Project $1$ Assignment $-$ Instruction Set

Bill and Mary Clients are married and wish to file jointly. Bill has been promoted to Vice President for Com$-$Pac, a local packaging manufacturer. Mary is a self$-$employed attorney.

Prepare an income tax return $($with appropriate schedules$)$ for $2022,$ the following tax forms. You will have to submit the return to your manager for review. Use the following guidelines and information:

$-$ The taxpayers do not wish to contribute to the Presidential Elections Campaign Fund.

$-$ The taxpayers do not own any foreign bank accounts or other investments.

$-$ The taxpayers have the necessary substantiation $($e$.$g$.,$ records, receipts$)$ to support all transactions reported in their tax return.

$-$ Make necessary assumptions for information not given in the problem but needed to complete the return.

$1.$ The Clients live at $426$ East Oak, Toledo, OH $43617.$ They have two children. Sandy is a sophomore in college. Andrew is still in K$-12$ school. Sandy lives away in a college dorm most of the year. She is a full$-$time student.

$2.$ Relevant Social Security numbers are as follows:

$3.$ Bill's W$-2$ is attached. $($Please know that the IRS does not have a pdf with fields. That is why it looks weird.$)$

$4.$ Interest, Dividend, Stock and Bond Transactions are reflected on the attached $1099$s$.$

$5.$ The $1099-$G shows the refund of $2021$ state income taxes paid. In $2021$ the Clients had a total of $\backslash (\backslash$$ $30,000\backslash )$ itemized deductions, including $\backslash$$$9,600$ in state and local taxes paid. You enter in $2021$ information under Worksheets $->$ Form $1040$ State Refund Worksheet. $($I had to enter $9600$ on line $1.$b$,2.$a$,$ and $2.$b$.$ Then the $30$K on line $4.$d$.$ Don't forget to check itemized up at the top.$)$

$6.$ Besides the items previously noted, the Clients had the following items for the current year:

Cash gifts from Mary's parents $\backslash (\backslash$$ $14000\backslash )$

Medical Insurance $($paid with after$-$tax dollars$)$

Medical expenses not covered by insurance $\backslash$$ $5400$

Real estate taxes on home. $\backslash$$ $6300$

Real estate taxes on investment acres in Texas. $\backslash$$ $5695$

State and local sales taxes $\backslash$$ $3750$

Interest on home mortgage $.($see Form $1098)$

Contribution to church $($all cash$)\backslash (\backslash$$ $4500\backslash )$

Goodwill $($Carbondale branch$)\backslash (\backslash$$ $600\backslash )$

Non$-$cash items donated to Goodwill were originally purchased on March $15,2020.$ The $\backslash (\backslash$$ $600\backslash )$ is the fairvalue of items today. They were originally purchased for $\backslash (\backslash$$ $3,000\backslash ).$ The description of items is "clothing and household items." Also, this related to the $\backslash (50\backslash \%\backslash )$ charity limit and method used to determine is "thrift shop value." The address of the goodwill location is $2600$ W Sylvania Ave STE $107,$ Toledo, OH$,43613.$ The donation was $8/15/22.$