Prepare a $2023$ individual tax return using the following fact pattern. Compute net tax payable or refund

due for Alice and Bruce Byrd for $2023.$

Alice J$.$ and Bruce M$.$ Byrd are married taxpayers who file a joint return. Their social security numbers

are $123-45-6789$ and $111-11-1122,$ respectively. Alice$$s birthday is September $21,1972$ and Bruce$$s is

June $27,1974.$ They live at $473$ Revere Avenue, Newtown, NY $10187.$ Alice is the office manager for

Ames Dental Clinic, $433$ Broad Street. Newtown, NY $10187($employer identification number $98-$

$7654321).$ Bruce is the manager of a Super Burgers fast$-$food outlet owned and operated by Plymouth

Corporation, $1247$ Central Avenue, Hauppauge, NY $11788($employer identification number $11-1111111).$

He is also a self $-$employed attorney and has a part time practice.

The following information is shown on their Wage and Tax Statements $($Form W$-2)$ for $2023.$

Line Description Alice Bruce

$1.$ Wages, tips and other compensation $$52,600$ $$61,500$

$2.$ Federal income tax withheld $4,1805,990$

$3.$ Social Security wages $52,60061,500$

$4.$ Social Security tax withheld $3,2613,813$

$5.$ Medicare wages and tips $52,60061,500$

$6.$ Medicare tax withheld $763892$

$15.$ State NY NY

$16.$ State wages, tips, etc. $52,60061,500$

$17.$ State income tax withheld $2,2802,990$

The following information is for Bruce$$s law practice:

Income $$65,000$

Utilities... $$3,000$

Rent $$18,000$

Supplies.... $$5,000$

Salaries $$10,000$

Disbursements... $$3,000$

The Byrds support their two children, Cynthia $($born January $15,2008,$ Social Security number $123-45-$

$6788)$ and John $($born February $7,2009,$ Social Security number $123-45-6786)..$

During $2023,$ the Byrds furnished $60\%$ of the total support of Bruce$$s widower father, Sam Byrd $($born

March $6,1946,$ Social Security number $123-45-6787).$ Sam lived alone and covered the rest of his support

with his social security benefits. Sam died in November and Bruce, the beneficiary of a policy on Sam$$s

life, received life insurance proceeds of $$600,000$ on December $28$th$.$

The Byrds had the following expenses relating to their personal residence during $2023$:

Property taxes $$10,720$

Qualified interest on home mortgage $9,130$

Repairs to roof $4,780$

Utilities $3,810$

Homeowner$$s insurance $2,290$

The following facts relate to medical expenses for $2023$:

Medical insurance premiums $$4,380$

Doctor bill for Sam incurred in $2021$ and not paid until $20227,760$

Operation for Sam $7,310$

Prescription medicines for Sam $860$

Hospital expenses for Sam $2,850$

Reimbursement from insurance company, received in $20223,000$

The medical expenses for Sam represent most of the $60\%$ Bruce contributed toward his father$$s support.

They also engaged in a few stock transactions. They sold $100$ shares of Green Company Stock for

$$10,000$ on February $15,2023.$ Their cost basis is $$2,000.$ They had purchased the stock on March $15,$

$2013.$ They sold $50$ shares of Orange Company Stock for $$8,000$ on March $3,2023.$ They had purchased

the stock on December $20,2017$ for $$12,000.$

Other relevant information follows:

$$ When they filed their $2022$ state return in $2023,$ the Byrds paid additional state income taxes of

$$950.$

$$ During $2023,$ Alice and Bruce attended a dinner dance sponsored by the Ames Police Disability

Association $($a qualified charitable organization$).$ The Byrds paid $$400$ for the tickets. The cost

of comparable entertainment would normally be $$160.$

$$ The Byrds contributed $$4,800$ to Ames Presbyterian Church and gave used clothing$($cost of

$$1,100$ and fair market value of $$450)$ to the Salvation Army. All donations are supported by

receipts and are in very good condition.

$$ In $2023,$ the Byrds received interest income of $$1,895,$ which was reported on a Form $1099-$INT

from Second National Bank.

$$ Bruce paid $$320$ for an annual subscription to the Journal of Certified Public Accountants.

Instructions:

Prepare a $2023$ Form $1040.$ All corresponding schedules are required$($A$,$ B$,$ C$,$ and D$).$