Required: For tax year 2022, complete (and attach in the following order): Form 1040, Schedule 1 (Form 1040), Schedule 2 (Form 1040), Form SE, Schedule A (Form 1040), Schedule C (Form 1040), Form 4562, Schedule D (Form 1040), Form 8949, and Form 8995. Do not complete Forms 8959 or 8960 and ignore any possible tax credits or penalties as we have not covered those. You can google these forms or find them on IRS.gov. Depending on when you take the course, the 2022 forms may not be available. You may substitute other year's forms (for example, you may use the 2021 forms). Even if you use the forms from different years, you should apply the 2022 tax law ot the problem (the rules we have been learning in class). You should show any work on a supplemental sheet including one showing your calculations for depreciation, gain/loss, and tax liability, etc. This will allow you to receive partial credit. This is to be turned in on paper.

Joe and Stacy Hill are married and file a joint income tax return. Their address is 390 Swingline Road, Columbus, OH 43201. Joe's Social Security number is 123-45-6789, and Stacy's is 987-65-4321. They have no children. Stacy, however, was married previously. Joe's date of birth is 02/24/1976 and Stacy's is 07/09/1978. Joe is a construction worker, and Stacy is self-employed at a successful retail/sports memorabilia establishment (Buckeye Sales), where she materially participates. They report all their income and expenses on the cash method and are calendar year taxpayers.

For 2022, they report the following items of income and expense: Joe's salary $88,000 Property tax on their personal residence 5,800 State income tax 4,000 Mortgage interest paid on residence 11,000 Qualified medical expenses 22,000 Federal income tax withheld on Joe's salary 13,200 Income tax preparation fee for the prior year's income tax return paid this year 1,300 (($700) is allocated to preparation of Schedule C) Alimony paid to Stacy's ex-husband 12,000 (Divorce was in 2015) Gift from Stacy's mother 8,000 Municipal bond interest 1,200

Capital Gains and Losses: Stacy and Joe sold 100 shares of PDQ Corp. common stock on October 8, 2022, for $280,000. They acquired the stock on December 15, 2019, for $200,000. They also sold 75 shares of JSB Corp. common stock on June 18, 2022, for $200,000. Stacy & Joe acquired this stock on September 18, 2013, for $300,000.

The following is exclusive to Stacy's business: Buckeye Sales is located at 5325 Lane Ave, Columbus, OH 43201. It is engaged in the sale of college apparel with an employer identification number (EIN) of 75-2010008. It is on the cash basis. The company began business on January 1, 2014. Other information follows. You may assume that any expense of the business in an ordinary, necessary, and reasonable expense. It values inventory at cost.

Estimated Tax Payments: The business deposited estimated federal income tax payments as follows:

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Employee Wages Mary Travis $ 50,000 Sam Baker 22,000 Lilly Limb 18,500 $ 90,500 Employee Wages Mary Travis $ 50,000 Sam Baker 22,000 Lilly Limb 18,500 $ 90,500