- Attorney's fees of $500 associated with unsuccessfully contesting the parking ticket. - Contribution of $250 to the campaign of a candidate for governor. Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $1,808. Calculate Roberta's net tax payable or refund due for 2022. Use the appropriate forms and schedules. Suggested software: ProConnect Tax. 57. John and Mary Jane Diaz are married, filing jointly. Their address is 204 Shoe Lane, Blacksburg, VA 24061. John is age 35, and Mary Jane is age 30 . They are expecting their first child in early 2024. John's salary in 2023 was $125,000, from which $22,800 of Federal income tax and $5,700 of state income tax were withheld. Mary Jane made $62,000 and had $5,600 of Federal income tax and $3,100 of state income tax withheld. The appropriate amounts of FICA tax and Medicare tax were withheld for John and for Mary Jane. John's Social Security number is 111-11-1111, and Mary Jane's Social Security number is 123-45-6789. Communications Critical Thinking Decision Making Planning Tax Computation Problem Both John and Mary Jane are offered medical insurance by their employers with 80% of the premiums being paid by the employers. Mary Jane declines coverage by her employer. The premium paid by John's employer for the family plan he receives is $21,350. Mary Jane received medical benefits of $7,300 under the plan. John was not ill during 2023. Mary Jane paid noncovered medical expenses of $1,300. John makes child support payments of $15,000 for his son, Rod, who lives with Jill, John's former spouse, except for two months in the summer when he visits John and Mary Jane. At the time of the Part 1-Tax Computation Calculate John and Mary Jane's tax (or refund) due for 2023. Part 2-Tax Planning Assume that the Diazes come to you for advice in December 2023. John has learned that he will receive a $40,000 bonus. He wants to know if he should take it in December 2023 or in January 2024. Mary Jane will quit work on December 31 to stay home with the baby. Their itemized deductions will decrease by $3,100 because Mary Jane will not have state income taxes withheld. Mary Jane will not receive the employee award in 2024. She expects the medical benefits received to be $9,000. The Diazes expect all of their other income items to remain the same in 2024 . Write a letter to John and Mary Jane that contains your advice, and prepare a memo for the tax files. Tax Return Problems 56. Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 62701. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for two Tax Forms Problem years. She has a son, Jason, who is 16, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta has never owned or used a digital asset. ProConnect"' Tax She does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta, an advertising executive, earned a salary from ABC Advertising of $136,000 in 2022 . Her employer withheld $16,000 in Federal income tax and $4,400 in state income tax. Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $8,500 for Jason's support during 2022. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2022, she has decided not to do so. Roberta provides all of June's support. Roberta's mother died on January 7, 2022. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother's life insurance policy, Roberta received insurance proceeds of $300,000. Her mother's cost basis for the life insurance policy was $120,000. Roberta's favorite aunt gave her $15,000 for her birthday in October. On November 8, 2022, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2017. Walt's cost basis for the stock was $26,000. On December 1, 2022, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2 , divorce, John worked for a Fortune 500 company and received a salary of $225,000. As a result of corporate downsizing, he lost his job. Mary Jane's father lived with them until his death in November. His only sources of income were salary of $3,800, unemployment compensation benefits of $3,500, and Social Security benefits of $4,100. Of this amount, he deposited $6,000 in a savings account. The remainder of his support of $11,000, which included funeral expenses of $4,500, was provided by John and Mary Jane. Other income received by the Diazes was as follows: Interest on certificates of deposit $3,500 Share of S corporation taxable income (distributions from the S corporation 4,500 to Mary Jane were $1,100; assume no wage limitation for qualified business income deduction) Award received by Mary Jane from employer for an outstanding suggestion 4,000 for cutting costs John has always wanted to operate his own business. In October 2023, he incurred expenses of $15,000 in investigating the establishment of a retail computer franchise. With the birth of their child expected next year, however, he decides to forgo self-employment for at least a couple of years. John and Mary Jane made charitable contributions of $8,700 during the year and paid an additional $1,800 in state income taxes in 2023 upon filing their 2022 state income tax return. Their deductible home mortgage interest was $9,800, and their property taxes came to $4,800. They paid sales taxes of $2,000, for which they have receipts. They paid a ticket of $150 that Mary Jane received for running a red light (detected by a red light camera). Part 1-Tax Computation Calculate John and Mary Jane's tax (or refund) due for 2023. 2018 , for $8,000. An examination of Roberta's records reveals that she received the following: - Interest income of $2,500 from First Savings Bank. - Groceries valued at $750 from Kroger Groceries for being the 100,000 th customer. - Qualified dividend income of $1,800 from Amber. - Interest income of $3,750 on City of Springfield school bonds. - Alimony of $16,000 from Wayne; divorce finalized in May 2020. - Distribution of $4,800 from ST Partnership (Employer Identification Number: 46-4567893). Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W-2 wage limitation does not. From her checkbook records, she determines that she made the following payments during 2022: - Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained). - Payment of $5,000 to ECM Hospital for the medical expenses of a friend from work. - Mortgage interest on her residence of $7,800 to Peoples Bank. - Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. - $800 for landscaping expenses for residence. - Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000. - Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance nolirv reimhursed $1500 of her medical exnenses