An Excel spreadsheet using formulas and cell referencing is required for this assignment. I am willing to provide feedback by email and if you prepare your solution no later than $8$:$30$ am on Tuesday, March $12.$ All assignments will be submitted by email. Attach the original file to an email to jrlivingstone@wcu.edu $($not through Canvas$).$ Do not send me a link to a shared file.

Gary and Wendy are married and file a joint tax return claiming their seven children, ages $7,9,11,13,15,17$ and $19,$ as dependents. They pay Susan Smith $$26,000$ per year to care for their children after school and provide some house cleaning $($you can ignore household employment taxes$).$ Information for $2023$ includes the following $($cut & paste table into Excel$)$:

AGI including earned and unearned income $445,000$

Gary's earned income $380,000$

Wendy's earned income $50,000$

Federal income taxes $($all paid in $2023)82,300$

State and local income taxes $($all paid in $2023)22,300$

Real estate property taxes $7,800$

Home mortgage interest $14,800$

Charitable contributions $8,400$

Pay Susan Smith for childcare $26,000$

$($You can ignore any possible additional medicare tax and net investment income tax.$)$

Starting with AGI, show each step of the tax formula and calculate taxable income, tax $($before credits$),$ child tax credit, child & dependent care credit, total tax credits, total tax $($after credits$),$ tax due $($refund due$).$ The rows could be labeled as follows:

AGI

Standard Deduction

Itemized deductions

Add rows here to calculate itemize deductions

Taxable Income

Tax on Taxable Income $($before credits$)$

Add data here for calculating taxes

Child tax credit

Add rows here to calculate child tax credit

Child & dependent care credit

Add rows here to calculate child & dependent care credit

Total Tax Credits

Total tax after credits

Prepayments

Tax due $($refund due$)$