a lawyer, has followed the transaction during $2022$:

$($Amount in $$)$

Fees earned $141,250\mathrm{.}00$

Expenses for $2022$:

Payroll expenses $3,100\mathrm{.}00$

Repair and maintenance expenses $5,100\mathrm{.}00$

Insurance expenses $8,000\mathrm{.}00$

Rental expenses $8,650\mathrm{.}00$

Utility expenses $3,900\mathrm{.}00$

Advertising expenses $16,500\mathrm{.}00$

Professional fee expenses $51,500\mathrm{.}00$

During $2022,$ Scott, $34,$ paid $$20,400$ in estimated payments and $$7,150$ for social security.

His wife, $31,$ earned $$31,500$ and $$4,950$ in income tax withheld.

Paid $$11,750$ in mortgage interest.

In $2022$ they opened an IRA account for $$5,500$ each.

They had medical expenses of $$12,300.$

Collect information: Review the financial data provided for Scott Miller, a $34-$year$-$old attorney, and his $31-$year$-$old wife for the year $2022.$ Take note of the various transactions, fees earned, and expenses incurred.

Form $1040$ Personal Information: Begin by entering personal information for Scott and his wife, including their ages, in the appropriate sections of Form $1040.$

Income Section $($Form $1040)$:

Enter Scott's fees as income on Form $1040.$

Include income from your wife's work and income tax withheld.

Report any other source of income.

Expense Section $($Annex C$)$: List and categorize business expenses, including payroll, repair and maintenance, insurance, rent, utilities, advertising, and professional fees.

Subtract total expenses from total income to determine the net profit or loss of Scott's law practice.

Personal Finance Section $($Form $1040)$:

Include Scott's estimated tax payments and Social Security payments.

Report income tax and your wife's income withheld.

Include the mortgage interest paid by Scott.

Schedule A $$ Itemized Deductions:

Record the medical expenses incurred by Scott and his wife.

Include mortgage interest paid.

IRA contributions:

Consider the IRA contributions made by both Scott and his wife.

Check again: Make sure all figures are accurate and calculations are in line with the latest IRS guidance.

Complete the Forms: Complete Form $1040,$ Schedule C for business income and expenses, and Schedule A for itemized deductions.