During $2022,$ Gunnar served on a jury for a civil case that was litigated at the county courthouse. As a result of the service, he was paid $$700$ and incurred unreimbursed parking expenses of $$60.$ In conformance with company policy, Gunnar remitted the $$700$ of jury duty fees to BAC.

In addition to the items already noted, the Fergusons had the following receipts in $2022$:

A receipt report. Life insurance proceeds: $50,000.2021$ Iowa state income tax refund: $50.$ Proceeds from garage sale: $2,600.$ Interest income: City of Omaha bonds: $480.$ Citi Bank certificate of deposit: $600.$ Total: $1,080.$

The insurance proceeds were paid to Gunnar as the designated beneficiary of Astrid$$s life insurance policy. At the garage sale, the Fergusons sold personal items $($e$.$g$.,$ camper, furniture, hunting and fishing equipment$)$ that belonged to Gunnar$$s father and mother $($i$.$e$.,$ Astrid$).$ Gunnar and Hannah estimated the items they sold originally cost $$7,100.$ The garage sale proceeds were donated to the Alzheimers Research Association $($EIN $23-7438025)$ in memory of Gunnar$$s father. The Fergusons had an overpayment of tax on their $2021$ Federal income tax return. Instead of receiving a refund, they applied the $$3,000$ overpayment toward their $2022$ income tax liability.

The Fergusons had the following additional expenditures for $2022$:

Dentist bills not covered by insurance $$3,100$

Federal estimated income tax payments $36,000$

Iowa estimated income tax payments $20,000$

Ad valorem property taxes on personal residence $14,100$

Interest on home mortgage reported on Form $10982,600$

Contributions to Philadelphia Church in Council Bluffs $($EIN $42-1301970)23,600$

As part of a program sponsored by their church $($a qualified charity$),$ the Fergusons used the family Suburban to transport senior citizens to religious services for a total of $900$ miles during $2022.$ The Suburban also was used for numerous visits to an orthodontist for both the Fergusons$$ children for a total of $480$ miles. Both the charitable and medical mileage occurred ratably throughout the year.

The Fergusons$$ household includes two dependent children, Eric $($age $15)$ and Olivia $($age $14),$ both of whom are full$-$time students in high school. Relevant Social Security numbers appear below.

Name Social Security Number

Gunnar B$.$ Ferguson $123-45-6575$

Hannah R$.$ Ferguson $123-45-6576$

Astrid E$.$ Ferguson $123-45-6577$

Eric M$.$ Ferguson $123-45-6578$

Olivia A$.$ Ferguson $123-45-6579$

Requirements

Prepare a $2022$ Federal income tax return $($with all appropriate forms and schedules$)$ for the Fergusons, following these guidelines:

Gunnar and Hannah choose to file a joint income tax return.

They do not wish to contribute to the Presidential Election Campaign Fund.

They do not own any foreign bank accounts or other foreign investments.

They had no transactions in digital assets during the tax year.

They prefer to receive a refund of any overpaid taxes.

The taxpayers are preparing their own return $($i$.$e$.,$ no preparer is involved$).$

For the past several years, the Fergusons have itemized their deductions from AGI instead of using the standard deduction. In addition, the Fergusons have deducted state income taxes $($not sales taxes$)$ for the past several years.

The taxpayers have the necessary substantiation $($e$.$g$.,$ records, receipts$)$ to support all transactions reported in their tax return.

Make necessary assumptions for information not given in the problem but needed to complete the return.