David Mitchell is employed as a software engineer at Coastal Tech Solutions in San Diego, California. His wife, Laura, works as a registered nurse at Pacific Bay Medical Center in La Jolla. David and Laura sold their old home and purchased a new home this year and live there with their three children: Ethan $(19),$ Lily $(14),$ and Sophia $(10).$ Ethan is a full$-$time student at SDSU and earned $$6,000$ from a summer internship. None of the children provided more than half of their own support during the year. Income and Financial Transactions for $2024$ A: David received $$185,000$ from Coastal Tech Solutions, and Laura received $$89,700$ from Pacific Bay Medical Center. $$ B: The couple have various investments. In $2024,$ they earned $$620$ from San Diego municipal bonds, $$1,150$ from U$.$S$.$ Treasury bonds, and $$90$ from their joint savings account at Pacific Coast Credit Union. $$ C: David invests in stocks. In $2024,$ he bought and sold various stocks, realizing a short$-$ term capital gain of $$5,600,$ a short$-$term capital loss of $$3,700,$ a long$-$term capital gain of $$7,800,$ and a long$-$term capital loss of $$4,000.$ He also received dividend income of $$560.$ D: In February $2024,$ David was involved in a car accident, and the at$-$fault driver$$s insurance company paid him $$2,500$ for medical expenses, $$400$ for emotional distress, and $$3000$ punitive damage. $$ E: In spring $2024,$ the Mitchells sold their previous home for $$1\mathrm{.}6$ million $($net of commissions and fees$),$ which they originally purchased $10$ years ago for $$950,000.$ At the same time, they bought a new home for $$2\mathrm{.}1$ million, financing it with a $$500,000$ mortgage. In $2024,$ they paid $$28,500$ in total property taxes and $$12,300$ in mortgage interest. $$ F: David$$s father passed away in December $2023,$ leaving David a $$100,000$ life insurance benefit, which he received in February $2024.$ In $2024,$ each of the children also received a $$50,000$ investment portfolio as an inheritance, generating $$2950$ in interest income for each child during the year. $$ G: In March $2024,$ David injured his arm and back while mountain biking in Torrey Pines, causing him to miss work for two weeks. His disability insurance provider paid $2$ him $$4,200$ in benefits, which he received on April $5,2024.$ Coastal Tech Solutions paid $$650$ in premiums for this insurance, included as taxable compensation in his W$-2.$ H: Coastal Tech Solutions covered conference travel expenses for David to attend a technology summit in Seattle. The company provided him with a $$1,200$ travel stipend, which covered flights and hotel costs. $$ I: In $2024,$ the Mitchells spend a total of $$2,000$ on prescription glass, dentists, doctor visits, and prescription drugs for the whole family. $$ J: During the family's summer trip to Las Vegas, David decided to try his luck at a casino. On his first attempt, he won $$2,000$ and, feeling lucky but satisfied, he took his winnings and immediately left. In September $2024,$ Laura won a $$200$ gift basket in a charity raffle at Lily$$s school. In December $2024,$ David received a $$500$ gift card from Coastal Tech Solutions in recognition of his $5$th work anniversary with the company. $$ K: During the year, the couple donated $$15,000$ to various charitable organizations. $$ L: The couple paid $$7,000$ tuition for Ethan and $$6,000$ in after$-$school care costs for Sophia. $$ M: In $2024,$ David and Laura received a $$1,050$ state income tax refund from their $2023$ return. They took itemized deduction in $2023$ since it was $$6,000$ more than standard deduction. They also paid $$11,000$ in state income tax for $2024.$ N: David$$s employer withheld $$32,000$ in federal income tax, and Laura$$s employer withheld $$8,000$ for federal income tax. They did not make any estimated tax payments. Their previous year$$s tax federal liability was $$40,000.$

Requirements:

$1.$ Please determine each of the family members filing status and filing requirements $($whether or not they need to file$)$ for $2024.$

$2.$ Please use the income tax formula to determine the Mitchell$$s federal income taxes dues or refund for $2024.$ Make sure that you list all components in the income tax formula, such as each different item of gross income, for AGI and from AGI deductions, tax credits, tax prepayments etc. For income excluded from gross income or deductions not taken, you may list with $$0.$ For each of the transaction listed above, provide detailed breakdown of your amounts or calculations for partial credits.

$3.$ Determine the amount of FICA taxes the Mitchell$$s are required to pay.

$4.$ What is the due date of the family$$s tax return? When is the due date of their tax liabilities, if any?

$5.$ Would the Mitchell$$s be subject to underpayment penalty and what is the amount, if any? Assume the federal short$-$term rate is $5$ percent.

$6.$ What do they need to do to avoid the underpayment penalty?

$7.$ Are the three children subject to Kiddie tax? Why or why not? If they are subject to Kiddie tax, are there any ways for them to avoid Kiddie tax? Explain.

Please show all your work in Excel worksheet. ASAP