Form 1040, Schedule 1 and Schedule 8812

Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child support-the alimony payments were to terminate if Wanda remarried. In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus, Because the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsult, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained. The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-the employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution. The Deans' household includes the following, for whom they provide more than half of the support: Penny graduated from high school on May 9, 2022, and is undecided about college. During 2022, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on December 20, 2022. For the past few years, Wayne qualified as a dependent of the Deans. Federal income tax withheld is $3,900 (Lance) and $1,600 (Wanda). The proper amount of Social Security and Medicare tax was withheld. Required: Determine the Federal income tax for 2022 for the Deans on a joint return by completing the appropriate forms. Use Form 1040 and Schedule 1 to complete this tax return. They do not own and did not use any digital assets during the year, and they do not want to contribute to the Presidential Election Campaign Fund. If an overpayment results, it is tobe refunded to them. santa re, Nm orsui Forth 1040 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Schedule 1 - Section 951A(a) inclusion (see instructions) p Section 461(1) excess business loss adjustment 4 Taxable distributions from an ABLE account (see instructions) r Scholarship and fellowship grants not reported on Form W-2 s. Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d t Pension or annulty from a nonqualfed deferred compensation plan or a nongovernmental section 457 plan 4 Wages earned while incarcerated. z Other income. Ust type and amount: \begin{tabular}{|c|c|} \hline 8o & \\ \hline 8p & \\ \hline 8q & \\ \hline 8r & \\ \hline & \\ \hline 8s & ( \\ \hline & \\ \hline 8t & \\ \hline 8u & \\ \hline & \\ \hline 8z & \\ \hline \end{tabular} 9 Total other income. Add lines 8a through 8z 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040) 2022 Schedule 1 16 Self-employed SEP, SIMPLE, and qualified plans 17 Self-employed health insurance deduction 18 Penalty on early withdrawal of savings 19a Alimony paid b Recipient's SSN c Date of original divorce or separation agreement (see instructions): 20 IRA deduction 21 Student loan interest deduction 22 Reserved for future use 23 Archer MSA deduction 24 Other adjustments: a Jury duty pay (see instructions) Schedule 1 f Contributions to section 501(C)(18)(D) pension plans g. Contributions by certain chaplains to section 403 (b) plans .... h Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions) I Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations. j Housing deduction from Form 2555 k Excess deductions of section 67 (e) expenses from Schedule K-1(Form 1041) z Other adjustments. List type and amount: 1040-SR, line 10, or Form 1040-NR, line 10a Schedule 1 (Form 1040) 2022 Schedule 8812 Part I Child Tax Credit and Credit for Other Dependents 1 Enter the amount from line 11 of your form 1040, 1040-SR, or 1040-NR 2a Enter income from Puerto Rico that you excluded. b Enter the amounts from lines 45 and 50 of your Form 2555 c Enter the amount from line 15 of your Form 4563 d Add lines 2a through 2c. 3. Add lines 1 and 2d 4 Number of qualifying children under age 17 with the required social security number 5 Multiply line 4 by $2,000 6 Number of other dependents, including any qualifying children who are not under age 17 or who do not have the required social security number Caution: Do not include yourself, your spouse, or anyone who is not a U.S. citizen, U.S. national, or U.S. resident alien. Also, do not include anyone you included on line 4. Schedule 8812 resident alien. Also, do not include anyone you included on line 4. 7 Multiply line 6 by $500 8 Add lines 5 and 7 9 Enter the amount shown below for your filing status. - Married filing jointly $400,000 - All other filing statuses $200,000} 10 Subtract line 9 from line 3. - If zero or less, enter =0-. - If more than zero and not a multiple of $1,000, enter the next multiple of enter $2,000, etc. 11 Multiply line 10 by 5%(0.05) 12 Is the amount on line 8 more than the amount on line 11 ? No. STOP. You cannot take the child tax credit, credit for other dependents, or additional child tax credit. Schedule 8812 12 Is the amount on line 8 more than the amount on line 11 ? No. STOP. You cannot take the child tax credit, credit for other dependents, or additional child tax credit. Skip Parts 11A and 118. Enter -0 - on lines 14 and 27. : Yes. Subtract line 11 from line 8. Enter the result. 13 Enter the amount from the Credit Limit Worksheet A 14 Enter the smaller of line 12 or 13. This is your child tax credit and credit for other dependents Enter this amount on Form 1040, 1040-SR, or 1040-NR, line 19. \begin{tabular}{|l|l|} \hline 12 & \\ \hline & \\ \hline & \\ \hline 13 & \\ \hline 14 & \\ \hline \end{tabular} If the amount on line 12 is more than the amount on line 14, you may be able to take the additional child tax credit on Form 1040, 1040SR, or 1040-NR, line 28. Complete your Form 1040, 1040-5R, or 1040-NR through tine 27 (also complete Schedule 3, line 11) before completing Part II-A. BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 8812 (Form 1040) 2022 Schedule 8812 (Form 1040) (2022) Lance H and Wanda B Dean 111111113 Page 2 Schedule 8812 Schedule 8812 (Form 1040) (2022) Lance H and Wanda B Dean 111111113 Page 2 Part II-A Additional Child Tax Credit for All Filers Caution: If you file Form 2555, you cannot claim the additional child tax credit. 15 Check this box if you do not want to claim the additional child tax credit. Skip Parts II-A and II-B, Enter 0 on line 27 16 Subtract line 14 from line 12. If zero, stop here; you cannot take the additional child tax credit. Skip Parts IIA and II-B. Enter -0 - on line 27. b Number of qualifying chidren under 17 with the required soclal security number: $1,500. Enter the result. If zero, stop here; you cannot claim the additional child tax credit. Skip Parts II-A and II-B. Enter =0 - on tine 27 TIP: The number of children you use for this line is the same as the number of children you used for line 4. 17 Enter the smaller of line 16a or line 16b 18a Earned income (see instructions). b Nontaxable combat pay (see instructions). 18b 19 is the amount on line 18 a more than $2,500 ? 17. No. Leave line 19 blank and enter -0 - on line 20. Schodule 8812 "(Form 1040), line 5; Schedule-2 (form 1040), line b; and Schedu e 2 (form 1040), line 13. 23 Add lines 21 and 22 24. 1040 and 1040-SR filersi Enter the total of the amounts from Form 1040 or 1040 SR, line 27, and Schedule 3 (Form 1040), line 11. 1040-NR filers: Enter the amount from Schedule 3 (Form 1040), line 11. 25 Subtract line 24 from line 23. If zero or less, enter - 0 - 26 Enter the larger of line 20 or line 25. Next, enter the smaller of line 17 or line 26 on line 27. Part II-C Additional Child Tax Credit 27 This is your additional child tax credit. Enter this amount on Form 1040, 1040-5R, or 1040-NR, line 28 Schedule 8812 (Form 1040) 2022