complete a basic individual tax return using a standard $1040$ and the

appropriate schedules

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Scenario: Year ending December $31,2023$

The taxpayers are Bill Beau Bagin $($social security number $333-33-3330),$ born January

$17,1973,$ and his wife, Sara Lee Bagin $($social security number $444-44-4440),$ born April

$12,1973.$ Both have good eyesight, and live with their two children, Ned and Megan, at

$789$ N$.$ Code Drive, Chicago, Illinois $60699,(312)679-9999.$

Mr$.$ Bagin wants to contribute $$3$ of his income tax to the Presidential Election

Campaign Fund. Mrs$.$ Bagin elects not to contribute.

The Bagins$$ son, Ned, is a $17-$year$-$old high school student, born June $15,2005.$ Their

daughter, Megan, is twelve years old, born August $9,2010$ and a junior high school

student. Neither child had any income. Ned$$s social security number is $300-11-0001$ and

Megan$$s social security number is $300-33-0003.$

Wages and Expenses Generally

During $2023,$ Mrs$.$ Bagin was employed as an elementary school teacher, employed at

Elementary School $0205,$ Main Street, Chicago, IL $60699.$ The school$$s employer ID# is

$99-6665432.$

Her Form W$-2$ for $2023$ reports the following:

Box $1.$ Wages, tips and other compensation $$61,985$

Box $2.$ Federal income tax withheld $ $5,026$

Box $4.$ Social security tax withheld $ $3,847$

Box $6.$ Medicare tax withheld $ $899$

Box $17.$ State income tax $ $2,790$

Mr$.$ Bagin works part$-$time at Joker Grocery, West Maple, Chicago, IL $60689.$

His Form W$-2$ for $2023$ reports the following:

Box $1.$ Wages, tips and other compensation $$15,000$

Box $2.$ Federal income tax withheld $ $1,200$

Box $4.$ Social security tax withheld $ $858$

Box $6.$ Medicare tax withheld $ $201$

Box $17.$ State income tax $ $600$

Neither Mr$.$ nor Mrs$.$ Bagin is covered by their employer$$s retirement plan.

Mrs$.$ Bagin made a $$1,500$ contribution to a traditional IRA and a $$2,000$ contribution to

a Roth IRA in $2023.$ Mr$.$ Bagin decided against making a contribution to a traditional

IRA.

The Bagins received a $$400$ state income tax refund. They used the standard deduction

of $$25,900$ on their $2022$ federal income tax return. The Bagins also received a $$550$

federal income tax refund.

The Bagins made federal estimated tax payments of $$2,100$ for $2023.$

The Bagins incurred the following medical expenses during $2023$:

$$ prescription drugs $$1,000$

$$ doctor bills $$6,724$

$$ hospital bills $$4,256$

$$ transportation $ $100$

$$ eyeglasses $ $500$

The Bagins own their residence. They paid $2023$ real estate taxes $$4,300$ on July $1,$

$2023.$

Mr$.$ and Mrs$.$ Bagin paid the total of $$9,250$ home mortgage interest on the residence.

Their mortgage company is Any Bank on South Street in Chicago, IL $60689.$ Their

account # is $11000011.$

They paid the following personal interest in $2023$:

$$ $$1,625$ to finance Mrs$.$ Bagin$$s car, and

$$ $ $400$ in credit card interest.

$3$

The Bagins gave $$1,750$ in cash to various recognized charities; no individual gift was

$$250$ or more; all charities sent an acknowledgment of the contribution. They had no

carryover charitable contributions.

Mrs$.$ Bagin bought $$345$ of supplies for her classroom.

Dividends and Interest

During $2023,$ the Bagins received $$875$ in interest from the Heartland National Bank,

EID $99-9990001$ and $$150$ as nominees for Julia Major $($Mrs$.$ Bagin$$s mother from the

Third National Savings and Loan, EID $55-0001234.$

They received $$550$ in interest from tax$-$exempt bonds issued by the State of Illinois.

The Bagin$$s received the following qualified dividends: $$745$ from E&Z Tax Preparation,

Inc., and $$425$ from Secure Money Market Fund.

Sale of Stock and Other Investments

During $2023,$ the Bagins sold the following capital assets:

$(1)$ On February $2,100$ shares of Haba, Inc. were sold for $$1,100.$ They had been

purchased on November $18,2009$ for $$3,500.$

$(2)$ On November $5,300$ shares of Perco, Inc. were sold for $$12,000.$ They had

been purchased on January $5,2008$ for $$7,000.$

$(3)$ On December $4,100$ shares of Squire, Inc. were sold for $$12,500.$ They had

been purchased on January $4,1998$ for $$9,000.$