Julia is a data entry clerk, age $26,$ and single.

$$ Julia has investment income and a consolidated broker$$s statement.

$$ Julia is self$-$employed delivering groceries for Quick Market on the weekends. She received a Form $1099-$ NEC and a Form $1099-$K$.$ She received additional cash payments of $$535.$

$$ Julia uses the cash method of accounting. She uses business code $492000.$

$$ Julia provided a statement from the grocery delivery service indicating the fees paid for the year. These

fees are considered ordinary and necessary for the grocery delivery business:

o $$150$ for insulated box rental

o $$50$ for vehicle safety inspection $($required by Quick Market$)$ o $$600$ for Quick Market fees

$$ Julia also kept receipts for the following out$-$of$-$pocket expenses:

o $$80$ for business parking o $$300$ for speeding ticket o $$160$ for Julia's lunches

$$ Julia$$s record keeping application shows she has driven a total of $2,500$ miles during and between deliveries.

o She placed her only vehicle, an SUV, in service on $3/15/2020.$ The total mileage on her SUV for tax year $2023$ was $12,000$ miles. Of that, $9,500$ miles were personal and commuting miles. Julia will take the standard business mileage rate.

$$ Julia is paying off her student loan from $2017,$ when she completed her undergraduate degree.

$$ Julia is working towards her Master of Education degree to start a new career as an Associate Professor.

She took a few college courses this year at an accredited college.

$$ Julia took an early distribution of $$3,000$ from her IRA in April. She used $$2,400$ of the IRA distribution to pay her educational expenses for the current year.

$$ If Julia has a refund, she would like it deposited into her checking account.What is the net long term capital gain reported on Julia's Schedule D$?$

a$.$ $$350$ b$.$ $$2,100$ c$.$ $$2,450$ d$.$ $$6,100$

$24.$ Which of the following can be claimed as a business expense on Julia's Schedule C$?$

a$.$ Business Parking b$.$ Speeding Ticket c$.$ Lunches

d$.$ All of the above

$25.$ Julia can take a student loan interest deduction of $$3,250.$ a$.$ True

b$.$ False

$26.$ What is the total standard mileage deduction for her business on Schedule C$?$

a$.$ $$983$ b$.$ $$1,638$ c$.$ $$2,500$ d$.$ $$2,518$

$27.$ The amount of Julia's lifetime learning credit is $$480.$ a$.$ True

b$.$ False

$28.$ What is Julia's additional $10\%$ tax on the early withdrawal from her IRA?

a$.$ $$0$ b$.$ $$60$ c$.$ $$240$ d$.$ $$300$

$29.$ How can Julia prevent having a balance due next year?

a$.$ She can increase the withholding on her Form W$-4.$

b$.$ She can make estimated tax payments.

c$.$ She can use the IRS withholding calculator to estimate her withholding for next year. d$.$ All of the above$95$