General Information You have been asked to complete a tax return for James Lawrence, (SSN: 103-04-1950, DOB: 9/25/78) and Maria Lawrence (SSN: 103-03-1950, DOB: 4/18/79), who are married to each other. The Lawrences live with their daughter, Erika (SSN: 103-05-1950, DOB: 03/18/11). Their phone number is 919-555-1001. They all had health insurance the entire year.

Wages/Salaries James is an engineer for a local firm. He has a W-2 from his employer with $95,000 in Box 1. The W-2 reflects $12,000 in federal income tax withheld and $3,500 in NC tax withheld. Appropriate amounts were withheld for FICA. James is covered by a retirement plan. The entire family receives health insurance from James employer. Maria is a neo-natal nurse. She has a W-2 from her employer with $110,000 in box 1. The W-2 reflects $15,000 in federal income tax withheld and $4,500 in NC state income taxes. Appropriate amounts were withheld for FICA.

Investments James sold 100 shares of ABC stock on 2/15/2022 and the proceeds were $22,000 and he paid a broker fee of $150 for this transaction. James paid $10,000 for these shares when he originally purchased them on 6/18/2015. He also purchased 500 shares of DEF stock on 3/15/2022 for $10 each and they were worth $5 each according to his active brokerage account statement for the period ending 12/31/2022. Maria purchased 400 shares of GHI stock on 10/12/2021 for $18 each and sold them all on 1/8/2022 for $15 each plus a $125 brokerage fee.James and Maria earned $357 of interest from their joint savings account for the full year 2022. They also paid $282 of investment interest expense during 2022 for loans take to help finance their stock purchases.

Property The Lawrences own a home at 123 Hillsborough Street in Raleigh, NC 27695. They have a mortgage on the home for $500,000 and paid $24,500 in mortgage interest in 2022 according to the form 1098 they provided to you. The local property taxes on their vehicles totaled $280 and the property tax on their home was $7,200.

Other information In 2022, the Lawrences donated $6,000 in cash to 501(c)(3) charitable organizations. Maria received a $18,000 cash inheritance from a distant relative who died in 2022.

Please complete the Lawrences 2022 federal income tax return (NOT the NC income tax return) using Form 1040 and all applicable accompanying schedules. You may fill in the forms either by hand or type them.