Comprehensive Problem $5-2$A

Bea Krump $($birthdate $3/27/1987)$ moved from Texas to Florida in January $2022$ after divorcing her spouse in $2021.$ She and her daughter, Dee Krump $($birthdate $5/30/2012,$ Social Security number $121-44-6666)$ live at $654$ Ocean Way, Gulfport, FL $33707.$ Bea provides all of Dee$$s support. Bea can claim a child tax credit for Dee. Bea$$s Social Security number is $466-78-6700$ and she is single.

Bea owns and operates a shrimping business called Bea Krump$$s Shrimp. She uses a rented boat to shrimp and has a home office located in their home. The principal business code is $114110.$ Bea$$s bookkeeper provided the following income statement from the shrimping business:

Revenues $$43,000$

Shrimp boat rental $16,000$

Payroll $6,000$

Payroll taxes $480$

Bait and tackle $3,300$

Boat fuel $2,400$

Shrimping permit $800$

Miscellaneous supplies $900$

Health insurance premiums $($for Bea and Dee$)3,700$

Insurance $800$

Bea sells her entire catch at the end of each day and thus has no inventory. She uses the cash method of accounting and has no depreciation. Bea uses her home office exclusively for conducting business. The office is $160$ square feet in her $2,000$ square foot home. Other than the interest and taxes reported below, her only other cost is utilities of $$1,200.$ Assume no depreciation. Bea$$s health insurance is a high$-$deductible plan.

Bea also receives $$600$ per month in alimony from her ex$-$spouse in accordance with their $2021$ divorce decree.

In order to move herself and Dee, Bea spent $$800$ moving her household goods $($trailer rental$),$ $$200$ on meals and $$300$ on lodging while traveling between Texas and Florida. The drive was $1,005$ miles.

After moving to Gulfport, Bea sent Dee to a local private school for the remainder of $5$th grade. Bea used $$4,000$ from Dee$$s Section $529$ plan to pay for private school tuition as reported on the Form $1099-$Q $($see separate tab$).$ Dee had always attended public schools in Texas.

During $2022,$ Bea paid the following amounts $($all of which can be substantiated$)$:

Home mortgage interest $(1098$ not shown$)$ $$8,820$

Auto loan interest $2,300$

Property taxes on personal residence $5,040$

Out$-$of$-$pocket doctor bills $2,788$

Income tax preparation fee $600$

Job$-$hunting expenses $925$

Contribution to HSA $3,300$

Cash donations to church $$4,000$

Bea paid for the out$-$of$-$pocket doctor bills with a distribution from her HSA account. See Form $1099-$SA $($see separate tab$).$

After the divorce, Bea had to purchase a car for herself and all the furnishings for her home. She kept her receipts and had total sales taxes of $$3,881,$ which exceeds the sales tax estimate from the IRS tables.

Required:

Complete Bea$$s federal tax return for $2022.$ Use Form $1040,$ Schedule $1,$ Schedule $2,$ Schedule A$,$ Schedule C$,$ Schedule SE$,$ Form $8829,$ Form $8889$ and Form $8995$ to complete this tax return. Although the taxpayer is eligible for the Child or Other Dependent Tax Credit and Schedule $8812$ is normally completed, we are giving you the amount to be entered directly on Form $1040.$

Bea had health coverage for the entire year and does not want to make a contribution to the presidential election campaign.

Make realistic assumptions about any missing data.

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter $"0".$

If required round any dollar amount to the nearest dollar.

Given this context, what should line $30$ on the schedule C be$?$