Note: This problem is for the 2023 tax year.

Daniel B. Butler and his spouse Freida C. Butler file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1112, and Freida's is 123-45-6780. Dan was born on January 15, 1972, and Freida was born on August 20, 1972.

During 2023, Dan and Freida furnished over half of the total support of each of the following individuals, all of whom still live at home:

1. Gina, their daughter, age 22, a full-time student, who married on December 21, has no income of her own and did not file a joint return with her husband, Casey, who earned $10,600 during 2023. Gina's Social Security number is 123-45-6788.
2. Willie, their son, age 19, graduated high school in May 2023. He is taking a leap year and will not begin college until 2024. He had gross income of $6,300 in 2023. Willie's Social Security number is 123-45-6787.
3. Ben, their oldest son, age 26, is a full-time graduate student with gross income of $5,200. Ben's Social Security number is 123-45-6786.

Dan was employed as a manager by WJJJ, Inc. (employer identification number 11-1111111, 604 Franklin Street, Corbin, KY 40702), and Freida was employed as a salesperson for Corbin Realty, Inc. (employer identification number 98-7654321, 899 Central Street, Corbin, KY 40701). Selected information from the W-2 forms provided by the employers is presented below. Dan and Freida use the cash method.

Line	Description	Dan	Freida
1	Wages, tips, other compensation	$74,000	$86,000
2	Federal income tax withheld	11,000	12,400
17	State income tax withheld	2,960	3,440

Freida sold a house on December 30, 2023, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) on the January 10, 2024, closing date.

Other income (as reported on 1099 Forms) for 2023 consisted of the following:

Dividends on CSX stock (qualified)		$4,200
Interest on savings at Second Bank		1,600
Interest on City of Corbin bonds		900
Interest on First Bank CD		382

The $382 from First Bank was an original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2023. The CD was purchased on October 1, 2020, for $14,995, and the yield to maturity was 3.3%.

Dan participated on a game show and won a cash prize of $7,000.

In addition to the above information, Dan and Freida's itemized deductions included the following:

Paid on 2023 Kentucky income tax		$700
Personal property tax paid		600
Real estate taxes paid		1,800
Interest on home mortgage (Corbin S&L)		4,900

Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $6,000. They have never owned or used any digital assets, and they do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%.

Required:

Compute Dan and Freida's 2023 Federal income tax payable (or refund due). Use Form 1040 and Schedules 1, B, 8812 and the Qualified Dividends and Capital Gain Tax Worksheet to complete this tax return. If there is a tax overpayment, the Butlers would like a refund. If additional tax is due, assume no underpayment penalty applies.

It may be necessary to complete the tax schedules before completing Form 1040.

• Enter all amounts as positive numbers.
• If an amount box does not require an entry or the answer is zero, enter "0".
• When computing the tax liability, do not round your immediate calculations.
• If required, round your answers to the nearest dollar.
• Make realistic assumptions about any missing data.
• Use the Tax Rate Schedule provided. Do not use the Tax Tables.

Schedule 8812

Question Content Area

Complete Daniel and Freida C Butler's Schedule 8812.

SCHEDULE 8812 (Form 1040) Department of the Treasury Internal Revenue Service	Credits for Qualifying Children and Other Dependents Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Schedule8812 for instructions and the latest information.	OMB No. 1545-0074
2023 Attachment Sequence No. 47

Name(s) shown on return Daniel and Freida C Butler

Your social security number 111-11-1112

Part I

Child Tax Credit and Credit for Other Dependents

1	Enter the amount from line 11 of your Form 1040, 1040-SR, or 1040-NR . . . . . . . . . . . . . . . . . . . . . . . . . . .	1	fill in the blank 6ce17f0c0028fe5_1
2a	Enter income from Puerto Rico that you excluded . . . . . . . . . . . . . . . . . . . . . . . .	2a
b	Enter the amounts from lines 45 and 50 of your Form 2555 . . . . . . . . . . . . . . . . .	2b
c	Enter the amount from line 15 of your Form 4563 . . . . . . . . . . . . . . . . . . . . . . . .	2c
d	Add lines 2a through 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2d
3	Add lines 1 and 2d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	3	fill in the blank 6ce17f0c0028fe5_2
4	Number of qualifying children under age 17 with the required social security number	4
5	Multiply line 4 by $2,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	5	fill in the blank 6ce17f0c0028fe5_3
6	Number of other dependents, including any qualifying children who are not under age 17 or who do not have the required social security number . . . . . . . . . . . . . .	6	fill in the blank 6ce17f0c0028fe5_4
	Caution: Do not include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident alien. Also, do not include anyone you included on line 4.
7	Multiply line 6 by $500 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	7	fill in the blank 6ce17f0c0028fe5_5
8	Add lines 5 and 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	8	fill in the blank 6ce17f0c0028fe5_6
9	Enter the amount shown below for your filing status.
		Married filing jointly$400,000	}
		All other filing statuses$200,000	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	9	fill in the blank 6ce17f0c0028fe5_7
10	Subtract line 9 from line 3.
		If zero or less, enter -0-.	}
		If more than zero and not a multiple of $1,000, enter the next multiple of $1,000. For example, if the result is $425, enter $1,000; if the result is $1,025, enter $2,000, etc.	. . . . . . . . . . . . . .	10	fill in the blank 6ce17f0c0028fe5_8
11	Multiply line 10 by 5% (0.05) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	11
12	Is the amount on line 8 more than the amount on line 11? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	12	fill in the blank 6ce17f0c0028fe5_9
	No. STOP. You cannot take the child tax credit, credit for other dependents, or additional child tax credit. Skip Parts II-A and II-B. Enter -0- on lines 14 and 27. Yes. Subtract line 11 from line 8. Enter the result.
13	Enter the amount from Credit Limit Worksheet A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	13	fill in the blank 6ce17f0c0028fe5_10
14	Enter the smaller of line 12 or line 13. This is your child tax credit and credit for other dependents . . .	14	fill in the blank 6ce17f0c0028fe5_11
	Enter this amount on Form 1040, 1040-SR, or 1040-NR, line 19.

If the amount on line 12 is more than the amount on line 14, you may be able to take the additional child tax credit on Form 1040, 1040-SR, or 1040-NR, line 28. Complete your Form 1040, 1040-SR, or 1040-NR through line 27 (also complete Schedule 3, line 11) before completing Part II-A.

BAA For Paperwork Reduction Act Notice, see your tax return instructions.

Schedule 8812 (Form 1040) 2023

Schedule 8812 (Form 1040) (2023)

Daniel and Freida C Butler

111-11-1112

Page 2

Part II-A

Additional Child Tax Credit for All Filers

Caution: If you file Form 2555, you cannot claim the additional child tax credit.
15	Check this box if you do not want to claim the additional child tax credit. Skip Parts II-A and II-B. Enter -0- on line 27 . . . . . . . . . . . .
16	Subtract line 14 from line 12. If zero, stop here; you cannot take the additional child tax credit. Skip Parts II-A and II-B. Enter -0- on line 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16a	fill in the blank 6ce17f0c0028fe5_12
b	Number of qualifying children under 17 with the required social security number: $1,600.
	Enter the result. If zero, stop here; you cannot claim the additional child tax credit. Skip Parts II-A and II-B. Enter -0- on line 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16b
	TIP: The number of children you use for this line is the same as the number of children you used for line 4.
17	Enter the smaller of line 16a or line 16b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	17
18a	Earned income (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	18a
b	Nontaxable combat pay (see instructions). . . . . . . . . . .	18b
19	Is the amount on line 18a more than $2,500?
	No. Leave line 19 blank and enter -0- on line 20. Yes. Subtract $2,500 from the amount on line 18a. Enter the result . . . . . . . . .	19
20	Multiply the amount on line 19 by 15% (0.15) and enter the result . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20
	Next. On line 16b, is the amount $4,800 or more? No. If you are a bona fide resident of Puerto Rico, go to line 21. Otherwise, skip Part II-B and enter the smaller of line 17 or line 20 on line 27. Yes. If line 20 is equal to or more than line 17, skip Part II-B and enter the amount from line 17 on line 27. Otherwise, go to line 21.

Part II-B

Certain Filers Who Have Three or More Qualifying Children and Bona Fide Residents of Puerto Rico

21

Withheld social security, Medicare, and Additional Medicare taxes from Form(s) W-2, boxes 4 and 6. If married filing jointly, include your spouse's amounts with yours. If your employer withheld or you paid Additional Medicare Tax or tier 1 RRTA taxes, or if you are a bona fide resident of Puerto Rico, see instructions . . . . . . . . .

21

22

Enter the total of the amounts from Schedule 1 (Form 1040), line 15; Schedule 2 (Form 1040), line 5; Schedule 2 (Form 1040), line 6; and Schedule 2 (Form 1040), line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22

23

Add lines 21 and 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23

24

1040 and

1040-SR filers:	Enter the total of the amounts from Form 1040 or 1040-SR, line 27, and Schedule 3 (Form 1040), line 11.	}
1040-NR filers:	Enter the amount from Schedule 3 (Form 1040), line 11.

24

25

Subtract line 24 from line 23. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25

26

Enter the larger of line 20 or line 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26

Next, enter the smaller of line 17 or line 26 on line 27.

Part II-C

Additional Child Tax Credit

27

This is your additional child tax credit. Enter this amount on Form 1040, 1040-SR, or 1040-NR, line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27

fill in the blank 6ce17f0c0028fe5_13

Schedule 8812 (Form 1040) 2023

2023 Tax Rate Schedules

Question Content Area

Use the 2023 Tax Rate Schedules to compute the tax. (Note: Because the tax rate schedules are used instead of the tax tables, the amount of tax computed may vary slightly from the amount listed in the tables.)

2023 Tax Rate Schedules
SingleSchedule X	Head of householdSchedule Z
If taxable income is: Over		But not over		The tax is:		of the amount over			If taxable income is: Over		But not over		The tax is:		of the amount over
$ 0		$ 11,000		. . . . . .	10%		$ 0			$ 0		$ 15,700		. . . . . .	10%		$ 0
11,000		44,725		$ 1,100.00	+	12%		11,000			15,700		59,850		$ 1,570.00	+	12%		15,700
44,725		95,375		5,147.00	+	22%		44,725			59,850		95,350		6,868.00	+	22%		59,850
95,375		182,100		16,290.00	+	24%		95,375			95,350		182,100		14,678.00	+	24%		95,350
182,100		231,250		37,104.00	+	32%		182,100			182,100		231,250		35,498.00	+	32%		182,100
231,250		578,125		52,832.00	+	35%		231,250			231,250		578,100		51,226.00	+	35%		231,250
578,125		. . . . . .		174,238.25	+	37%		578,125			578,100		. . . . . .		172,623.50	+	37%		578,100
Married filing jointly or Qualifying widow(er)Schedule Y-1	Married filing separatelySchedule Y-2
If taxable income is: Over		But not over		The tax is:		of the amount over			If taxable income is: Over		But not over		The tax is:		of the amount over
$ 0		$ 22,000		. . . . . .	10%		$ 0			$ 0		$ 11,000		. . . . . .	10%		$ 0
22,000		89,450		$ 2,200.00	+	12%		22,000			11,000		44,725		$ 1,100.00	+	12%		11,000
89,450		190,750		10,294.00	+	22%		89,450			44,725		95,375		5,147.00	+	22%		44,725
190,750		364,200		32,580.00	+	24%		190,750			95,375		182,100		16,290.00	+	24%		95,375
364,200		462,500		74,208.00	+	32%		364,200			182,100		231,250		37,104.00	+	32%		182,100
462,500		693,750		105,664.00	+	35%		462,500			231,250		346,875		52,832.00	+	35%		231,250
693,750		. . . . . .		186,601.50	+	37%		693,750			346,875		. . . . . .		93,300.75	+	37%		346,875