3. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786.

Dan was employed as a manager by WJJJ, Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Corbin, KY 40701). Selected information from the W-2 forms provided by the employers is presented below. Dan and Freida use the cash method.

Line	Description	Dan	Freida
1	Wages, tips, other compensation	$74,000	$86,000
2	Federal income tax withheld	11,000	12,400
17	State income tax withheld	2,960	3,440

Freida sold a house on December 30, 2022, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) on the January 10, 2023, closing date.

Other income (as reported on 1099 Forms) for 2022 consisted of the following:

Dividends on CSX stock (qualified)		$4,200
Interest on savings at Second Bank		1,600
Interest on City of Corbin bonds		900
Interest on First Bank CD		382

The $382 from First Bank was an original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2022. The CD was purchased on October 1, 2019, for $14,995, and the yield to maturity was 3.3%.

Dan participated on a game show and won a cash prize of $7,000.

In addition to the above information, Dan and Freida's itemized deductions included the following:

Paid on 2022 Kentucky income tax		$700
Personal property tax paid		600
Real estate taxes paid		1,800
Interest on home mortgage (Corbin S&L)		4,900

Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $6,000. They have never owned or used any digital assets, and they do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%.

Required:

Compute Dan and Freida's 2022 Federal income tax payable (or refund due). Use Form 1040 and Schedules 1, B, 8812 and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. If there is a tax overpayment, the Butlers would like a refund. If additional tax is due, assume no underpayment penalty applies.

It may be necessary to complete the tax schedules before completing Form 1040.

• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• When computing the tax liability, do not round your immediate calculations.
• If required, round your answers to the nearest dollar.
• Make realistic assumptions about any missing data.
• Use the Tax Rate Schedule provided. Do not use the Tax Tables.