Directions

Prepare the following forms for this case:Form 1040, Schedule 1, Schedule 3, Schedule A, Form 8863, and Form 8863 Credit Limit Worksheet. If a line of a form or schedule requests a different form/schedule that isn't required for this assignment, please do not complete it. Please refer to www.irs.gov for any documents needed for review.

Clients John and Bertha Main, aged 52, are married and live in New York City, NY. As the tax accountant for the Mains, they have requested that you complete their 2022 federal income tax return, including Form 1040, Schedule 1, Schedule 3, Schedule A, and Form 8863.

W2 information:

Employers Name: Lit Corporation

Employees Name:John Main

Box 1: Wages$100,000

Box 2: Federal Income Tax Withheld$14,600

Box 17: State Income Tax Withheld$5,100

Employers Name: Marlo University

Employees Name:Bertha Main

Box 1: Wages$75,000

Box 2: Federal Income Tax Withheld$8,000

Box 17: State Income Tax Withheld$4,000

The Mains have four children, none of whom are married or disabled, that they provided more than 50% support for in 2022:

Child 1: Benji, age 26 years old, made 6500 in gross income,Full-time graduate student at MIT; lived in an apartment in Cambridge, MA, the entire year.

Child 2: Lee, age, 20 years old,Biological daughter, gross income is $5100, Full-time undergraduate student at Friend University; lived in college dorms in Washington, DC, during the school year and with John and Bertha during the summer.

Child 3:Ellsa, age 16 years old,Biological daughter,gross income is $4600,Lived at home with John and Bertha the entire year.

Child #4: Brandon, age 10 years old, adopted son, gross income is $0,Lived at home with John and Bertha the entire year.

Institution: Mastery University

Students Name: Benji Main

Line 1: Payments received for qualified tuition and related expenses; $18,000

Full-time Graduate Student

Students Name: Ellsa Main

Line 1: Payments received for qualified tuition and related expenses; $8,000

Full-time Undergraduate Student

The Mains also received the following other income during the year:

$1800 from Interest from Line Bank

$2500 fromInterest income from the New York City, NY bond

$4000 fromQualified dividends from investment in Lit Corporation

$2800 fromUnemployment compensation due to John losing his former university job

$ 10,000 fromWorkers compensation related to an incident that John had on the job

$12000 fromGift received from Johns mother

Receipt of payment by Bertha as a result of a lawsuit for damages sustained in a car accident:

• $4000 in Medical Expenses
• $12500 in compensatory damages
• $15000 in punitive damages

Expense Information:

Unreimbursed Dental for $7500

Unreimbursed medical for $10000

Unreimbursed prescriptions for $2500

Interest paid on borrowed money to purchase New York City, NY bonds for $400

NY state income tax payment made on 3/15/2022 related to 2021 liability for $1350

Mortgage interest on principal residence for $14800

Personal property taxes for $2100

Contribution to traditional IRA for $6000

John had to pay $14400 in Alimony to his ex-wife, whom he divorced in 1998

Please prepare the forms and state what line the solutions should be placed on the forms.