Hello

Here is a tax return project in Texas, please provide all calculations so I know where the numbers come from.

FOR TAX YEAR 2022. You Must use 2022 forms). USE THE LAW AS IT EXISTS FOR 2022 TAX RETURNS. FOR EXAMPLE, USE 2022, AMOUNTS FOR STANDARD DEDUCTION, PHASEOUT AMOUNTS, ETC. Your clients, Chandler and Monica Bing have hired you to complete their 2022 tax return (2022 tax year). They wish to pay the minimum amount of taxes possible in this tax year. Disregard AMT. They have provided you with the following information. General information (All ages as of Dec 31, 2022) They provide the majority of the support and home for their two adopted children, Jack and Erica. The children were NOT adopted in 2022 (they were adopted at birth). They also provide 100% support for Uncle Joey. Joey is not biologically the uncle to Erica or Jack, but he does live with the Bings full-time in his Joey room. Joeys only source of income in 2022 is a settlement from a jam related injury he sustained in the amount of $3,500 for bodily injury and emotional distress and $4,000 for punitive damages. Monicas mother, (Judith Geller) lives near Monica and Chandler in her own apartment which Monica helps pay for ($15,000 per year including utilities; Monica pays $7,500 and Judith pays $7,500)) starting in May after her dad died. Except for $80,000 which Judith received in Sept. 2022 as an inheritance from her deceased husbands estate (her husband died in May. 2022), she has no other source of income (assume she receives no social security in 2022). The Bings friend Phoebe died in January 2022 and she left a lump sum of $200,000 worth of mutual stock funds and an interest-bearing cash account at Edward Jones see below. Monicas friend Richard gifted an antique mustache comb to Chandler. Its fair market value is $1,100 upon date of transfer and Richards cost to acquire the comb was $50. Chandler sold the comb for $600 in 2022.

Chandler won $3,200 from a Texas Lotto game. He paid $250 total for several tickets and retained the receipts. Chandler lost gross $1,300 rolling dice. He had no other winnings and has documentation. Chandlers information Chandler works as an advertising executive. He received a W-2 (see attached). Chandler is eligible for a bonus each year. Based upon his performance in 2022 he received a $10,000 bonus. The bonus was paid in January 2023. His firm does NOT reimburse him for any out of pocket expenses that he may incur. Chandler adopted a duck and a chick from a local pet store. Adoption fees were $30. Monicas Information Monica is a cash basis, self-employed chef with her own restaurant. She didnt receive any 1099-Misc forms, but her total deposits in her business bank account for 2022 show $151,699. In addition to amounts collected from the restaurant, she also received a payment of $500 in cash on Dec 31, 2022 from a former catering client for a catering job she performed in late 2019. She did not receive a Form 1099 for this amount and she did not put this amount in her bank account. Monica rents a space to have her restaurant, but Monica also uses a small room (100 sq ft) in her home (2,000 sq ft) to keep up with payroll, order supplies, and other administrative duties. She uses her SS number in lieu of an EIN. She incurred the following business related expenses during the year: Restaurant Expenses (utilized at Restaurant) Printing/copying $2,963 Legal fees $1,200 Supplies $3,617 Internet Service used 100% for her work $1,200 Postage/UPS $296 Premium for Insurance Policy (100% Business) $1,175 Worker Salaries (assume contract labor) $58,693 Utilities $12,159 Rent $12,000 Cost of Food Sold $25,476

Home Expenses Lawn Care $1,500 Security (for office room only) $600 Utilities $3,623 During 2022 Monica purchased new appliances in March to use in her restaurant business. The cost of the equipment was $15,863. Addition information Interest Income: Interest from a City of New York municipal bond $25 AT&T bond interest $11 Edward Jones Money Market interest $0.17 DO NOT FILE ANY FORMS RELATING TO FOREIGN ACCOUNTS Dividend Income: Chandlers American Mutual Funds Account at Edward Jones $54 Total, $44 Qualified, $125 Long Term Capital Gain Stock Transactions: ASSUME IRS NOTIFICATION WAS PROVIDED BY BROKER Nintendo, 5 shares sold, net sales proceeds from broker $2,000; Date sold 03/1/2022, Basis $ 50 per share, date purchased 10/3/2015 Apple, 30 shares sold, net sales proceeds from broker $300; Date sold 4/2/2022, Basis $150 per share, date purchased 1/10/2018 Sony, 10 shares sold, net sales proceeds from broker $100; Date sold 4/1/21, Basis $1 per share, date purchased 4/1/2015 Rental Property Monica and Chandler purchased a rental property in April 2022. For 2022 they had rental income of $28,000. The propertys address is 4506 Stassney, Austin Texas 78704

The expenses for the year were as follows: Mortgage interest $4,232 Repairs and maintenance $2,654 Insurance $2,963 Other Investments Business #1 (Viva Las Gaygas). They invested $10,000 for a 75% share in this business. Chandler is a material participant in this business. The business had a profit of $10,000 in 2022. EIN for Viva Las Gaygas is 55- 7894561, Address is 123 The Strip in Las Vegas, NV Report the net taxable income from this investment on Sch E, Part II. Do not fill out passive activity forms) Medical Expenses (unreimbursed portions) Premiums for health insurance for the family $3,800 (this is the pre-tax portion Chandler had taken out of his paycheck) Medicine and drugs (prescription) 3,589 Eyeglasses 1,500 Other Unreimbursed qualified medical expenses paid by the taxpayer in 2021 all relating to doctor care and a hospital stay when Joey fell and broke his collarbone.....again, etc. 4,000* *The Bings received a check for $3,500 in 2022 to reimburse them for a portion of the $4,000 they paid in 2021 Mileage to & from a medical clinic in Houston (475 miles on Dec 11, 2021) Interest Home Mortgage interest paid on San Marcos home $13,022 Business Use Credit Card (100%) used by Monica for her business $500 Taxes Real Estate Taxes Home $ 14,800 Real Estate Taxes rental house $5,000 Contributions (you have verified all dates as correct)

All cash and clients have all required receipts and required documentation. (all are IRS recognized non-profit organizations) Salvation Army (check dated in 6/20/22) 175 Girl Scouts of America (ck dated 04/05/22, received cookies worth $10) $310 Church (paid by check dated 10/11/22) 7,200 Other/Miscellaneous CPA fees Income Tax preparation fees (paid in May 2022 for 2021 return $ 3,000 assume 75% is related to Monicas Sch C) Chandlers unreimbursed work related office supplies 1,175 Chandlers airfare to a one-day business meeting in Tulsa, OK 850 Interest paid on Chandlers student loan (got his masters in 2014) $2,800 Child care Expenses Paid for twins: Five Star After-School Care, Austin, TX ID# 05-3434567 (two days a week) $ 7,850 Estimated Taxes Paid (on time) Paid $500 for each of the four quarters; total of $2,000. Needed: Your textbook, IRS Forms, and references such as Pub 17 PREPARE the couples joint tax return for 2022. Assume that they want to claim the maximum amount of deductions possible and pay the minimum amount of taxes. Make sure to use the 2022 TAX RATES SCHEDULES Turn in a fully prepared tax return with all required schedules just as if this was being filed with the IRS use supporting working papers and/or schedules which can help explain your computations For example, if there is not enough lines to schedule out your totals, use a supporting schedule which shows how you arrived at the total.

The needed software to do the tax project, is using IRS practice lab. generic password is ( TRAINPROWEB ).

https://vita.taxslayerpro.com/IRSTraining/en/Account/Access

NEW TAX CLIENT INFORMATION SHEET Mr. (First/Middle/Last) Chandler Bing SS#460-01-6789 Birthday: 4-8-68 Mrs. (First/Middle/Last) Monica Bing SS#460-01-7891 Birthday: 4-4-69 Physical Address: 1 Westchester Rd San Marcos, TX 78666 Home Telephone Number: ____555-555-5551 Employer (Him) Advertising Copywriter (Her) Chef Children: Jack Bing 5-6-04 640-01-1234 Erica Bing 5-6-04 640-01-5678 Others: Joseph Tribiani 1-9-1968 078-05-1122 Judith Geller 10-13-1949 079-06-2233

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