Joseph Adam and Josephine Adam were married on June 10, 2020. They live at 1234 Main Street, Atlanta, Georgia, 30033. Joseph’s’ birthday is 9/1/1968 and his Social Security number is 532-16-6451. Josephine’s birthday is 6/8/1970 and her Social Security number is 236-21-9876. Joseph is employed as a computer programmer for Computer Services, Inc., and Josephine is an accountant for her mother’s company, Accounting Services, Inc. Joseph and Josephine would like to file a joint return for 2023. They both want to contribute to the presidential election campaign. Joseph and Josephine do not have any foreign bank accounts or trusts. They provide the following information: • Joseph received a Form W-2 from Computer Services, Inc. that contained the following information: • Line 1 Wages, tips, other compensation $49,000 • Line 2 Federal income tax withheld 7,600 • Line 3 Social Security wages 49,000 • Line 4 Social Security tax withheld 3,038 • Line 5 Medicare wages and tips 49,000 • Line 6 Medicare tax withheld 711 • Line 17 State income tax 2,200 Josephine received a Form W-2 from Accounting Services, Inc., that contained the following information: • Line 1 Wages, tips, other compensation $87,000 • Line 2 Federal income tax withheld 12,900 • Line 3 Social Security wages 87,000 • Line 4 Social Security tax withheld 5,394 • Line 5 Medicare wages and tips 87,000 • Line 6 Medicare tax withheld 1,262 • Line 17 State income tax 4,200
• Joseph was previously married to Maria. Joseph and Maria were divorced on 4/10/2017. Joseph must pay $1,000 alimony per month to Maria for the next 5 years or until Maria’s death, whichever occurs first. In 2023, Joseph paid $12,000 alimony to Maria. Maria’s social security number is 312-56-4859. • Joseph and Josephine earned interest from the following: • Savings account interest from Liberty Savings Bank $300 • Certificate of Deposit (CD) interest from Centier Bank 2,900 • Interest from City of Leesburg municipal bonds 800 • Joseph and Josephine incurred the following medical expenses for the year: • Transportation for Joseph’s cancer treatment in 2023 2,100 miles • Unreimbursed hospital charges for Joseph $7,000 • Unreimbursed prescription drug charges for Joseph and Josephine 1,800 • Unreimbursed physician charges for Joseph and Josephine 2,300 • Unreimbursed prescription glasses for Joseph 200 • Laser hair removal treatment for Josephine (so that she will no longer need to shave her legs) 2,500 • Joseph and Josephine paid $12,800 of interest payments on their primary residence (acquisition debt of $225,000). They also paid $1,500 of interest expense on Josephine’s car loan and $600 of interest on their Visa card. • Joseph and Josephine paid $4,100 of real estate taxes on their home and $1,200 of real estate tax on a vacant lot they purchased with the hope of building their dream home in the future. They also paid $3,000 in sales tax on Josephine’s car and other purchases and $800 of ad valorem personal property tax on their cars.
• Joseph and Josephine made the following contributions this year: • American Red Cross $ 400 • United Way 200 • St. Joseph’s Catholic Church 7,600 • Food for the family of Alice Martin (a neighbor who suffered a tragic car accident this past year) 225 • Stock transfer to the University of Florida (originally purchased for $1,000 in January 2007) on July 1, 2023 1,500 • Joseph won $4,100 in the state lottery. He has been playing the lottery for years, spending $10 in lottery tickets every week ($520 in total) and is careful that he saves the old tickets to keep track of the numbers he plays. • Joseph and Josephine did not buy, sell, exchange, or otherwise acquire any financial interest in a virtual currency. Requirements: Using the information provided, you are to complete Joseph and Josephine Files’s 2023 federal income tax return. • Your completed return should include Form 1040, Schedule 1, Schedule A and Schedule B. You must also submit a typed calculation of the tax liability. • The completed tax return must be completed using the IRS fill-in forms. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The links can also be accessed in Brightspace in the “resources” folder. The IRS instructions for each form and schedule may be helpful in completing the forms.