Financial literacy is one of the most important factors determining success in both personal development and business. Ensuring financial stability for yourself and your family depends on whether you manage your financial resources correctly, plan income and expenses, calculate taxes, distribute your own financial resources, or make investments. It is important to start setting financial goals now because everything you do today will affect your financial means in the future. So, the first step to success has already been taken, and you are opening your own business. Do you understand how money works, how much investment needs to be made, what the cash flow will be, when you will get the first profit, and how to pay taxes? In this part of the Portfolio Project, find answers to these questions in order to ensure your financial well-being.

For this portfolio project, you will fill Federal Income Tax Return for a fiscal year, 2022 (12-months period). In this scenario, you are not married and do not have kids. Being employed as a managing director of your limited liability company, you provided 100% on your own and earned $48,000 last year. You have decided not to distribute profits of your company. You sold a car that you had bought 3 years ago and got $500 as a long-term capital loss (Schedule D is not required). Additionally, you received $300 in interest on state bonds and $200 in interest on money market accounts. During the year, you had the following expenses: Medical and dental expenses - $4,200; State and local income taxes - $2,300; State and local real estate taxes - $2,000; Home mortgage interest - $3,800 (you have indicated this amount in Form 1098); Mortgage insurance premiums - $400; Charitable contribution to United Way of America made by check - $200; Federal income tax withheld from Form(s) W-2 - $4,203.

1.) Fill out your tax return for the 2022 tax year. You can access the template here. When completed, save the tax return as a PDF.

2) you will have to define the amount of your deductions. Note that you can only use the deduction (either standard deduction or itemized deductions) that has the highest value.

3) In order to find out how much the Standard Deduction that you are eligible for is, you can short test "How Much Is My Standard Deduction?"

4) Fill out Schedule A (Form 1040) to calculate your Itemized Deductions. When the template is completed, save it as a PDF.

5) Write a brief note on what a person could do to reduce the amount of federal income tax liability.