I need help with this project for class and with creating a tax return in this word doc, please help with for the given problem of Tax Credits. Please provide ample solutions for all the following areas of concern.Please read word document thoroughly. Other information is based on real-world tax brackets/laws for 2023. Please assist in every box on the Excel/word document.

Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 5,17,19 & 23, The two youngest live at home all year with their parents and qualify as their dependents. The oldest Roger got married on 5/5 2023 and lives with his wife, Jane. The 19-year-old Tabitha is a full-time student working towards her bachelor's in fine arts at Savannah College of Art & Design. She lives in Savannah, GA. during the academic year and returns to her parents' home during breaks. Tony and Jeannie provide you with the following information regarding their upcoming 2023 tax return: 1) Tony Nelsen isan aerospace engineer he runs an engineering firm, Nelson Engineering (NE), as a sole proprietorship since 2010. 3) B 9 d) g) K NE has very lucrative contracts with numerous acrospace companies and during 2023 it will earn $647,000. NE rents an office downtown where they meet with clients and conducts business. The rentincludes all utilities. NE will pay $36,000 in rent expense for 2023. The landlord offered to maintain the same yearly rent cost and Tony could receive an additional month's rent for free if he prepays his 2024-year rent in advance. Tony has agreed and will pay an additional $36,000 on December 1, 2023, to cover January 2024 through January 2025 rent. NE obtained a business loan from SunTrust Bank and paid $2.500 in prepaid interest for July 1, 2023, through June 30, 2024. NE has a few employees, including an electrical engineer, a part-time engineering intern and an office manager. The combined wages for these emplayees will be $221,000. Payroll taxes for these employees is estimated as $18,000. Tony took different business clients to see several home Miami Heat games during January and February of 2023 followed by dinners at nearby restaurants where business was discussed. The meals were not considered lavish. The total cost for the Heat tickets and accompanying meals were 1,400 and $700, respectively. In April 2023, Tony flew to a two-day engineering convention held in Phoentx, AZ requiring a two-night hotel stay. While there, Tony noted that the convention dress code was business formal when he thought it would be casual. Tony immediately purchased a business sult for $400 (not considered lavish) at a nearby department store, All food costs were covered by the convention organizers. Other trip costs that Tony paid were airplane ticket $480 and hotel lodgings cost $160ight for two nights. The depreciation for the year on the fixed assets owned by NE are estimated to total $4.500. All of NE's business transactions are properly documented and supported by receipts/invoices. In addition to deductible portion of the items listed above the business will have an additional $3,800 of deductible other expenses. 2) 3) 4 Jeannie Nelson is an artist: she works part-time teaching art 2 days a week at a magnet art school in their town, She earned $12,000 in salary from Cocoa Beach, School of the Arts, the following items were withheld from her gross wages, 1,200 federal income taxes, $120 state income tax, $744 social security, and $174 Medicare. She is not covered under their insurance plan as she only works 15 hours a week. She also volunteers 5 hours a week with the Girl Scouts of America as an art instructor. Jeannie is known for beautiful Arabian influenced abstracts. During May and August of this past year she had a virtual exhibition and sold paintings at each event. She estimates that the cost of each painting in canvas and supplies is about $425. a) The sales are as follows: i) May- 19 paintings fora total of 24,000 if) August - 12 paintings for a total of 18,000 b) She paints in a studio located in a separate building on the property of their home. The expenses related to the studio allocated based on square footage are as follows: 1) Depreciation $3,600 ii) Taxes 51,900 iii) Utilities 53,400 The Nelsons who utilize the specific identification method for to mini year: aluing their investments nize gains, had the following assets/investments activities occur during this a) 4/5/2023 sold for $20.000 common stock in York Co. that was purchased for $14.000. on 2/14/2009, The shares of York Co are qualified small business stock under 1202. b) 7/1/2023 sold 200 shares of common stock in New Co, for $17,000. They had purchased 100 shares on 8/7/2017 for 6,500 and 200 shares on 8/7/2018 for 15.000. ) 9/15/2023 sold 150 shares of common stock of City Co for $14,000 total that were purchased for $19,500 on 3/18/2023. d) 8/5/2023 sold for 28,000 antique coins that Jeannie inherited from her great-aunt on [anuary 16, 2023, when its FMV was 26,500. Her great aunt had a basis in the coin of $2,000. &) 10/1/2023, they sold 2 portion of a parcel of land with a small building for $62,000 that had a basis of $23,000 and was purchased in 2003. $25.000 of the gain is unrecaptured 1250 property. f) 8/15/2023 sold stock in Space Explorers Inc. for $31,500 that they had purchased on 8/14/2016 for $18,000. g) The Nelsons have a Long-term loss carryover of $14.000 from 2022, h) Interestincome earned from their various accounts is a total of $1,400. None of these amounts are related to municipal bonds. 3) On April 13 of 2023, the couple paid their $1,500 in state taxes due with their 2022 state tax return. They paid state income tax for 2023 of 4,200. The couple's estimated state and local sales taxes for 2023 will be a total of $2,800. The property taxes paid on their principal residence for 2023 is $7,600, excluding any amounts allotted to the artist studio. 6) OnOctober 1+ they donated a parcel with a separate small building to the Girl Scouts of America for use as an art studio. They had purchased the acres in 2003 and recently divided a portion for sale (see 4e above). This portion has a basis of $41,500. 4 professional appraiser determined the fair market value of the property was $92,000 on September 24 of 2023. 7) This year the Nelsons had several medical expenses not reimbursed by insurance these are as follows: 2) Tony & Jeannie both received corrective eye surgery, at a total cost of 6,000 b) $ 3,200 for braces for the 12-year-old ) $2,600 in co-payments for covered medical procedures. d) $700 in payments for over-the-counter medications. ] $2.500 at the urgent care clinic for Jeannie's brother Sam who hurt his back helping her setup the art exhibits in May. He is not their dependent. f) They pay $8.800 in health insurance premiums to cover the family. 8) The Nelson's spent 16,200 in home mortgage interest on their original acquisition cost of $800,000 from 2015. They do not have any additional mortgage debt. 9) The Nelson's spent $45,000 for Tabitha's tuition at SCAD, $3,200 books, and supplies and $10,000 for room and board. 10) The Nelsons paid quarterly estimated tax payments of $21.000 per quarter, based on their 2022 liability which was a total of $84.000. Based on their 2022 income of $280.000 the Nelsons did not receive any of the stimulus checks. Using the above information answer the following questions using the excel spreadsheet attached, be sure to show your work: A. (10 points) Compute the net taxable income from Nelson Engineering. B. (10 points) Compute the net taxable income related to Jeannie's Abstracts. . (20 points) Compute the gains/(losses) related to the Nelson family's sale of assets and the appropriate classifications D. (10 points) Compute the itemized deductions of the Nelson family. E. (10 points) Review and compute the amount deductible as QBL F. (10 points) Compute the Adjusted Gross Income of the Nelsons. G. (10 points) Compute the taxable income for the Nelsons. H. (10 points) Based on the information provided determine if the Nelsons qualify for any tax credits and if so, compute the credit(s). 1. (10 points) Compute the total tax Hability for 2023 considering the character of the taxable income computed in part G above. Understanding the spreadsheet. The spreadsheet contains several sheets where information needs te be entered. Many of the items on the first sheet, titled \"Summary\" are input on other sheets within the spreadsheet and carryover to the summary sheet. Within the spreadsheet items that require your attention and input are highlighted in a blue background. Lines where the amount is computed in another area of the spreadsheet are indicated in orange and double underlined. Thus, you should not need to input anything in these cells. Computed cells are in grey. These cells also do not require input. A B C D E F G H J Tony & Jeannie Nelson N Tax Credits 2023 4 Child & Dependent Tax Credit Explanation/Computations as needed 5 # of children eligible for credit 6 credit per child amount 7 # of other dependents 8 Per other dependent credit amount 9 Total Child Tax Credit before phase-out 10 11 Adjusted Gross Income (AGI) 12 Phase-out threshhold 13 AGI In Excess of threshold 14 Credit Phase-out Increment 15 Amount of Credit Phase-out 16 Net Child Tax Credit 17 18 Total Net Child Tax Credit on Return 19 20 21 American Opportunity Tax Credit 22 Amount of eligible expenses 23 Amount of credit before phase-out 24 25 Adjusted Gross Income (AGI) 26 Phase-out threshhold 27 AGI In Excess of threshold 28 Phase-out range for MFJ 29 Phase-out % 30 Amount of Credit Phase-out 31 Net American Opportunity Tax Credit 32 33