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Chapter $3$

Preparing an individual's tax form

Adam Burke graduated from college in $2023$ and began work as a systems analyst in July of that year. He is preparing to file his income tax return for $2023$ and has collected the following financial information for calendar year $2023.$ A blank Form $1040$ and Schedule $1$ may be obtained at

www$.$IRS.gov.

Scholarship that paid tuition

Scholarship, room, and board

Salary

Interest income

$$5,650$

$1,950$

$78,000$

$205$

$2,800$

$2,300$

Potentially deductible itemized expenses

Income taxes withheld

A$-2$

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

a$.$ Prepare Adam's tax return, using a $$13,850$ standard deduction and the tax rates given in Exhibit $3\mathrm{.}3.$ Round your answer to the nearest whole number.

$ $$

b$.$ Prepare Adam's tax return using the data in part a$,$ along with the following information. Round your answer to the nearest whole number.

IRA contribution

$$6,500$

Qualified cash dividends received

$400$

Capital gains tax rate $(\%)$

$15$

$ $$

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