Based upon Bill and Susan Minors information below, complete a Form 1040 and Form 540 for Tax Year 2022, using tax preparation software. You will receive 10 points for each correct figure you list on Lines 1a, 2b, 7, 8, 11, 12, 24, 25a, and 34 on Form 1040, and Line 64 on Form 540.

-In 2022, Bill and Susan Minor had W-2 Wages totaling $95,000, Federal Tax Withheld of $12,000, and California State Tax Withheld of $3,500.

-In 2022, Bill and Susan both had health insurance for the entire year through their employers which met the Minimum Essential Coverage requirements under the Affordable Care Act.

-Bill is an auditor at a hotel and Susan is a high school business teacher.

-Bill and Susan will file a Married Filing Joint Tax Return in 2022.

-In 2022, Bill received interest income of $300 from his 1^st Bank of the Third Best Account. He also cashed in a Certificate of Deposit early and the 6^th Federal Savings and Loan Bank assessed a $25 penalty for early withdrawal of savings. Bill received a Form 1099-INT which reported $75 in interest income from 6^th Federal Savings and Loan Bank in 2022.

-In 2022, Susan performed Jury Duty. She was paid $80 for her Jury Duty and turned over the check to her W-2 Employer, Mission Place High School. Susan received her full pay from Mission Place High School while she was on Jury Duty.

-In 2022, Bill and Susan spent $6,900 making repairs on their home. The repairs included work on their garage door, replacement of the kitchen flooring, and refurbishing their electrical breaker box.

-The Minors reported itemized deductions on their Form 1040 Tax Return in 2021 and deducted in full all state income taxes they paid in 2021. They dont know if they can take the Standard Deduction or not in 2022. They want to take the largest deduction they can in 2022, whether that be the Standard Deduction OR the Itemized Deduction.

-In 2022, Susan received a $26,000 cash inheritance from the estate of her great-great-grandmother.

-Susan and Bill are both 50 years old and neither one is blind or disabled.

-Their grown children are Porsche and Carmen. The kids are out of the house and have their own jobs and apartments. Porsche, who made $96,000 in 2022, is a poor money manager and Bill gave her $2,900 in 2022.

-In 2022, Susan sent her mom $1,700 to help her mom buy medication and medical devices. Susan does not and cannot claim her Mom as a Dependency Exemption.

-The Minors took fencing lessons in 2022 that cost $2,600. They said these lessons help them unwind after a busy workday. Susan liked fencing so much she bought a foil, epee, and saber costing $3,200. A day after buying the fencing equipment, a thief broke into Susans fencing locker at the fencing center and stole the foil and saber worth $1,850. Susan filed a police report, had no insurance on the foil and saber, and the property was not recovered.

-In 2022, Susan paid $975 in union dues to the El Camino Real Teachers, Educators, and Mentors Union.

-Bill owed the IRS $4,600 from his 2020 Federal Income Tax Return. He is paying $212 a month on this debt. In 2022, Bill calculated he paid $2,644 in federal income tax and $370 in interest to the IRS.

-Susan helped her friend start a business. The friend plans on paying Susan $4,950 for all the work

she did. This payment will be made in December 2023.

-Susan decided in 2022 to become a self-employed tutor. She taught 2 kids business planning and

was paid $250. Her ONLY business expenses as a self-employed tutor were $50 for business cards and $300 for paper, pencils, and supplies. Susan also tells you she paid Mystic Maria the Worlds 7^th Best and Inexpensive Fortune Teller $550 to predict Susans success. Maria reported that Susan would be wildly successful in her tutoring business and would gross approximately $500 in 2023.

-In 2022, Bill and Susan owned a rental property and calculated Total Rental Real Estate Income on Line 26, Schedule E, of $2,000.

-In 2022, Bill won a $475 cash prize for a contest he entered. Bill said he did NOT get a W-2 or a Form 1099 for the $475 he won.

-Bill stated he contributed $3,000 to his Roth IRA in 2022.

-Bill and Susan are members of their local Elks Lodge, which is a non-profit organization, involved in charitable work, and a Qualifying Charitable Organization. The Minors pay $140 a year for dues and their only activity with the Elks is going to eat Sunday breakfast, attending dances, and buying drinks at the bar.

-The Minors paid $13,000 in Home Mortgage Interest in 2022. They paid a property tax bill of $3,300 in 2022.

-In 2022, Bill drove his personal auto 5,200 miles as a volunteer meal deliverer for Lets Feed All of the Hungry, a Qualifying Charitable Organization. 2,000 miles were driven from Jan 2 to Jun 30 and 3,200 miles were driven Jul 1 to Dec 30.

-In 2022, Bill donated 150 hours of time to Goodwill, a Qualifying Charitable Organization. He figures his time is worth $45 an hour.

-Susan has AB- blood type. When the Red Cross Bloodmobile stops by her work, Susan donated blood. In 2022, she donated 7 pints of blood. The local hospital charges $300 a pint for patients who receive AB- Blood.

-In 2022, Bill incurred $2,800 in gambling losses at Always Lost Wages Casino. In 2022, he won $5,100 in the California Super Big Lotto.

-Bill and Susan calculated they had 6,000 commuting miles to their W-2 jobs in 2022.

-The Minors donated $8,800 to Lets Feed the Hungry Whales and Save the Children Fund in 2022. Bills friend Dante said the fund was is a scam. Bill went on the IRS Website and found that the fund was a Qualifying Charitable Organization.

- In 2022, Susan sold stock she had in The Coffee Grind Company. Susans friend, Alma Cabrera, an Enrolled Agent, and calculated that Susan had a Short-Term Capital Gain of $2,000 from the sale of the stock.

-In 2022, Susan decided to run for the city council. She paid a $455 filing fee and borrowed $18,000 from the local bank to finance her campaign. Susan lost the election by 1 vote.

-In 2022, Bill and Susan paid homeowners association dues of $1,800 on their personal residence.

-In 2022, Bill paid a dental bill of $7,900 for removal of 16 of his bad teeth and the filling of 16 of his other teeth.

In 2022, Bill paid $590 for DMV registration fees for his 2002 Chevy S-10 Pickup Truck and Susans 2007 Yaris. Bill has determined these DMV fees are deductible on a Schedule A.

In 2022, Bill owned 100 shares in Iowa Furniture Corporation (IFC). On September 30, 2022, IFC paid dividends of $4 a share. Bill is enrolled in a Dividend Reinvestment Plan (DRIP) with IFC and when dividends were paid, Bill did not receive a check, instead, his dividends were re-invested and additional shares were purchased for Bill.

In 2022, Susan provided the local police with information that led to the arrest and conviction of a person that damaged cars in her neighborhood. She received a Certificate of Appreciation from the city.

In 2022, Susans sister, who is a well-known, successful, and highly paid entertainer, gave Susan a Tesla Model SKG Automobile with a Fair Market Value of $90,000. Susan uses the car to commute to her job and paid $900 in DMV registration fees that she has determined are deductible on a Schedule A.

In 2022, Bill was ticketed for driving his car without a valid registration, no valid drivers license, and no proof of insurance. He paid a fine of $900, which included court costs of $75

-In 2022, Susan found a small gold and diamond ring near her house. She turned it into the police department and after 60 days, the police gave the property back to Susan since no one claimed it. In November 2022, Susan had the ring appraised and found out the fair market value of this found property was $7,000.

-In 2022, Bill received a set of golf clubs from his brother-in-law Mario. Bill was very happy to receive the clubs and played golf with Mario once a week in 2022. Bill checked with a golf store and was told the clubs he received were worth $950.

-In 2022, Susan paid a researcher $800 to trace her family history. The researcher reported to Susan she may be the rightful owner of a small farm in Germany worth $1,000,000. Susan has made plans to see if she owns the land, she has set aside $2,500 in a savings account for a title and legal search, and she will hire an attorney in December 2023 to determine her ownership rights.