Based on the 2022 tax rules

During 2022, Richard and Greta Van Fleet, who are married and have 2 dependent children (ages 16 (in high school and 19 (a sophomore in college, full-time)), have the following information:

Total salaries $112,000 Bank account interest 6,000 State of Arkansas bond interest 4,000 Gift from Gretas dad 16,000 Life insurance proceeds (Richards mom died) 150,000 Sale of Qualified Small Business Stock (adj. basis =$500,000) 1,250,000 Dividend income (BMW-based in Germany) 7,000 Long-term capital gains 10,000 Short-term capital losses (6,000) ABC limited partnership interest (passive)* 31,000 XYZ limited partnership interest (passive)* (34,000) * (these limited partnerships are not real estate related)

They also incurred the following expenses: Qualified medical expenses $10,000 State & local income taxes paid 6,500 Property taxes on home 4,500 Property taxes on vehicles 750 Qualified residence interest (original amount borrowed = $400,000) 9,000 Cash charitable contributions ($5,500 - church; $2,500 St. Jude Childrens Hospital) 8,000 Tuition paid for qualified educational expenses for older child who attends Big State University 4,500

They have the following federal tax payments: Income tax withheld $8,400 Also, they want to make the maximum contribution possible to Roth IRAs for both of them. Both of them are active participants in qualified plans at work. Richard is 52, and Greta is 48

answer questions regarding gross (total) income, AGI, taxable income, federal tax liability, and additional tax due to the IRS or refund due back to the taxpayers. You should include any relevant credits that we covered to which the taxpayers are entitled based on the facts.