complete proper tax research using statutory and administrative sources of tax laws evaluate and communicate the tax implications of financial and business decisions and transactions in a clear and concise manner for planning and compliance 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 2 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