Interview Notes Joanne is a data entry clerk, age 26, and single. Joanne has investment income and a consolidated brokers statement. Joanne is self employed delivering food for Delicious Deliveries on the weekends. She received a Form 1099-NEC and a Form 1099-K. She received additional cash payments of $455. Joanne uses the cash method of accounting. She uses business code 492000. Joanne provided a statement from the food delivery service indicating the fees paid for the year. These fees are considered ordinary and necessary for the food delivery business: o $150 for insulated box rental o $50 for vehicle safety inspection (required by Delicious Deliveries) o $600 for Delicious Deliveries fees Joanne also kept receipts for the following out-of-pocket expenses: o $100 for tolls o $120 for car washes o $150 for tickets for illegal parking o $150 for snacks and lunches Joanne consumed while working Joannes record keeping application shows she has driven a total of 2,500 miles during and between deliveries. 1,200 miles were driven from 1/01/2022 - 6/30/2022, and 1,300 miles were driven from 7/01/2022 - 12/31/2022. She also drove 1,500 miles between her home and the first and last delivery of each day. o She placed her only vehicle, an SUV, in service on 3/15/2020. The total mileage on her SUV for tax year 2022 was 11,000 miles. Of that, 7,000 were personal miles. Joanne will take the standard business mileage rate. Joanne took an early distribution from her IRA in April. She used part of the IRA distribution to pay off her educational expenses. Joanne is paying off her student loan from 2017. Joanne is working towards her Masters of Education degree to start a new career as an Associate Professor. She took a few college courses this year at an accredited college. If Joanne has a refund, she would like it deposited into her checking account.

a) Joanne's net long-term capital gain reported on Schedule D is $_______.

b) Joanne cannot claim the $150 for illegal parking tickets as a business expense on Schedule C. a. True b. False

c) What is the amount Joanne can take as a student loan interest deduction on her Form 1040, Schedule 1? a. $3,250 b. $2,500 c. $750 d. $0

D) How many miles can Joanne use to calculate her standard mileage deduction? ______________

e) Joanne meets the qualifications to claim the Lifetime Learning Credit. a. True b. False

f) What is Joanne's additional 10% tax on the early withdrawal from her IRA? a. $0 b. $10 c. $240 d. $250

g) Joanne can make estimated tax payments to avoid owing tax next year. a. True b. False