ACC$421($Submit soft pdf file in D$2$L under CONTENT$/$ASSIGNMENTS$)$

Tax Software Assignment # $1-$ Tax Return Problem

Note: This problem is for the $2022$ tax year.

Mark E$.$ James and Joan A$.$ Bond, each age $42,$ married on September $7,2015.$ Mark and Joan will

file a joint return for $2022.$ Mark's Social Security number is $111-11-1112.$ Joan's Social Security

number is $111-11-1113,$ and she adopted "James" as her married name. They live at $201$

Riverdale Dr$,$ Augusta, GA $30901.$

Mark was divorced from Sally James in March $2017.$ Under the divorce agreement, Mark is to

pay Sally $$1,000$ per month for the next $8$ years or until Sally's death, whichever occurs first.

Mark pays Sally $$12,000$ in $2022.$ In addition, in January $2022,$ Mark pays Sally $$50,000,$ which

is designated as being for her share of the marital property. Also, Mark is responsible for all

prior years' income taxes. Sally's Social Security number is $123-45-6788.$

Mark's salary for $2022$ is $$125,000,$ and his employer, Facebook, Inc. $($Federal I.D$.$ No$.98-$

$,$ provides him with group term life insurance equal to three times his annual salary.

His employer withheld $$24,000$ for Federal income taxes and $$6,000$ for state income taxes. The

proper amounts were withheld for FICA taxes.

Joan recently graduated from law school and is employed by Legal Liability, Inc. $($Federal I.D$.$

No$.11-1111111),$ as a prosecutor. She receives a salary of $$45,000$ in $2022.$ Her employer

withheld $$8,000$ for Federal income taxes and $$3,000$ for state income taxes. The proper

amounts were withheld for FICA taxes.

Joan has $$1,000$ in qualified dividends on Mesa Corporation stock she inherited, and she

received taxable interest income of $$500$ from ABC Company. Mark and Joan receive a

$$1,800$ refund on their $2021$ state income taxes. They claimed the standard deduction on their

$2021$ Federal income tax return.

Mark and Joan pay $$6,500$ interest and $$1,500$ property taxes on their personal residence in

Their charitable contributions total $$3,500($all to their church$).$ They paid sales taxes of

$$1,500,$ for which they maintain the receipts. Both spouses want to contribute to the

Presidential Election Campaign, and neither have ever owned or used any virtual currency.

Required:

THIS RETURN IS FOR $2022-$ TAX LAWS IN EFFECT FOR $2022$ WILL APPLY

Compute the James' net tax payable $($or refund due$)$ for $2022.$ Use and PRINT OUT Form $1040$

and Schedule $1,$ Schedule A$,$ Schedule B$,$ Form $8879$ and the Client Letter to complete this

tax return. You are required to complete the $2022$ Federal tax return using $2022$ Intuit

ProConnect Tax Software. You are required to submit the filing copy of the return in pdf

format in D$2$L $($courses$)$ using the link under the assignments tab.