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anced Scenario 8: Joanne Oak Directions Using the tax software, complete the tax retum, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer

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anced Scenario 8: Joanne Oak Directions Using the tax software, complete the tax retum, including Form 1040 and all appropriate forms, schedules, or worksheets. Answer the questions following the scenario. When entering Social Security numbers (SSNs) or Employer Identification Numbers (EINS), replace the X S as directed, or with any four digits of your choice. Interview Notes - Joanne is a data entry clerk, age 26, and single. - Joanne has investment income and a consolidated broker's statement. - Joanne is self employed dellvering food for Delicious Deliveries on the weekends. She received a Form 1099-NEC and a Form 1099-K. She received additional cash payments of $455. - Joanne uses the cash method of accounting. She uses business code 492000 . - Joanne provided a statement from the food delivery service indicating the fees paid for the year. These fees are considered ordinary and necessary for the food delivery business: - $150 for insulated box rental - $50 for vehicle safety inspection (required by Delicious Deliveries) - $600 for Delicious Deliveries fees - Joanne also kept receipts for the following out-of-pocket expenses: - $100 for tolis - $120 for car washes - $150 for tickets for lllegal parking 15%$150 for snacks and lunches Joanne consumed while working - Joanne's record keeping application shows she has driven a total of 2,500 miles during and between deliveries. 1,200 miles were driven from 1/01/2022 - 6/30/2022, and 1,300 miles were driven from 7/01/202212/31/2022. She also drove 1,500 mites between her home and the first and last delivery of each day. - She placed her only vehicle, an SUV, in service on 3/15/2020. The total mileage on he SUV for tax year 2022 was 11,000 miles. Of that, 7,000 were personal miles. Joanne will take the standard business mileage rato. - Joanne took an early distribution from her IRA in April. She used part of the IRA distribution to pay off her educational expenses: - Joanne is paying off her student loan from 2017. - Joanne is working towards her Masters of Education degree to start a new career as an Associate Professor. She took a few college courses this year at an accredited college. - If Joanne has a refund, she would like it deposited into her checking account

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