Please complete the Form $1040$based on the following information. Please complete the $\backslash (\backslash$underline$\{2023\}\backslash )$ federal income tax return for Joseph and Jessie Butler. If something is unclear to you or required information is missing, please use Blackboard Discussions Forums to obtain guidance.

Joseph and Jessie Butler are married and live in Bridgewater, MA$.$ Joseph is $42$ years old and a design engineer for a manufacturing company. Jessie is $45$ years old and runs a craft business from their home. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. The Butler's have one child Lizzie $($age $20).$ Lizzie attends State University and works for a landscaping business during the summer $-$ she earned $\backslash$$$7,500$ in $2023.$

The Butler's plan to file a joint tax return and provided the following information:

$-$ Joseph's social security number is AAA$-$BB$-$CCCC

$-$ Jessie's social security number is XXX$-$YY$-$ZZZZ

$-$ Lizzie's social security number is ABC$-$DE$-$FGHI

$-$ Mailing address is $23$ Brewster Street, Bridgewater, MA $02325$

Joseph Butler reported the following information relating to his employment during the year:

Employer Gross Wages Federal Income Tax MA State Income Tax Withholding

Design Manufacturing $\backslash (\backslash$quad $\backslash$$ $128,400\backslash )$

$\backslash (\backslash$$ $13,700\backslash )$

Withholding

$\backslash (\backslash$$ $6,400\backslash )$

Joseph's employer withheld all payroll taxes it was required to withhold. The entire Butler family was covered by minimum essential health insurance during each month in $2023.$ This insurance cost was $\backslash (\backslash$$ $15,000\backslash )$ for $2023$ and paid for by Joseph's employer. Joseph injured himself at work and was out of work for three weeks in March $2023.$ Joseph received workman's compensation payments of $\backslash (\backslash$$ $4,000\backslash )$ during that period of time.

Jessie Butler uses the cash method to account for her business activities which were as follows in $2023$:

Jessie made the following estimated tax payments in $2023$: $\backslash (\backslash$$ $2,000\backslash )$ for Federal income taxes and $\backslash (\backslash$$ $500\backslash )$ for MA state income taxes. Jessie also received a $\backslash$$$15,000$ gift in $2023$ from her rich uncle who wanted to help her grow her business. Jessie Butler uses the cash method to account for her business activities which were as follows in $2023$:

Jessie made the following estimated tax payments in $2023$: $\backslash (\backslash$$ $2,000\backslash )$ for Federal income taxes and $\backslash (\backslash$$ $500\backslash )$ for MA state income taxes. Jessie also received a $\backslash (\backslash$$ $15,000\backslash )$ gift in $2023$ from her rich uncle who wanted to help her grow her business.

Joseph and Jessie also received the following investment income during the year:

Interest income from Certificate of Deposit $\backslash (\backslash$$ $1,650\backslash )$

Interest income from U$.$S$.$ Treasury Bond $\backslash (\backslash$$ $716\backslash )$

Interest income from Municipal Bond $\backslash (\backslash$$ $920\backslash )$

The Butler's did not own, control or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year.

In May of $2023,$ the Butler's received a Federal income tax refund of $\backslash$$$1,200$ and a Massachusetts state income tax refund of $\backslash (\backslash$$ $400\backslash )$ because they had overpaid both their Federal and MA state individual income taxes in $2022.$ On their $2022$ Federal income tax return, the Butler's itemized their deductions and received full tax benefit $($deduction$)$ for the state tax income taxes paid in $2022.$

Joseph enjoys sports and wages bets on the local sports teams. Joseph had gambling winnings of $\backslash$$$1,800$ during $2023$ and gambling losses of $\backslash (\backslash$$ $3,200\backslash ).$

Lizzie won an iPad valued at $\backslash (\backslash$$ $800\backslash )$ and a scholarship for $\backslash (\backslash$$ $2,500\backslash )$ towards tuition by competing in her University's $2023$ technology contest.

The Butler's paid the following expenses during the year:

Mortgage interest on principal residence

$\backslash (\backslash$$ $14,500\backslash )$

Real property taxes on residence

$\backslash (\backslash$$ $6,200\backslash )$

Vehicle property tax based upon value

$\backslash (\backslash$$ $310\backslash )$

State sales tax

Unreimbursed medical expenses

$\backslash (\backslash$$ $1,690\backslash )$

Unreimbursed employee business expenses for

Joseph $\backslash (\backslash$quad $\backslash$$ $2,400\backslash )$

Interest on credit cards

$\backslash (\backslash$$ $300\backslash )$

Interest on loans to pay Lizzie's tuition

$\backslash$$$3,200$

College tuition paid for Lizzie

$\backslash (\backslash$$ $6,780\backslash )$

College room $\backslash$& board paid for Lizzie

$\backslash (\backslash$$ $12,620\backslash )$

Cash contribution to American Red Cross

$\backslash (\backslash$$ $1,725\backslash )$ Joseph and Jessie also received the following investment income during the year:

Interest income from Certificate of Deposit $\backslash (\backslash$quad $\backslash$$ $1,650\backslash )$

Interest income from U$.$S$.$ Treasury Bond $\backslash (\backslash$$ $716\backslash )$

Interest income from Municipal Bond $\backslash$$$920$

The Butler's did not own, control or manage any foreign bank accounts, nor were they grantors or beneficiaries of a foreign trust during the tax year.

In May of $2023,$ the Butler's received a Federal income tax refund of $\backslash$$$1,200$ and a Massachusetts state income tax refund of $\backslash (\backslash$$ $400\backslash )$ because they had overpaid both their Federal and MA state individual income taxes in $2022.$ On their $2022$ Federal income tax return, the Butler's itemized their deductions and received full tax benefit $($deduction$)$ for the state tax income taxes paid in $2022.$

Joseph enjoys sports and wages bets on the local sports teams. Joseph had gambling winnings of $\backslash$$$1,800$ during $2023$ and gambling losses of $\backslash (\backslash$$ $3,200\backslash ).$

Lizzie won an iPad valued at $\backslash (\backslash$$ $800\backslash )$ and a scholarship for $\backslash$$$2,500$ towards tuition by competing in her University's $2023$ technology contest.

The Butler's paid the following expenses during the year:

Mortgage interest on