Fill Out Form 1040, Schedule A, Schedule 1

Case Study - Individual Income Tax Due: March 21 st at 12:30pm Instructions Calculate the Lang's 2022 federal income tax using 2022 Form 1040, Sehedule A, Sehedule 1. and Schedule 3. Fill out the forms as completely as possible. Include all deductions and credits available to the taxpayer. Please also show your work for any and all caleulations incloding: tax, SE tax, business income, and all available credits. John and Jocelyn Lang are marricd and would like to file a 2022 joint tax return. They would like a refund of their taxes if available. They have provided you with the following information: John Lang, SS H 123-45-6789, age 42 Jocelyn Lang, SSA 987-65-432I, age 40 1000 Spring Hollow Drive, Milwaukee, WI 55555 John and Jocelyn have a 7-year old daughter Samantha (SSA 111-33-5555), a 20-year old son Sean (SSA 222-44-6666) who is a full-time student, and a 26-year old daughter, Sally (SS:t 333 55-7777), who is a full-time student. Sally's gross income for the year was $5,000. Sally provided $3,000 of her own support, and John and Jocelyn provided $5,000 of support. The Langs reported the following income during the tax year 2022 : a) John has provided you his W2 from his Web designing job. b) Jocelyn has her own scrapbooking business in her home called "It's All Scrap To Me". In 2022 she had sales of $15,000 and associated expenses of $3,115. Also, one customer gave her free advertising (worth $500 ) in exchange for a scrapbook for his wife. Jocelyn qualifies for the 20% deduction for Qualified Business Income (don't forget SE tax on 1040 line 23 , the 1/ SE tax deduction on Schedule I line 15, and also to deduct 1 . SE tax when calculating QBI on 10+10 line 13 c) ). d) The Langs received $2,000 in interest income from their money market account and $500 in interest income from their State of Idaho bonds. e) The Langs sold 1,000 shares of stock for S10 a share. They purchased the stock two years ago for $9.20 a share. f) John was hit and injured by a drunk driver while crossing a street at a crosswalk. He was unable to work for a month. He received $6,000 from his disability insurance. Web-Attack paid the premiums for John, but they included the amount of the premiums as compensation to John on his year-end W2. g) The drunk driver who hit John was required to pay his $2,000 medical costs and $1,500 for the emotional trauma he suffered from the accident. h) The Langs received a $200 refund of their state income taxes from 2021. The Lang's itemized deductions were well over the standard deduction amount last year. The Langs reported making the following payments for tax year 2022: i) State income tax withholding from W2 j) Federal income tax withholding from W2 k) Alimony payments to John's former wife of $10,000 (divorced in 2014) 1) Child support payments of $4,100. m) Tuition and fees for Sean of $12,000 n) Tuition and fees for Sally of $8,000 (Assume the American Opportunity Credit is the most beneficial, and nonrefundable is Schedule 3 line 3, refundable is reported on 1040 line 29). o) $3,600 to Kid Care day care center for Samantha's care while John and Jocelyn worked (line 2 of Schedule 3). p) $12,200 of real property taxes. q) $13,000 interest on their home mortgage r) $6,000 cash charitable contributions to qualified charities. s) Donation of used furniture to Goodwill. The furniture had a thrift store value of $400 and originally cost $2,000 t) John paid $600 to a CPA to have his taxes prepared last year. u) Don't forget the child tax credit and credit for other dependents (1040 line 19). Case Study - Individual Income Tax Due: March 21 st at 12:30pm Instructions Calculate the Lang's 2022 federal income tax using 2022 Form 1040, Sehedule A, Sehedule 1. and Schedule 3. Fill out the forms as completely as possible. Include all deductions and credits available to the taxpayer. Please also show your work for any and all caleulations incloding: tax, SE tax, business income, and all available credits. John and Jocelyn Lang are marricd and would like to file a 2022 joint tax return. They would like a refund of their taxes if available. They have provided you with the following information: John Lang, SS H 123-45-6789, age 42 Jocelyn Lang, SSA 987-65-432I, age 40 1000 Spring Hollow Drive, Milwaukee, WI 55555 John and Jocelyn have a 7-year old daughter Samantha (SSA 111-33-5555), a 20-year old son Sean (SSA 222-44-6666) who is a full-time student, and a 26-year old daughter, Sally (SS:t 333 55-7777), who is a full-time student. Sally's gross income for the year was $5,000. Sally provided $3,000 of her own support, and John and Jocelyn provided $5,000 of support. The Langs reported the following income during the tax year 2022 : a) John has provided you his W2 from his Web designing job. b) Jocelyn has her own scrapbooking business in her home called "It's All Scrap To Me". In 2022 she had sales of $15,000 and associated expenses of $3,115. Also, one customer gave her free advertising (worth $500 ) in exchange for a scrapbook for his wife. Jocelyn qualifies for the 20% deduction for Qualified Business Income (don't forget SE tax on 1040 line 23 , the 1/ SE tax deduction on Schedule I line 15, and also to deduct 1 . SE tax when calculating QBI on 10+10 line 13 c) ). d) The Langs received $2,000 in interest income from their money market account and $500 in interest income from their State of Idaho bonds. e) The Langs sold 1,000 shares of stock for S10 a share. They purchased the stock two years ago for $9.20 a share. f) John was hit and injured by a drunk driver while crossing a street at a crosswalk. He was unable to work for a month. He received $6,000 from his disability insurance. Web-Attack paid the premiums for John, but they included the amount of the premiums as compensation to John on his year-end W2. g) The drunk driver who hit John was required to pay his $2,000 medical costs and $1,500 for the emotional trauma he suffered from the accident. h) The Langs received a $200 refund of their state income taxes from 2021. The Lang's itemized deductions were well over the standard deduction amount last year. The Langs reported making the following payments for tax year 2022: i) State income tax withholding from W2 j) Federal income tax withholding from W2 k) Alimony payments to John's former wife of $10,000 (divorced in 2014) 1) Child support payments of $4,100. m) Tuition and fees for Sean of $12,000 n) Tuition and fees for Sally of $8,000 (Assume the American Opportunity Credit is the most beneficial, and nonrefundable is Schedule 3 line 3, refundable is reported on 1040 line 29). o) $3,600 to Kid Care day care center for Samantha's care while John and Jocelyn worked (line 2 of Schedule 3). p) $12,200 of real property taxes. q) $13,000 interest on their home mortgage r) $6,000 cash charitable contributions to qualified charities. s) Donation of used furniture to Goodwill. The furniture had a thrift store value of $400 and originally cost $2,000 t) John paid $600 to a CPA to have his taxes prepared last year. u) Don't forget the child tax credit and credit for other dependents (1040 line 19)