Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2020. Alfred...

Transcribed Image Text:

Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2020. Alfred and Beulah will file a joint return for 2022. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she has chosen to use "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorced from Sarah Old in March 2017. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred paid Sarah $15,000 in 2022. In addition, in January 2022, Alfred paid Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2022 is $150,000. He is an executive working for Cherry, Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $22,800 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She received a salary of $42,000 in 2022. Her employer withheld $6,300 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah received taxable interest income of $500. Alfred and Beulah received a $1,900 refund on their 2021 state income taxes; they claimed the standard deduction on their 2021 Federal income tax return. Alfred and Beulah paid $4,500 interest and $1,450 property taxes on their personal residence in 2022. They paid sales taxes of $1,400, for which they maintain the receipts. Alfred and Beulah have never owned or used any digital assets, and they do not want to contribute to the Presidential Election Campaign. Required: Compute the Olds' net tax payable (or refund due) for 2022. Use Form 1040 and Schedule 1 to complete this tax return. It may be necessary to complete the tax schedule and worksheet 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". Make realistic assumptions about any missing data. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2022 Tax Rate Schedule provided. Do not use the Tax Tables. Complete Form 1040 for the Olds. Form Department of the Treasury-Internal Revenue Service 1040 U.S. Individual Income Tax Return Filing Status Married filing jointly Your first name and middle initial Last name Alfred E. Old If joint return, spouse's first name and middle initial Beulah A. Old Last name Home address (number and street). If you have a P.O. box, see instructions. 211 Blackstone Drive 2022 OMB No. 1545-0074 IRS Use Only Apt. no. City, town, or post office. If you have a foreign address, also State ZIP code complete spaces below. Atlanta, GA 30304 Foreign country name Foreign province/state/county Foreign postal code Your social security number 111-11-1109 Spouse's social security number 123-45-6780 Presidential Election Campaign Do you, or your spouse if filing jointly, want $3 to go to this fund. Selecting an option below will not change your tax or refund. No Digital Assets Standard Deduction Age/Blindness Dependents If more than four dependents, see instructions At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Someone can claim: None You: None Spouse: None (see instructions): (1) First name Last name No (2) Social security (3) Relationship (4) Check the box if qualifies for (see instructions): to you Credit for other dependents number Child tax credit and check here. Income 1a Total amount from Form(s) W-2, box 1 (see instructions) 1a 192,000 Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. b Household employee wages not reported on Form(s) W-2 c Tip income not reported on line 1a (see instructions) . d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) e Taxable dependent care benefits from Form 2441, line 26. f Employer-provided adoption benefits from Form 8839, line 29 If you did not get a Form g Wages from Form 8919, line 6. . . . W-2, see instructions. h Other earned income (see instructions) i Nontaxable combat pay election (see instructions) 1b 1c 1d 1e 1f 1g 1h 1i 1z 192,000 z Add lines 1a through 1h Attach Sch. B if required. 2a Tax-exempt interest . . 2a b Taxable interest 2b 3a Qualified dividends. .. 3a b Ordinary dividends 3b 4a IRA distributions . . . . 4a b Taxable amount 4b Standard 5a Pensions and annuities 5a b Taxable amount 5b Deduction for- 6a Social security benefits b Taxable amount 6b Single or Married filing separately, $12,950 c If you elect to use the lump-sum election method, check here (see instructions) 7 500 Married filing jointly or Qualifying surviving spouse, $25,900 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 10. 9 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income 10 Adjustments to income from Schedule 1, line 26 . . 8 9 192,800 10 15,000 Head of 11 Subtract line 10 from line 9. This is your adjusted gross income household, $19,400 11 177,800 If you checked 12 Standard deduction or itemized deductions (from Schedule A). 12 25,900 any box under Standard Deduction, see instructions. 13 Qualified business income deduction from Form 8995 or Form 8995-A 13 14 Add lines 12 and 13.... 14 15 Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income 15 101,600 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2022) Form 1040 (2022) Alfred E. and Beulah A. Old 111-11-1109 Tax and 16 Tax (see instructions). Check if any from Form(s): 1 8814 20 4972 3 Credits 17 Amount from Schedule 2, line 3 16 17 18 Add lines 16 and 17 18 19 Child tax credit or credit for other dependents from Schedule 8812 19 20 Amount from Schedule 3, line 8. 20 21 Add lines 19 and 20. . 21 Page 2 22 Subtract line 21 from line 18. If zero or less, enter -0- 22 500 23 Other taxes, including self-employment tax, from Schedule 2, line 21 23 24 Add lines 22 and 23. This is your total tax 24 Payments 25 Federal income tax withheld from: a Form(s) W-2 b Form(s) 1099 25a 25b 25c c Other forms (see instructions) d Add lines 25a through 25c.. 25d 26 2022 estimated tax payments and amount applied from 2021 return 26 If you have a 27 Earned income credit (EIC) .. 27 qualifying child, attach Sch. EIC. 28 Additional child tax credit from Schedule 8812 28 American opportunity credit from Form 8863, line 8 29 29 Reserved for future use. 30 30 31 Amount from Schedule 3, line 15. . 31 32 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits 32 33 Add lines 25d, 26, and 32. These are your total payments 33 29,100 Refund 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid. 34 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . . 35a 15,376.14 Direct deposit? b Routing number XXXXXXXXX : Checking Savings See instructions. d Account number XXXXXXXXXXXXXXXXX XXXXXXXX 36 Amount of line 34 you want applied to your 2023 estimated tax 36 Amount 37 You Owe 38 Subtract line 33 from line 24. This is the amount you owe. For details on how to pay, go to www.irs.gov/Payments or see instructions. Estimated tax penalty (see instructions). 37 38 Third Party Designee Do you want to allow another person to discuss this return with the IRS? See instructions Designee's name Phone no. Yes. Complete below. No Personal identification number (PIN) Sign Here Joint return? See instructions. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Executive Spouse's occupation Lawyer If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Spouse's signature. If a Date Keep a copy for your records. joint return, both must sign. Phone no. Email address Paid Preparer Preparer's name Preparer's signature Self-Prepared Date PTIN Firm's name Use Only Phone no. Check if: Self-employed Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2020. Alfred and Beulah will file a joint return for 2022. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she has chosen to use "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304. Alfred was divorced from Sarah Old in March 2017. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred paid Sarah $15,000 in 2022. In addition, in January 2022, Alfred paid Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788. Alfred's salary for 2022 is $150,000. He is an executive working for Cherry, Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $22,800 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes. Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She received a salary of $42,000 in 2022. Her employer withheld $6,300 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes. Alfred and Beulah received taxable interest income of $500. Alfred and Beulah received a $1,900 refund on their 2021 state income taxes; they claimed the standard deduction on their 2021 Federal income tax return. Alfred and Beulah paid $4,500 interest and $1,450 property taxes on their personal residence in 2022. They paid sales taxes of $1,400, for which they maintain the receipts. Alfred and Beulah have never owned or used any digital assets, and they do not want to contribute to the Presidential Election Campaign. Required: Compute the Olds' net tax payable (or refund due) for 2022. Use Form 1040 and Schedule 1 to complete this tax return. It may be necessary to complete the tax schedule and worksheet 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". Make realistic assumptions about any missing data. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2022 Tax Rate Schedule provided. Do not use the Tax Tables. Complete Form 1040 for the Olds. Form Department of the Treasury-Internal Revenue Service 1040 U.S. Individual Income Tax Return Filing Status Married filing jointly Your first name and middle initial Last name Alfred E. Old If joint return, spouse's first name and middle initial Beulah A. Old Last name Home address (number and street). If you have a P.O. box, see instructions. 211 Blackstone Drive 2022 OMB No. 1545-0074 IRS Use Only Apt. no. City, town, or post office. If you have a foreign address, also State ZIP code complete spaces below. Atlanta, GA 30304 Foreign country name Foreign province/state/county Foreign postal code Your social security number 111-11-1109 Spouse's social security number 123-45-6780 Presidential Election Campaign Do you, or your spouse if filing jointly, want $3 to go to this fund. Selecting an option below will not change your tax or refund. No Digital Assets Standard Deduction Age/Blindness Dependents If more than four dependents, see instructions At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Someone can claim: None You: None Spouse: None (see instructions): (1) First name Last name No (2) Social security (3) Relationship (4) Check the box if qualifies for (see instructions): to you Credit for other dependents number Child tax credit and check here. Income 1a Total amount from Form(s) W-2, box 1 (see instructions) 1a 192,000 Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. b Household employee wages not reported on Form(s) W-2 c Tip income not reported on line 1a (see instructions) . d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) e Taxable dependent care benefits from Form 2441, line 26. f Employer-provided adoption benefits from Form 8839, line 29 If you did not get a Form g Wages from Form 8919, line 6. . . . W-2, see instructions. h Other earned income (see instructions) i Nontaxable combat pay election (see instructions) 1b 1c 1d 1e 1f 1g 1h 1i 1z 192,000 z Add lines 1a through 1h Attach Sch. B if required. 2a Tax-exempt interest . . 2a b Taxable interest 2b 3a Qualified dividends. .. 3a b Ordinary dividends 3b 4a IRA distributions . . . . 4a b Taxable amount 4b Standard 5a Pensions and annuities 5a b Taxable amount 5b Deduction for- 6a Social security benefits b Taxable amount 6b Single or Married filing separately, $12,950 c If you elect to use the lump-sum election method, check here (see instructions) 7 500 Married filing jointly or Qualifying surviving spouse, $25,900 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 10. 9 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income 10 Adjustments to income from Schedule 1, line 26 . . 8 9 192,800 10 15,000 Head of 11 Subtract line 10 from line 9. This is your adjusted gross income household, $19,400 11 177,800 If you checked 12 Standard deduction or itemized deductions (from Schedule A). 12 25,900 any box under Standard Deduction, see instructions. 13 Qualified business income deduction from Form 8995 or Form 8995-A 13 14 Add lines 12 and 13.... 14 15 Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income 15 101,600 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2022) Form 1040 (2022) Alfred E. and Beulah A. Old 111-11-1109 Tax and 16 Tax (see instructions). Check if any from Form(s): 1 8814 20 4972 3 Credits 17 Amount from Schedule 2, line 3 16 17 18 Add lines 16 and 17 18 19 Child tax credit or credit for other dependents from Schedule 8812 19 20 Amount from Schedule 3, line 8. 20 21 Add lines 19 and 20. . 21 Page 2 22 Subtract line 21 from line 18. If zero or less, enter -0- 22 500 23 Other taxes, including self-employment tax, from Schedule 2, line 21 23 24 Add lines 22 and 23. This is your total tax 24 Payments 25 Federal income tax withheld from: a Form(s) W-2 b Form(s) 1099 25a 25b 25c c Other forms (see instructions) d Add lines 25a through 25c.. 25d 26 2022 estimated tax payments and amount applied from 2021 return 26 If you have a 27 Earned income credit (EIC) .. 27 qualifying child, attach Sch. EIC. 28 Additional child tax credit from Schedule 8812 28 American opportunity credit from Form 8863, line 8 29 29 Reserved for future use. 30 30 31 Amount from Schedule 3, line 15. . 31 32 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits 32 33 Add lines 25d, 26, and 32. These are your total payments 33 29,100 Refund 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid. 34 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . . 35a 15,376.14 Direct deposit? b Routing number XXXXXXXXX : Checking Savings See instructions. d Account number XXXXXXXXXXXXXXXXX XXXXXXXX 36 Amount of line 34 you want applied to your 2023 estimated tax 36 Amount 37 You Owe 38 Subtract line 33 from line 24. This is the amount you owe. For details on how to pay, go to www.irs.gov/Payments or see instructions. Estimated tax penalty (see instructions). 37 38 Third Party Designee Do you want to allow another person to discuss this return with the IRS? See instructions Designee's name Phone no. Yes. Complete below. No Personal identification number (PIN) Sign Here Joint return? See instructions. Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation Executive Spouse's occupation Lawyer If the IRS sent you an Identity Protection PIN, enter it here (see inst.) If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Spouse's signature. If a Date Keep a copy for your records. joint return, both must sign. Phone no. Email address Paid Preparer Preparer's name Preparer's signature Self-Prepared Date PTIN Firm's name Use Only Phone no. Check if: Self-employed