$2023$ Federal Tax Law Test for Circular $230$ Professionals $-$ Scenario $1$: Herb and Alice Freeman $-$ Question $1$ of $3.$

Interview Notes

Herb and Alice are married and file a joint return. Herb is $74$ years old and Alice turns $72$ in February $2023.$ Neither are blind.

Both Herb and Alice are retired. Herb works part time as a greeter.

Alice is confused about the Required Minimum Distribution rules, and wants to know when she should take her first distribution from her IRA.

Herb earned $$12,000$ in wages and has fully taxable pension income of $$4,800.$ The couple also received Social Security benefits of $$46,000.$ They received no other income in $2023.$

Herb and Alice's grandson, Stuart, lives with them while he attends the local university. Stuart is $20,$ a full$-$time student, and is claimed as a dependent by his parents.

Herb, Alice and Stuart are U$.$S$.$ citizens, lived in the United States all year, and have valid Social Security numbers.

Herb and Alice's standard deduction is $$27,700.$

b$.$ False