Alton Newman, age $67,$ is married and files a joint return with his wife, Clair, age $65.$ Alton and Clair are both retired, and during $2023,$ they received Social Security benefits of $$10,000.$ Both Alton and Clair are covered by Medicare. Alton's Social Security number is $111-11-1119,$ and Clair's is $123-45-6786.$ They reside at $210$ College Drive, Columbia, SC $29201.$

Alton, who retired on January $1,2023,$ receives benefits from a qualified pension plan of $$2,750$ a month for life. His total contributions to the plan $($none of which were deductible$)$ were $$168,250.$ In January $2023,$ he received a bonus of $$2,000$ from his former employer for service performed in $2020$ No Federal or state income taxes were withheld on this bonus by his former employer $($Amalgamated Industries, Inc.; EIN $12-3456789$; $114$ Main Street, Columbia, SC $29201).$ Although Amalgamated Industries, Inc., accrued the bonus in $2022,$ it was not paid until $2023.$

Clair, who retired on December $31,2022$ started receiving benefits of $$1,400$ a month on January $1,2023.$ Her contributions to the qualified pension plan $($none of which were deductible when made$)$ were $$74,100.$

On September $27,2023,$ Alton and Clair received a pro rata $10\%$ stock dividend on $600$ shares of stock they owned. They had bought the stock on March $5,2016,$ for $$20$ a share. On December $16,2023,$ they sold the $60$ dividend shares for $$55$ a share.

On October $10,2023,$ Clair sold the car she had used in commuting to and from work for $$17,000.$ She had paid $$31,000$ for the car in $201.$

On July $14,2015,$ Alton and Clair received a gift of $1,000$ shares of stock from their son, Thomas. Thomas's basis in the stock was $$35$ a share $($fair market value at the date of gift was $$25).$ No gift tax was paid on the transfer. Alton and Clair sold the stock on October $8,2023,$ for $$24$ a share.

On May $1,2023,$ Clair's mother died, and Clair inherited her personal residence. In February $2023,$ her mother had paid the property taxes for $2023$ of $$2,100.$ The residence had a fair market value of $$235,000$ and an adjusted basis to the mother of $$160,000$ on the date of her death. Clair listed the house with a real estate agent, who estimated it was worth $$240,000$ as of December $31,2023.$

Clair received rent income of $$6,000$ on a beach house she inherited three years ago from her uncle Charles. She had rented the property for one week during the July $4$ holiday and one week during the Thanksgiving holiday. Charles's adjusted basis in the beach house was $$150,000,$ and its fair market value on the date of his death was $$240,000.$ Clair and Alton used the beach house for personal purposes for $56$ days during the year. Expenses associated with the house were $$3,700$ for utilities, maintenance, and repairs; $$2,200$ for property taxes; and $$800$ for insurance. There are no mortgages on the property.

Clair and Alton paid estimated Federal income tax of $$2,000$ and had itemized deductions of $$6,800($excluding any itemized deductions associated with the beach house$).$ They did not engage in any digital asset transactions during the year. If they have overpaid their Federal income tax, they want the amount refunded. Both Clair and Alton want $$3$ to go to the Presidential Election Campaign Fund.

Compute their $2023$ Federal income tax payable or refund due and complete their $2023$ tax return using appropriate forms and schedules. Suggested software: