Charla is filing her income tax return for $2023.$ She is single and has no dependents. She will itemize her deductions. Her information is listed below.

Charla's Tax Information

Wages $$115,000$

Dividend income $$400$

Gambling winnings $$4,000$

Rental Income $$7,000$

Investment interest paid $$700$

Interest paid on personal credit card debt $$1,000$

Charitable cash contribution to a hospital $$12,000$

Medical expenses $$2,200$

Insurance compensation received for medical expenses paid $$600$

State income taxes paid $$4,300$

Gift tax paid $$1,100$

Medical expenses of $$400$ charged on a credit card in December $2023$ but not paid until January $2024$

Gambling losses $$10,000$

Insurance premiums paid of $$300$ on Charla's life

Penalty paid to bank on early withdrawal of savings $$50$

Interest income on mortgage loan receivable $$3,000$

Rental expenses $$1,000$

Gross sales on self$-$employment income of $$15,000$

Expenses for self$-$employment business of $$5,000$

Create an Excel spreadsheet in the format of a $1040$ tax return. Start with income and then subtract with any above the line deductions to arrive at gross income. Then choose standard deduction or itemized deductions, which ever is higher. Explain why you choose the standard deduction or itemized deduction in a few sentences at the bottom of your spreadsheet. The final line should be your taxable income. Below is an example. You can add line items missing from the example or subtract any unnecessary items. In the column next to your numbers, you must identify on which tax form each of the line items would be entered.

$\backslash$table$[[$Income:$,$Amount,Form$],[$Wages$,,],[$Dividend income,,$],[$Total income,$3,],[$Deductions:$,,],[$Medical Expenses,,$],[$Total qualifying expense,,$],[$AGI floor,,$],[$Allowable medical expense deduction,,$],[$Taxes paid,,$],[$State income taxes,,$],[$Gift tax,,$],[$Interest paid,,$],[$Investment interest,,$],[$Credit card interest,,$],[$Charitable contributions,,$],[$Total contribution,,$],[$AGI limit$,,],[$Allowable charitable contribution deduction,,$],[$Total itemized deductions,,$],[$Taxable income,,$]]$

Hint: Please remember that there may be limitations or phase outs on some of these items. You must follow the tax rule.