For the purpose of this assignment is to prepare a tax return using $2022$ forms. Scenario:

John and Sandy Ferguson got married $20$ years ago and have a daughter, Samantha. John retired from his previous employer last

year. He received retirement benefits on Form $1099-$R$.$ During $2022,$ John started his own business as a web designer and earned

revenue of $$140,000$ from various clients. He had expenses associated with his business $($see detail below$).$ Sandy worked part$-$time

as a receptionist for a law firm $($refer to Form $W-2$ for detailed information on her wages and with holding$).$ They received qualified

dividends, interest income, tax$-$exempt interest, and sold investments. Refer to the client source documentation regarding the

various Form $1099$s for interest, dividends, and capital transactions along with retirement distributions and mortgage interest

payments.

General Taxpayer Information:

The Fergusons live at $3300$ W$.$ Camelback Lane, Las Vegas, NM $87701.$

For their home phone number, enter $602\mathrm{.}639\mathrm{.}2222$

Indicate "not applicable" for the taxpayer social security numbers for John and Sandy. John's birthday is $7/16/78$ and Sandy's

birthday is $10/6/1977.$ Samantha's social security number is $678-99-1234.$ Samantha was born on February $5,2009.$

Enter John's occupation as Entrepreneur and Sandy's as Receptionist.

If there is an overpayment, the Fergusons would like it applied to next year.

The Fergusons Reported Making the Following Payments During the Year:Federal estimated tax payments of $$6,250$ each on $\frac{4}{15}\frac{?}{22},\frac{6}{15}\frac{?}{22},\frac{9}{15}\frac{?}{22},$ and $1/15/23.$

State estimated tax payments of $$4,400($$$1,100$ each on the same dates as the federal estimated payments$).$ Hint: For Schedule

A$,$ only the amount paid during $2022$ will be reported as a current year deduction. Assume no estimated state tax payments for

$2021$ were made on $1/15/22.$

Mortgage interest $($see Form $1098).$ The acquisition debt on their home was originally $$700,000.$ They paid $$4,560$ of real estate

taxes on their principal residence. They did not have any home equity lines of credit outstanding during $2022.$

Sandy paid and was reimbursed $$800$ for employee business expenses. She was required to provide documentation for her

expenses to her employer.

The investment expenses reported on Form $1099-$DIV is $100\%$ investment interest expense.

Credit card interest of $$2,245$ was paid during the year.

Cash$/$Check of $$10,000$ was contributed to various qualified public charities.

Used furniture was donated to Goodwill with a fair market value of $$400$ and an original cost of $$2,000.$ Tip: The furniture

qualifies as $50\%$ property.

Health insurance of $$12,000$ was paid. Since Sandy only works part$-$time, she does not qualify for health insurance through her

employer. They had no other medical expenses during the year.John's Web Business Incurred the Following Expenses During the Year:

Computer $$3,000,$ placed in service on February $1,2022$

Software $$1,000,$ placed in service on February $12,2022$

Business meals consumed in restaurants $$700$

Entertainment $($basketball games with clients$)$ $$1,500$

Office supplies $$220$

Advertising $$3,120$

Legal and professional services, start$-$up fees $$5,000,$ incurred in January

other Information and Tips:

Enter the $1099-$B transactions on the input labeled "Dispositions $($Sch$.$ D$)."$

Try not to use the override boxes in Proconnect, as this may result in an incorrect calculation or flow of information from one

form to the next.

Use the "direct input" screen to report the computer equipment and software for John's web designer business. Indicate the

portion applicable for Sec. $179$ so that the correct amounts flow to both Schedule C and Form $4562.$