Comprehensive Problem 7-1

David and Darlene Jasper have one child, Sam, who is 6 years old (birthdate July 1, 2016). The Jaspers reside at 4639 Honeysuckle Lane, Apt. 1201, Los Angeles, CA 90248. David's Social Security number is 577-11-3311, Darlene's is 477-98-4731, and Sam's is 589-22-1142. David's birthdate is May 29, 1989, and Darlene's birthday is January 31, 1991. David and Darlene's earnings and withholdings for 2022 are:

David:	Earnings from Apple Company (office manager)	$27,100
	Federal income tax withheld	800
	State income tax withheld	1,050
Darlene:	Earnings from Rose Company (perfume tester)	$26,500
	Federal income tax withheld	1,050
	State income tax withheld	1,000

Their other income includes interest from Pine Tree Savings and Loan of $1,000. David made a $500 contribution to his IRA (he does not have a retirement plan at work).

David and Darlene received a letter from Sam's daycare provider (see separate tab).

Required: Complete the Jaspers' federal tax return for 2022. Use Form 1040, Schedule 1, Schedule 3, Schedule A, Form 2441, Schedule 8812, and Form 8880, as needed.

• Make realistic assumptions about any missing data.
• The taxpayers do not want to make a contribution to the presidential election campaign.
• 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 (unless instructed otherwise on the tax form).
• Assume alternative minimum tax is not a factor.

Letter from Kiddiecare, Inc.

Question Content Area

David and Darlene received a letter from Sam's daycare provider (located on a separate tab).

KIDDIECARE INC. 10250 Santa Monica Blvd. Los Angeles, CA 90067 EIN: 13-3345678

January 14, 2023

David and Darlene Jasper 4639 Honeysuckle Lane Unit 1201 Los Angeles, CA 90248

Dear David and Darlene,

Thank you for your patronage of our day care center with your child, Sam Jasper, in 2022. This statement serves as a record of the cost of daycare services we provided during calendar year 2022:

Child	Amount	Dates of Service
Sam Jasper	$3,680.00	1/1/2022 - 08/25/2022

Sincerely,

/s/ Marcia Clarke

Marcia Clarke Director, KiddieCare Inc.