$-$ Prepare $2024$ Forms $1040$ and $8949$

$-$ Prepare $2024$ Schedules $1,$ A$,$ B$,$ C and D

$-$ Prepare the $2024$ Qualified Dividends and Capital Gain Tax Worksheet

$-$ A supplement page $($Word$/$Excel$)$ or textbox must be included showing your complete computation of ordinary income tax, as reported on the QDCGTW line $22.$

Read and utilize, page $4,$ additional instructions & hints!Steve and Nancy Harrington are married and have six children. They file their tax returns jointly. Steve is a high school science teacher and head basketball coach and Nancy is a self$-$employed investigative journalist. Steve participates in his employer$$s cafeteria plan for benefits. They had the following cash flows during $2024$:

Cash Receipts:

Steve$$s Salary reported on Form W$-2,$ box $175,000$

Interest Income from Indiana State Bank on savings account $200$

Interest Income from Ameriprise investment account $($not a retirement account$)1,600$

Interest Income from City of Hawkins, IN bond $2,500$

Gift from friend, Enzo $50,000$

Qualified Dividend Income from Kellogg Company $1,500$

Qualified Dividend Income from Coca$-$Cola Co $600$

Qualified Dividend Income from Adidas $750$

Nonqualified Dividend Income from Nestle Corporation $450$

Face value life insurance proceeds on death of Nancy$$s father $300,000$

Flow$-$through Income from Enterprise Product Partners $5,600$

Value of Nancy$$s inheritance from her father$$s estate $3,500,000$

Proceeds from asset sales$*($see next page$)$

Cash Payments:

Federal Income Tax Withholding from W$-22,000$

State Income Tax Withholding from W$-22,200$

Class materials Steve purchased, unreimbursed by school district $500$

Student loan interest paid for Nancy$$s loans $2,700$

IRA contributions $($$$7,000$ each$)14,000$

Cash Payments, continued

Qualified medical expenses paid out$-$of$-$pocket $8,200$

Interest on Steve$$s car loan $3,200$

Property taxes on automobiles $($not used in Nancy$$s business$)2,400$

State sales taxes paid $($per IRS tables$)3,300$

State of IN income taxes paid $($on $2023$ return in April $2024)600$

Real estate taxes on principle home $12,800$

Charitable contributions $($cash contributions to public charities$)15,000$

Mortgage interest on principle home $($outstanding balance of mortgage $12/31/23$ was $$375,000$ and reported on Form $1098)11,400$

Company provided Benefits $($paid for by Steve$$s employer$)$:

Health insurance premiums, family coverage $26,000$

Vision and Dental insurance, family coverage $2,000$

Contributions to retirement plan for Steve $8,000$

The Harringtons had the following asset sales during $2024$:

$-$ On December $20$th$,$ Steve sold $500$ shares of Kellogg Company stock for $$25/$share$.$ He had originally bought those shares on February $5,2024,$ for $$10/$share$.$

$-$ On November $20$th$,$ Steve sold $50$ shares of BMW AG stock for $$32/$share$.$ He bought those shares on March $11,2011,$ for $$9/$share$.$

$-$ On November $20$th$,$ they sold $100$ shares of American Tower Corporation stock for $$180/$share$.$ They bought those shares on March $5,2024,$ for $$300/$share$.$

$-$ On December $15$th$,$ Nancy sold $1$ share of Berkshire$-$A that she inherited from her father$$s estate, which closed on October $15,2024.$ She received $$708,800$ of proceeds. Nancy$$s dad paid $$11,000$ for the share in $1983.$ On the date of her father$$s death, January $11,2024,$ its fair market value was $$611,000.$

$-$ On December $15$th$,$ Nancy sold a piece of land that she inherited from her father$$s estate, which closed on October $15,2024.$ She received $$29,000$ of proceeds. Her dad paid $$5,000$ for that land in $1990$ and on the date of her father$$s death, January $11,2024,$ its fair market value was $$21,000.$

$-$ In addition, they have a $$23,300$ long$-$term capital loss carryover from the prior year.

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Nancy runs her business as a Sole Proprietorship on a cash basis. She has been in business for $25$ years. She did not need to file $1099$s for $2024.$ The business name is Nancy Drew Enterprises; EIN is $01-7654321.$ She materially participates in her business. Cash receipts and payments $($completely business, unless otherwise noted$)$ as follows:

Cash Receipts:

Gross receipts $420,000$

Cash Payments:

Wages $($for staff$)90,000$

Payroll Taxes $($for above wages$)4,040$

Office Supplies $4,600$

Internet & Telephone $1,800$

Legal & Accounting $($professional$)$ Fees $($$$600$ for tax return preparation of Sch C; $$900$ for remainder of $1040$; legal fees $$1,600)3,100$

Meals $($while traveling and$/$or discussing business with clients$)7,600$

Advertising $1,600$

Business liability insurance $2,500$

Additional information regarding Nancy$$s business:

Miles: $24,400$ business miles and a total of $36,000$ miles. The non$-$business miles were personal in nature. Nancy uses the standard mileage rate. The vehicle is a $2022$ BMW $3-$series sports wagon, put in service $11/6/21.$ The vehicle is available for family use. They own $3$ other vehicles. Nancy uses an app on her iP