Tax Return Problem

Required:

$$ Use the following information to complete Johnelle and Latoya Henry$$s $2022$ federal income tax return by using the irs fillable forms. If any information is missing, use reasonable assumptions to fill in the gaps.

$$ The forms, schedules, and instructions can be found at the IRS website $($www$.$irs.gov$).$ The instructions can be helpful in completing the forms.

Facts:

$1.$ Johnelle Henry is employed as a human resources manager for Toys Unlimited, Inc., and Latoya is a financial planner for her mother$$s company, Long$-$term Investments, Inc., a full$-$service wealth$-$planning firm. They provide the following information:

$$ They both want to contribute to the presidential election campaign.

$$ They live at $9876$ Old Waverly, Charleston, South Carolina $29401.$

$$ Johnelle$$s birthday is $7/17/1968$ and his Social Security number is $555-12-6789.$

$$ Latoya$$s birthday is $9/11/1970$ and her Social Security number is $987-65-4321.$

$$ Johnelle and Latoya do not have any foreign bank accounts or trusts.

$2.$ Johnelle received a Form W$-2$ from Toys Unlimited, Inc. that contained the following information:

$$ Line $1$ Wages, tips, other compensation $$45,000$

$$ Line $2$ Federal income tax withheld $7,500$

$$ Line $3$ Social Security wages $45,000$

$$ Line $4$ Social Security tax withheld $2,790$

$$ Line $5$ Medicare wages and tips $45,000$

$$ Line $6$ Medicare tax withheld $653$

$$ Line $17$ State income tax $2,200$

$3.$ Latoya received a Form W$-2$ from Long$-$term Investments, Inc., that contained the following information:

$$ Line $1$ Wages, tips, other compensation $$85,000$

$$ Line $2$ Federal income tax withheld $12,500$

$$ Line $3$ Social Security wages $85,000$

$$ Line $4$ Social Security tax withheld $5,270$

$$ Line $5$ Medicare wages and tips $85,000$

$$ Line $6$ Medicare tax withheld $1,233$

$$ Line $17$ State income tax $4,200$

$4.$ Johnelle and Latoya incurred the following medical expenses for the year:

$$ Transportation to Chicago for Johnelle$$s cancer treatment in July $2,000$ miles

$$ Unreimbursed hospital charges for Johnelle $$6,500$

$$ Unreimbursed prescription drug charges for Johnelle and Latoya $1,750$

$$ Unreimbursed physician charges for Johnelle and Latoya $2,200$

$$ Unreimbursed prescription glasses for Latoya $150$

$$ Laser hair removal treatment for Latoya $($so that she will no longer need to shave her legs$)2,000$

$5.$ Johnelle and Latoya paid $$12,000$ of interest payments on their primary residence $($acquisition debt of $$225,000).$ They also paid $$1,750$ of interest expense on Latoya$$s car loan and $$500$ of interest on their Visa card.

$6.$ Johnelle and Latoya paid $$4,000$ of real estate taxes on their home and $$1,000$ of real estate tax on a vacant lot they purchased with the hope of building their dream home in the future. They also paid $$3,000$ in sales tax on Latoya$$s car and other purchases and $$1,000$ of ad valorem personal property tax on their cars.

$7.$ Johnelle and Latoya made the following contributions this year:

$$ American Red Cross $ $200$

$$ United Way $150$

$$ St$.$ Joseph$$s Catholic Church $8,000$

$$ Food for the family of Hannah Barbara $($a neighbor who suffered a tragic car accident this past year$)225$

$$ Stock transfer to the University of South Carolina $($originally purchased for $$1,000$ in January $2007)$ on July $1,2022750$

$8.$ Johnelle won $$5,000$ in the state lottery. He has been playing the lottery for years, spending $$10$ in lottery tickets every week $($$$520$ in total$)$ and is careful that he saves the old tickets to keep track of the numbers he plays.

$9.$ Johnelle and Latoya did not buy, sell, exchange, or otherwise acquire any financial interest in a virtual currency.