Question
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
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 Dees support. Bea can claim a child tax credit for Dee. Beas Social Security number is 466-78-6700 and she is single.
Bea owns and operates a shrimping business called Bea Krumps Shrimp. She uses a rented boat to shrimp and has a home office located in their home. The principal business code is 114110. Beas bookkeeper provided the following income statement from the shrimping business:
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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. Beas 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 5th grade. Bea used $4,000 from Dees 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):
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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 Beas 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.
If possible could you please attach all the forms required
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