Assignment Overview

Complete a joint $2023$ Federal Income Tax return for the Richardsons, including Form $1040,$ Schedule $1,$ Schedule A $($even if you decide they will claim the standard deduction$),$ Schedule B$,$ and page $1$ of Schedule D$.$ All tax forms are located in the Table of Contents $$ Tax Forms area of D$2$L$.$

Susan and Jake Richardson are married and live at $245$ Insert your last name Trail, Tucson, AZ $85702.$ After a short period between jobs, Jake is now the manager of a small bank. Susan is employed part$-$time as a physical therapist. Jake is $37$ years old and Susan is $34.$

The Richardson household includes the following individuals, for whom they provide more than half of their support.

$\backslash$table$[[$Name$,$SSN$,$Birthdate$],[$Jake Richardson,$123-45-6786,\frac{02}{05}\frac{?}{1986}$

During $2023,$ the Richardsons had the following items which may be important for their tax return:

Salaries and withholdings $($see $W-2$ forms at the end of this file$)$

First Bank

PT Clinic, Inc.

Interest income $($see $1099-$INT forms at the end of this file$)$

City of Tucson bonds

General Electric Corporation bonds

First Bank certificate of deposit

Annual gifts from parents

Life insurance proceeds $($uncle who passed away in $2023)$

Cash inheritance from uncle

Annuity payments $($total for the year$),$ details below

Settlement amount from City Tours, details below

Blackjack winnings, details below

$26,000$

$18,000$

$15,000$

$12,000$

$100,000$

$1,900$

$1,200$

Talent show prize, details below

$\backslash$table$[[$Annual gifts from parents,$26,000],[$Life insurance proceeds $($uncle who passed away in $2023),18,000],[$Cash inheritance from uncle,$15,000],[$Annuity payments $($total for the year$),$ details below,$12,000],[$Settlement amount from City Tours, details below,$100,000],[$Blackjack winnings, details below,$1,900],[$Talent show prize, details below,$1,200],[$Unemployment compensation $($Jake$,$ see $1099-$Gform at$,6,000],[$end of file$),]]$

Sale of Target stock $($see $1099-$B form at the end of this file$)$: Susan sold $100$ shares of Target stock on August $1,2023$ for $$87$ per share. They had purchased the stock on December $12,2022$ for $$68$ per share.

Sale of Starbucks stock $($see $1099-$B form at the end of this file$)$: Susan also sold $50$ shares of Starbucks stock on June $6,2023.$ Her total proceeds from the sale were $$2,900$ and she purchased the stock on January $27,2004$ for $$3,050.$

Jake invested in an annuity that pays $$1,000$ a month for $20$ years. His original investment in the annuity is $$165,000.$

In July, while walking downtown, Susan was accidentally hit by a City Tour bus. The owner of the bus, City Tours, paid her $$100,000$ in settlement of the personal physical injuries she sustained.

Jake and Susan took a trip to Las Vegas in February of $2023$ and won $$1,900$ gambling at the blackjack tables. Ladv luck was on their side!

Jake and Susan took a trip to Las Vegas in February of $2023$ and won $$1,900$ gambling at the blackjack tables. Lady luck was on their side!

Jake participated in a charity talent show for the local Humane Society and won a cash prize of $$1,200.$ He had the prize winnings deposited into his daughter Maggie's savings account.

For her ten years of service at PT Clinic, Susan received a commemorative pen worth $$200.$

Jake and Susan borrowed $$35,000$ from Wells Fargo bank on a personal loan to buy a car.

The Richardsons had the following expenditures in $2023$:

Medical expenses: Jake had shoulder surgery and Maggie broke her leg $-$ expenses total $$25,000,$ of which insurance reimbursed $$10,100.$

$\backslash$table$[[$Property taxes on personal residence,$5,600],[$Ad valorem personal property tax on car,$120],[$State of Arizona income taxes $($see withholdings on W$-2$ forms$),6,300],[$Funeral expenses for uncle,$7,200],[$Interest on home mortgage, debt at purchase was $$550,000,],[,($see Form $1098$ at the end of this file$),15,000],[$Interest on personal loan to buy car,$1,050],[$Donation to United Way on credit card,$2,400]]$

$\backslash$table$[[$Donation to University of Arizona Foundation,$3,250],[$Donation to the election campaign of a senator$,400],[$Lottery losses,$2,010],[$Speeding ticket,$200]]$

The Richardsons keep track of their gambling $($Jake plays blackjack, Susan buys lottery tickets$)$ and can substantiate their winnings and losses.