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Don and Linda Hill are married, and they plan to file one tax return (i.e., they will file a joint federal income tax return) for

Don and Linda Hill are married, and they plan to file one tax return (i.e., they will file a joint federal income tax return) for 2023. Don and Linda both retired from their jobs during 2017. The Hills will likely cover their living expenses from a few different sources during 2023. They anticipate that Don will collect $11,200 of Social Security benefits and Linda will collect $7,500 of Social Security benefits. The Hills also expect to receive $15,300 of distributions from a pension plan from Dons former employer, $780 of tax-exempt interest from municipal bonds, $530 of taxable interest, and $12,100 of dividends. Linda inherited a painting that her mother had bought for $380 in 1983. The painting was worth $2,490 when her mother died in October of 2022 and $2,620 when the executor distributed the painting to Linda from the estate in January of 2023. Linda sold the painting at auction for $2,560 during February of 2023. In January of 2023, Don received stock as a gift from his father when the stock was worth $6,320. His father purchased the stock in 2018 for $6,480. Don sold the stock for $6,570 in late February of 2023. Don would like to provide some consulting services as an independent contractor in order to earn some money for an extended vacation. He believes that he could earn $32 per hour and thinks that he could bill his clients for 450 hours of work before the end of 2023. Don believes he would have $2,700 of unreimbursed deductible business expenses as a consultant, and he has determined that the amount of his Social Security benefits would not change if he provided those services. Don believes that he would need to net $9,000 from the services, after paying the business expenses and any additional taxes, to make the performance of the services worthwhile. Required: Assume the Hills pay income tax at a rate of 12% of their combined adjusted gross incomes. Explain what amount of money, if any, Don would have from his consulting services after paying any increase in their combined income and/or other taxes as a result of those services.

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