Scenario: Year ending December 31, 2023

The taxpayers are Bill Beau Bagin (social security number 333-33-3330), born January

17, 1973, and his wife, Sara Lee Bagin (social security number 444-44-4440), born April

12, 1973. Both have good eyesight, and live with their two children, Ned and Megan, at

789 N. Code Drive, Chicago, Illinois 60699, (312) 679-9999.

Mr. Bagin wants to contribute $3 of his income tax to the Presidential Election

Campaign Fund. Mrs. Bagin elects not to contribute.

The Bagins' son, Ned, is a 17-year-old high school student, born June 15, 2005. Their

daughter, Megan, is twelve years old, born August 9, 2010 and a junior high school

student. Neither child had any income. Ned's social security number is 300-11-0001 and

Megan's social security number is 300-33-0003.

Wages and Expenses Generally

During 2023, Mrs. Bagin was employed as an elementary school teacher, employed at

Elementary School 0205, Main Street, Chicago, IL 60699. The school's employer ID# is

99-6665432.

Her Form W-2 for 2023 reports the following:

Box 1. Wages, tips and other compensation $61,985

Box 2. Federal income tax withheld $ 5,026

Box 4. Social security tax withheld $ 3,847

Box 6. Medicare tax withheld $ 899

Box 17. State income tax $ 2,790

Mr. Bagin works part-time at Joker Grocery, West Maple, Chicago, IL 60689.

His Form W-2 for 2023 reports the following:

Box 1. Wages, tips and other compensation $15,000

Box 2. Federal income tax withheld $ 1,200

Box 4. Social security tax withheld $ 858

Box 6. Medicare tax withheld $ 201

Box 17. State income tax $ 600

Neither Mr. nor Mrs. Bagin is covered by their employer's retirement plan.

Mrs. Bagin made a $1,500 contribution to a traditional IRA and a $2,000 contribution to

a Roth IRA in 2023. Mr. Bagin decided against making a contribution to a traditional

IRA.

The Bagins received a $400 state income tax refund. They used the standard deduction

of $25,900 on their 2022 federal income tax return. The Bagins also received a $550

federal income tax refund.

The Bagins made federal estimated tax payments of $2,100 for 2023.

The Bagins incurred the following medical expenses during 2023:

prescription drugs $1,000

doctor bills $6,724

hospital bills $4,256

transportation $ 100

eyeglasses $ 500

The Bagins own their residence. They paid 2023 real estate taxes $4,300 on July 1,

2023.

Mr. and Mrs. Bagin paid the total of $9,250 home mortgage interest on the residence.

Their mortgage company is Any Bank on South Street in Chicago, IL 60689. Their

account # is 11000011.

They paid the following personal interest in 2023:

$1,625 to finance Mrs. Bagin's car, and

$ 400 in credit card interest.

The Bagins gave $1,750 in cash to various recognized charities; no individual gift was

$250 or more; all charities sent an acknowledgment of the contribution. They had no

carryover charitable contributions.

Mrs. Bagin bought $345 of supplies for her classroom.

Dividends and Interest

During 2023, the Bagins received $875 in interest from the Heartland National Bank,

EID 99-9990001 and $150 as nominees for Julia Major (Mrs. Bagin's mother from the

Third National Savings and Loan, EID 55-0001234.

They received $550 in interest from tax-exempt bonds issued by the State of Illinois.

The Bagin's received the following qualified dividends: $745 from E&Z Tax Preparation,

Inc., and $425 from Secure Money Market Fund.

Sale of Stock and Other Investments

During 2023, the Bagins sold the following capital assets:

(1) On February 2, 100 shares of Haba, Inc. were sold for $1,100. They had been

purchased on November 18, 2009 for $3,500.

(2) On November 5, 300 shares of Perco, Inc. were sold for $12,000. They had

been purchased on January 5, 2008 for $7,000.

(3) On December 4, 100 shares of Squire, Inc. were sold for $12,500. They had

been purchased on January 4, 1998 for $9,000.

3,500-1,100=2,400

12,000-7,000=5,000

12,500-9,000=3,500

Total= 10,900