Mike Weaver (Social Security number 112-11-2111) is 65 years old and was married to Marilyn Weaver (Social Security number 124-54-6789). Marilyn died on December 15, 2021. Mike inherited all of Marilyns assets. She was 55 years old when she passed away. Mike continues to live at 99 Irvine Blvd., Irvine, CA 92782 with two dependent children. Mike, Jr, Age 10, and Johnny Age 14. Mikes Social Security number is 123-45-6888 and Johnnys Social Security Number is 252-65-9523. Mike had the following transactions in 2022:

1. Mike received $165,000 included in his W-2 Box 1 from Angus Corporation, where he is an engineer. Withholding for Federal income tax was $20,500. Assume the proper amount of Social Security and Medicare tax has been withheld including the .9% ACA Medicare tax (if any).

2. Marilyn was working for ABC corporation prior to her death. Mike received $10,000 for funeral expenses from her employer to assist Mike. The amount was received in 2022.

3. Mikes father passed-away in 2020 and in 2022 he received a parcel of Land worth $ 2,750,000. There was also a Life Insurance policy from American International Group (AIG) of $1,000.000 where Mike was the sole beneficiary. The proceeds were paid to him in an annuity of $60,000 per year for 20 years starting January 1, 2022.

4. Mike won a car on the Price is Right television show in 2022. The cars MSRP was $50,000. It was a 2022 Tesla Model 3.

5. Mike received $5,200 interest on Irvine school district bonds.

6. Mike received $3,500 interest from a CD at Bank of America.

7. Mike inherited an IRA account of $25,000 from his father. He took $5,500 out of the account to meet living expenses in 2022.

8. Mike received dividends of $15,000 noted in Box 1a of the 1099-DIV. Of which $5,000 were dividends from LVMH, a French Listed Company that he has owned for 150 days, and the remaining $10,000 dividends were from Alphabet Inc. Stock which he has owed for 35 days.

9. Mike incurred $7,500 of interest expense on a margin loan with Bank of America which was used to purchase investments. 30% of the loan was used to purchase the Irvine school district bonds.

10. Mike received $12,500 alimony to his former wife, Monica Weaver (Social Security number 124-48- 8786). The divorce was finalized in 2003.

11. Mike kept the receipts for their 2022 sales taxes paid of $2,100.

12. Mikes other deductions are as follows: Real estate taxes on their principal residence were $10,500. Mortgage interest on their principal residence was $27,500. Mortgage Balance was $850,000 at the beginning of the year and the house was purchased in 2017. Cash contributions to the United Way totaled $5,500. Non-cash contributions of $400 to Salvation Army of household goods. Medical Expenses related to Doctors, etc. of $25,000 (Note the maximum amount was paid out of their Health Savings Account see below). Job related unreimbursed expenses of $9,500 related to travel for his job. Tax Preparation Fees of $2,500. Contributions to the Mayor of Irvines campaign of $2,700. State income tax paid and withheld totaled $ 4,500.13. Mike set up a new Health Savings Account for the maximum amount allowed in 2022 for the family. He has a high deductible medical plan at Angus Corporation. The account earned $1,000 of interest income in 2022. The balance in the account was zero at 12/31/2022.

14. Mike contributed $10,000 to each of the kids 529 plans in 2022.

Compute the Weavers net federal tax payable (or refund due) 2022. Use the 1040 and applicable other forms that you need to file a return with the IRS for 2022. Do not prepare the California return. You have been provided Intuit in Canvas to complete this assignment. You can also use your own software or prepare by hand if you so desired. In addition to the federal returns for 2022, you need to prepare a narrative explaining all the items in this problem and why income items are taxable or nontaxable and why deduction items are deductible or not deductible. Include ALL THE PROPER AUTHORITES. Lastly, discuss the taxpayers tax situation with your observations. Returns turned in without a narrative will not get credit for this assignment. The assignment is due October 7, 2023, 11:55pm. Project is worth 150 points. Turn in via canvas. Any plagiarism will not be tolerated, and you will receive a zero on this assignment and possibly more disciplinary action by the University.