It is November 2022 and you are working with Jim and Cherie Johnson (both retired living in Georgia). They have just come to you for a second opinion on their financial situation. They have been retired for two years and a friend (client of the firm) encouraged them to come in and meet with you. Jim is 71. He turns 72 in February of next year. His SSB was $40,000 this year. Cherie is also 71 (will turn 72 next year) and received Social Security benefits of $25,000 this year. Both Jim and Cherie have received notice that their benefits will increase by 6% next year. Jim enjoys coaching high school sports and working with young people. He earns $10,000 per year (paid on a 1099 NEC Form) for this work, but it is largely for fulfillment, not financial benefit. Jim and Cherie have taxable interest income from their investments of $24,000 per year and $31,000 of qualified dividends. While Jim and Cherie do not sell capital assets very frequently, their current portfolio manager generates about $4,000 of long-term capital gains each year. Jim is receiving a pension of $16,000 per year. All contributions to Jims pension were pre-tax contributions. Jim and Cherie are generally in good health and they pay $13,000 a year for private health insurance. They have property taxes of $8,000 per year and cant recall what they pay in Georgia income taxes (you will need to estimate this...Google retiree taxation in Georgia). They also paid mortgage interest of $6,000 on their home. They give $10,000 to their church each year. They are currently making federal estimated tax payments of $1,500. Overall Jim and Cherie live a fairly conservative lifestyle. They have a lake house that they enjoy spending time with the grandkids. Their children are all doing well and they usually have money left in their checking and savings accounts at the end of the year. Jim and Cherie also brought you their account statements. Their current portfolio manager has them in a 60% equity / 40% bond allocation, which is consistent with their risk tolerance. The allocation within each of their accounts follows this overarching asset allocation model (each account has a 60%/40% asset allocation). Their account balances are: Jims IRA - $1,250,000 (projected for 12/31/2021) Cheries IRA - $560,000 (projected for 12/31/2021) Joint brokerage account - $1,900,000. Currently, the Johnsons portfolio is invested using ETFs, mutual funds, and just a few individual stock positions (the individual stock positions are largely at the request of Jim and Cherie). They are primarily invested in bond funds for the fixed income portion of their portfolio. All the portfolio estimates expect a weighted average return of 6.7% annually. Equities (60% of portfolio) are expected to return 8.15% and bonds (40% of portfolio) are expected to return 4.5% next year and over the foreseeable future You will need to prepare (estimate) their 2022 tax return based on the information provided. What is Jim and Cheries tax liability? You will also need to estimate their 2023 tax return. What is Jim and Cheries tax liability for 2023? Is there anything that Jim and Cherie can do now (December of 2022) and going forward that will improve their tax situation? Please create two 2023 tax projections, one with your recommendations, and one without any of your recommendations. Please explain all of your recommendations