Note: This problem is for the 2022 tax year. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1976, and her Social Security number is 123-45-6785. She did not engage in any digital asset transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2022. Line Description Amount 1 Wages, tips, other compensation $65,000.00 2 Federal income tax withheld 9,500.00 3 Social Security wages 65,000.00 4 Social Security tax withheld 4,030.00 5 Medicare wages and tips 65,000.00 60 Medicare tax withheld 942.50 15 State Arizona State income tax withheld 65,000.00 1,954.00 16 17 State wages, tips, etc. During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2022. On her 2021 Federal income tax return, she used the standard deduction. Fees earned from her part-time tax practice in 2022 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2022, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2022, she sold the stock for $14 a share. On January 2, 2022, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2022, for $55 a share. Both stock transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS. Beth bought a used sports utility vehicle for $6,000 on June 5, 2022. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2022, she sold the vehicle to a friend for $6,500. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business. Cost of personal computer $7,000 Cost of printer 2,000 Furniture Supplies 3,000 650 Fee paid to computer consultant 3,500 During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2022. On her 2021 Federal income tax return, she used the standard deduction. Fees earned from her part-time tax practice in 2022 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2022, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2022, she sold the stock for $14 a share. On January 2, 2022, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2022, for $55 a share. Both stock transactions were reported to Beth on Form 1099-B; basis was not reported to the IRS. Beth bought a used sports utility vehicle for $6,000 on June 5, 2022. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2022, she sold the vehicle to a friend for $6,500. During the year, Beth records revenues of $16,000 from the sale of a software program she developed. She incurred the following expenditures in connection with her software development business. Cost of personal computer Cost of printer Furniture Supplies Fee paid to computer consultant $7,000 2,000 3,000 650 3,500 Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of 179. These items were placed in service on January 15, 2022, and used 100% in her business. Although her employer suggested that Beth attend an in-person conference on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending. The $1,420 included $200 for the cost of meals. During the year, Beth paid $300 for prescription medicines and $2,875 for medical bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and credit card interest was $320. Beth contributed $2,080 in cash to various qualifying charities during the year. Professional dues and subscriptions totaled $350. Beth paid estimated Federal income taxes of $1,000. Required: Compute Beth Jordan's 2022 Federal income tax payable (or refund due), and complete her 2021 tax return using appropriate forms and schedules and the Qualified Dividends and Capital Gain Tax Worksheet. Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless instructed otherwise. It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the 2022 Tax Rate Schedule provided. Do not use the Tax Tables. misti uCCIONIS z Add lines 1a through 1h 1z 65,000 2a Tax-exempt interest . . 2a b Taxable interest . 2b 1,700 Attach Sch. B if required. 3a Qualified dividends... 2,200 b Ordinary dividends 3b 2,200 4a IRA distributions 4a b Taxable amount. 4b Standard 5a Pensions and annuities 5a b Taxable amount 5b Deduction for- 6a Social security benefits b Taxable amount 6b Single or Married filing If you elect to use the lump-sum election method, check here (see instructions). C separately, $12,950 Married filing Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . 7 jointly or Qualifying surviving spouse, $25,900 Head of household, $19,400 If you checked any box under Standard Deduction, see instructions. 10 Adjustments to income from Schedule 1, line 26 8 Other income from Schedule 1, line 10. 80 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income. 9 9 10 11 Subtract line 10 from line 9. This is your adjusted gross income. 11 12 Standard deduction or itemized deductions (from Schedule A) 12 13 Qualified business income deduction from Form 8995 or Form 8995-A. 13 14 Add lines 12 and 13 .. 14 15 Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income . . . 15 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2022) Beth R. Jordan 123-45-6785 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 Tax and 16 Credits 17 Amount from Schedule 2, line 3 16 17 18 Add lines 16 and 17. . 18 19 Child tax credit or credit for other dependents from Schedule 8812. 19 20 Amount from Schedule 3, line 8 20 21 Add lines 19 and 20 21 21 Form 1040 (2022) Page 2 Form 1040 Tax (see instructions). Check if any from Form(s): 1 8814 2 4972 3 Tax and 16 16 Credits 17 17 Amount from Schedule 2, line 3 18 Add lines 16 and 17 18 19 Child tax credit or credit for other dependents from Schedule 8812. 19 20 Amount from Schedule 3, line 8 20 21 Add lines 19 and 20 21 22 Subtract line 21 from line 18. If zero or less, enter -0- 22 23 Other taxes, including self-employment tax, from Schedule 2, line 21 23 24 Add lines 22 and 23. This is your total tax 24 Payments 25 Federal income tax withheld from: a Form(s) W-2 b Form(s) 1099 25a 25b 25c c Other forms (see instructions). d Add lines 25a through 25c. 26 If you have a 2022 estimated tax payments and amount applied from 2021 return qualifying child, attach Sch. EIC. 27 Earned income credit (EIC). 27 28 Additional child tax credit from Schedule 8812. 28 29 American opportunity credit from Form 8863, line 8. 29 30 Reserved for future use. 30 31 Amount from Schedule 3, line 15. 31 32 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits 32 33 Add lines 25d, 26, and 32. These are your total payments 33 Refund 34 If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid. 34 Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . . 35a 35a Direct deposit? b Routing number XXXXXXXXX c Type: Checking Savings See instructions. d Account number XXXXXXXXXXXXXXXXX 36 Amount of line 34 you want applied to your 2023 estimated tax. 36 Amount 37 Subtract line 33 from line 24. This is the amount you owe. 25d 26