Continuing Case: Tarek$$s Financial Journey

Tarek$$s job is going great, and this past year he decided to work part$-$time so that he could go to school full$-$time for his master$$s degree. Tarek went to a highly ranked school, where tuition and fees were $$15,000$ for the year. He paid for his tuition and fees using a combination of savings, current income, scholarships, employer$-$provided tuition assistance, and student loans. It is the end of the year, and Tarek is filing his tax return. His total income and benefits are as follows:

Wages: $$30,000($as reported on his W$-2).$

Employer$-$provided tuition assistance: $$5,000.$

Student loan proceeds: $$5,000.$

In addition to tuition, Tarek had the following expenditures:

Student loan interest: $$1,000($as reported to Tarek by his lender on Form $1098-$E$).$

Books: $$1,000.$

Rent: $$8,000.$

Federal income taxes withheld: $$4,000($as reported on his W$-2).$

It is now time for Tarek to complete his tax return. Tarek is single and is $26$ years old.

Instructions

$($You may also want to reference IRS Publication $970.)$

What is Tarek$$s filing status and standard deduction amount for the tax year $(2022)?$

Which of the following income items, and what amount of each, are reported on Tarek$$s Form $1040$ tax return?

Wages.

Employer$-$provided tuition assistance.

Scholarship.

Student loan proceeds.

What education tax credits is Tarek eligible to claim?

For each of the following expenses, indicate whether Tarek can claim a deduction and, if so$,$ the amount of the deduction:

Student loan interest paid.

Books.

Rent.

Calculate Tarek$$s tax liability for the $2023$ tax year. Be sure to account for federal income taxes withheld.