Richard McCarthy $($born $2/14/1969$; Social Security number $100-10-9090)$ and Christine McCarthy $($born $6/1/1971$; Social Security number $101-21-3434)$ have a $19-$year$-$old son Jack, $($born $10/2/2004$; Social Security number $555-55-1212),$ who is a full$-$time student at the University of Key West. The McCarthys also have a $12-$year$-$old daughter Justine, $($born $12/09/2011$; Social Security number $444-23-1212),$ who lives with them. The McCarthys can claim a $$2,000$ child tax credit for Justine and a $$500$ other dependent credit for Jack. Richard is the CEO at a paper company. His $2023$ Form W$-2($see separate tab$)$Christine is an optometrist and operates her own practice $($The Eyes of March$)$ in town as a sole proprietor. The shop address is $1030$ Morgan Highway, Clarks Summit, PA $18411$ and the business code is $621320.$ Christine keeps her books on the cash basis and her bookkeeper provided the following information:Gross sales$$290,000$Returns$7,300$Inventory:Beginning inventory$$25,000$Purchases$122,000$Ending inventory$28,000$Rent$41,000$Insurance$11,500$Professional fees$3,300$Payroll$36,000$Payroll taxes$2,900$Utilities$4,000$Office expenses$2,245$Depreciation$5,000$Christine paid her rent in $2023$ month$-$to$-$month, but paid $$24,000$ in December $2023$ for a $12-$month lease on her office for all of $2024.$ One of Christines customers is a large state prison that purchases special eye glasses for the inmates that meet prison safety standards. Because the order is large, Christine received a $$20,000$ advance payment in December $2023$ for glasses she delivered in January $2024.$ The rent and advance payment are included in her financial figures above.The McCarthys have a nanny$/$housekeeper whom they paid $$14,000$ during $2023.$ They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemployment tax of $$380$ in $2023.$Christine received a $2023$ Form $1099-$INT from the National Bank of Scranton that listed interest income of $$23,500.$ Note that McCarthys reasonably allocate $$751$ to state income tax expense for purposes of the net investment income tax. Christines uncle that lives in Scotland dies in $2023$ and left her a checking account at the Royal Bank of Glasgow with a balance of $18,000$ or about US$$21,170.$ The account did not earn any interest. Christine reported the account on the FinCEN website. Richard received a Form $1098-$E $($presented below$)$ reporting the student loan interest he paid. CORRECTED $($if checked$)$RECIPIENT$\text{'}$S$/$LENDER$\text{'}$S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone numberSallie Mae Loan Servicing Center$12061$ Bluemont Way, V$3419$Reston, VA $20190$ OMB No$.1545-15762023$Form $1098-$EStudentLoan InterestStatementRECIPIENT'S TIN$12-4454123$BORROWER'S TIN$100-10-90901$$Student loan interest received by lender$2,700\mathrm{.}00$Copy BFor BorrowerThis is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for student loan interest.BORROWER'S nameRichard McCarthyStreet address $($including apt. no$.)32$ Sleepy Hollow RoadCity or town, state or province, country, and ZIP or foreign postal codeClarks Summit, PA $18411$Account number $($see instructions$)2$If checked, box $1$ does not include loan origination fees and$/$or capitalized interest for loans made before September $1,2004...$ Form $1098-$E$($keep for your records$)$www$.$irs.gov$/$Form$1098$EDepartment of the Treasury $-$ Internal Revenue ServiceThe McCarthys received a Form $1099-$G from Pennsylvania that reported a $$477$ state income tax refund from $2022.$ The McCarthys filed a Schedule A in $2022$ and had $$14,223$ of state income tax expense that was limited to a $$10,000$ deduction.The McCarthys paid the following in $2023$:Home mortgage interest reported on Form $1098$ on mortgage of less than $$750,000$$$15,600$Property taxes$5,767$Estimated state income tax payments$2,500$Estimated Federal income tax payments$4,700$Charitable contributions $($all cash$)7,800$Required:Complete the McCarthys' federal tax return for $2023.$ Use Form $1040,$ Schedule $1,$ Schedule $2,$ Schedule A$,$ Schedule B$,$ Schedule C$,$ Schedule H$,$ Schedule SE$,$ Form $8995,$ Form $8959,$ and Form $8960$ to complete this tax return. Although the taxpayer is eligible for the Child or Other Dependent Tax Credit and Schedule $8812$ is normally completed, we are giving you the amount to be entered directly on Form $1040.$Ignore any alternative minimum tax. Do not complete Form $4952,$ which is used for depreciation.Make realistic assumptions about any missing data.The taxpayers had health insurance coverage for the entire year and do not want to contribute to the presidential election campaign.Enter all amounts as positive numbers.If an amount box does not require an entry or the answer is zero, enter $"0".$If required, round any dollar amount to the nearest dollar.