Comprehensive Problem $5-1$

Anthony Stork $($birthdate August $2,1979)$ is a single taxpayer. Anthony's earnings and withholdings as the manager of a local casino for $2023$ are reported on his Form W$-2($see separate tab$).$

Anthony pays his ex$-$spouse, Salty Pans, $\backslash$$$3,900$ per month in accordance with their February $12,2020,$ divorce decree. When their $12-$year$-$old child $($in the ex$-$spouse's custody$)$ reaches the age of $18,$ the payments are reduced to $\backslash (\backslash$$ $2,800\backslash )$ per month. His ex$-$spouse's Social Security number is $\backslash (554-44-5555\backslash ).$

In $2023,$ Anthony purchased a new car and so he kept track of his sales tax receipts during the year. His actual sales tax paid was $\backslash (\backslash$$ $3,856\backslash )$ for the car and $\backslash (\backslash$$ $925\backslash )$ for all other purchases. For purposes of completing this tax return$*,$ you may assume that Anthony's actual sales tax exceeds the IRS estimated sales tax in $2023.$

Anthony participates in a high$-$deductible health plan and is eligible to contribute to a health savings account. His HSA earned $\backslash$$$75$ in $2023.$

During the year, Anthony paid the following amounts $($all of which can be substantiated$)$:

In $2023,$ Anthony inherited over $\backslash$$$500,000$ from his father, Howard, who died in $2023.$ Although Anthony invested a large portion, he also made a $\backslash (\backslash$$ $50,000\backslash )$ cash donation to the Stork School of Engineering at Reno State University $($see separate letter$).$

Anthony also received a Form $1098$ and a combined Form $1099-$DIV $($see separate tabs$).$

Required:

Complete Anthony's federal tax return for $2023.$ Use Form $1040,$ Schedule $1,$ Schedule A$,$ Schedule B$,$ Form $8889,$ and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return.

$-$ Make realistic assumptions about any missing data.

$-$ Anthony had health coverage for the entire year, and he does not want to contribute to the presidential election campaign.

$-$ Enter all amounts as positive numbers.

$-$ If an amount box does not require an entry or the answer is zero, enter $"0".$

$-$ If required, round any dollar amount to the nearest dollar.

$*$Note: There is a difference between Schedule A in CNow and the SM$/$ProConnect version. The CNow $/$ textbook provides a sales tax amount which assumes that it exceeds the IRS estimated amount. The ProConnect $/$ solution manual version uses the IRS estimated amount.

Anthony's earnings and withholdings as the manager of a local casino for $2023$ are reported on his form W$-2$:

Form $\backslash (\backslash$mathbf$\{$W$\}\backslash )-22023$

Copy B$-$To Be Filed With Employee's FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service. The Stork School of Engineering

In $2023,$ Anthony inherited over $\backslash (\backslash$$ $500,000\backslash )$ from his father, Howard, who died in $2023.$ Although Anthony invested a large portion, he also made a $\backslash (\backslash$$ $50,000\backslash )$ cash donation to the Stork School of Engineering at Reno State University.

November $15,2023$

Anthony Stork

$800$ North Sierra Street

Reno, NV $89503$

Dear Mr$.$ Stork,

Our hearts are overflowing with gratitude! Thank you for your recent contribution of $\backslash (\backslash$$ $50,000\backslash )$ to the newly named Stock School of Engineering at Reno State University. We are very thankful for your commitment to the students, faculty, and staff of the college.

It was an honor knowing your father and with your generous gift, it is an honor to name the college after him. Howard always supported the university and the college of engineering. We miss him every day.

Thanks to donors like you, Reno State University will continue to be a resource for students far into the future. Thank you again for your support.

With extreme gratitude,

Obadiah Stain

President

Reno State University

Donation amount: $\backslash (\backslash$$ $50,000\mathrm{.}00\backslash )$

Reno State University is tax$-$exempt under $501($c$)(3)$ of the U$.$S$.$ Internal Revenue Code

Tax ID: $95-2119198$

No goods or services were exchanged for this donation.

Reno State University