ACC $330-$ Tax Return #$1$

Required:

Complete Keith and Jennifer Hamilton's $2022$ federal income tax return.

Use the information given and, if any information is missing, use AND note reasonable assumptions.

Questions $($from classmates$)$ and answers will be posted on Canvas and are expected to be taken into consideration in preparing your return.

Use the Tax Rate Schedule to calculate their tax on line $16.$ Assume the only tax and credits to report in the Tax and Credits section of Form $1040$ is from Form $8812$ and also assume they do not have any additional payments other than Federal income tax withheld. They would like any overpayment refunded.

Use the provided Form $1040$ and supporting schedules as well as the applicable instructions on the IRS websites.

Return is to be hand$-$written on forms provided and turned in by the end of class on February $21.$ Please include a cover sheet with your name and Tax Return #$1$ noted. If applicable, include an assumption page following the cover sheet.

Facts:

Keith and Jennifer are married and live in a home they own at $3678$ Blue Sky Drive, Henderson, Nevada $89052.$

Keith and Jennifer have three children who lived with them all year: Joshua $(17),$ Danielle $(14),$ and Sara $(10).$ They provided all of their support. They provided the following information for their children:

Joshua's birthday is $6/30/2003$ and his Social Security number is $454-54-5454.$

Danielle's birthday is $8/12/2006$ and her Social Security number is $343-43-4343.$

Sara's birthday is $5/13/2010$ and her Social Security number is $232-32-3232.$

Keith is employed as an airline pilot for Flyby Airlines in Las Vegas, Nevada. Keith's birthday is $\frac{10}{12}\frac{?}{1975}$ and his Social Security number is $535-22-4466.$ His W$-2$ follows.

Jennifer is employed as a teacher's assistant at Small World Elementary School, in Henderson, Nevay Jennifer's birthday is $7/29/1978$ and her Social Security number is $535-44-2255.$ Her W$-2$ follows:

W$-2$ Wage and tar statement $2022$

$5.$ Keith and Jennifer provided the following personal information:

They do not wish to file separately. They agree Keith is to be listed as the spouse on the return.

Keith does not and Jennifer does want to contribute to the presidential election campaign.

They do not have digital assets.

Neither have foreign bank accounts or trust.

During $2022$ from their joint accounts, Keith and Jennifer received $$550$ in interest from Las Vegas municipal bonds, $$1,070$ interest from U$.$S$.$ Treasury bonds, and $$65$ from their savings account and $$22$ from their checking account at SCD Credit Union. Keith had dividends from IBM of $$20$ and Jennifer had dividends of $$10$ from Apple.

On January $21,2022,$ Jennifer was involved in a car accident. Because the other driver was at fault, the other driver's insurance company paid Jennifer $$1,350$ for medical expenses relating to her injuries from the accident and $$300$ for emotional distress from the accident. She received payment on March $15,2022.$

Keith's father died on November $15,2021.$ Keith received a $$100,000$ death benefit from his father's life insurance policy on February $8,2022.$

Jennifer's grandmother died on March $10,2022,$ leaving Jennifer with an inheritance of $$30,000.($She received the inheritance on May $12,2022.)$

On July $25,2022,$ Keith's aunt Beatrice gave Keith $$10,000$ because she wanted to let everyone know that Keith is her favorite nephew.

On September $29,2022,$ Jennifer won an iPad valued at $$500$ in a raffle at the annual fair held at

$133$

Joshua's high school.

Keith and Jennifer did not buy, sell, exchange, or otherwise acquire any financial interest in a virtual currency.

Jennifer received jury duty pay of $$200$ on September $10,2022.$

Keith received $$24,000$ in alimony per a divorce decree dated July $5,2016.$

Keith had $$3,000$ gambling winnings in $2022$ and $$300$ in $2023.$

Assume the Schedule $C$ was prepared by another member of the firm with the following information:

It is Keith's Schedule C for income from providing personal flight training. His business name is Hamilton Flight Training. It is cash basis, he materially participated in the operation that he started in $2020.$ He made payments requiring Form $1099$ and he filed them.

Line $1$:$$50,000$

He paid the following expenses in $2022$:

Advertising $$5,000$

Interest paid to bank: $$2,000$

Professional Services: $$3,000$

Rent of airplane hanger: $$24000$