Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. In addition, the taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. John and Shannon O'Banion, who live at 3222 Pinon Drive, Mesa, CO 81643, file as married filing jointly. John's social security number is 412-34-5670 (date of birth 5/12/1984), and Shannon's is 412-34-5671 (date of birth 11/3/1986). John's W-2 contained the following information: Wages (box 1) Federal W/H Social security wages Social security W/H $ 66,346.74 $ 4,787.23 = $ 66,346.74 = $ 4,113.50 = (box 2) = (box 3) (box 4) Medicare wages (box 5) Medicare W/H (box 6) = $ 66,346.74 $ 962.03 Shannon did not work for the year due to a medical condition but did receive unemployment compensation of $5,328 for the year with federal withholding of $654.68. In the same year, they had the following medical costs: Shannon's prescribed diabetes medication $ 4,250 Shannon's hospital charges Shannon's regular physician visits Shannon's eye doctor Shannon's diabetes blood testing supplies Insurance reimbursements In addition, they had the following other expenses: State income taxes 9,350 835 75 685 1,925 Real estate property taxes Car loan interest Personal property taxes Cash charitable contributions (made ratably throughout the year to their church) Mortgage interest expense Union dues for John $ 4,950 4,170 500 765 2,135 9,970 575 175 Tax preparation fees Required: Prepare a Form 1040 with a Schedule 1 and Schedule A for the O'Banions using any appropriate worksheets. Use the appropriate Tax Tables. Note: List the names of the taxpayers in the order in which they appear in the problem. Round your final answers to the nearest whole dollar amount. Input all the values as positive numbers. Instructions can be found on certain cells within the forms. Schedule 1 of Form 1040. SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040, 1040-SR, or 1040-NR John Part I O'Banion Shannon Additional Income Additional Income and Adjustments to Income Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information. O'Banion 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received b Date of original divorce or separation agreement (see instructions): OMB No. 1545-0074 2022 Attachment Sequence No. 01 Your social security number 412-34-5670 1 2a 3 Business income or (loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 7 Farm income or (loss). Attach Schedule F Unemployment compensation 8 Other income: a Net operating loss b Gambling c Cancellation of debt d Foreign earned income exclusion from Form 2555 e Income from Form 8853 f Income from Form 8889 g Alaska Permanent Fund dividends h Jury duty pay i Prizes and awards j Activity not engaged in for profit income k Stock options 8a 8b 8c 8d 8e 8f 8g 8h 8i 8j 8k I Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property 81 m Olympic and Paralympic medals and USOC prize money (see instructions) 8m n Section 951(a) inclusion (see instructions) 8n Section 951A(a) inclusion (see instructions) 80 3 4 5 6 7 5,328 p Section 461(1) excess business loss adjustment q Taxable distributions from an ABLE account (see instructions) r Scholarship and fellowship grants not reported on Form W-2 s Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d t Pension or annuity from a nonqualifed deferred compensation plan or a nongovernmental section 457 plan u Wages earned while incarcerated z Other income. List type and amount: 8p 8q 8r 8s 8t 8u 9 Total other income. Add lines 8a through 8z 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F 8z 9 10 5,328 Schedule 1 (Form 1040) 2022