Note: This problem is for the $2023$ tax year.

Alfred E$.$ Old and Beulah A$.$ Crane, each age $42,$ married on September $7,2021.$ Alfred and Beulah will file a joint return for $2023.$ Alfred's Social Security number is $111-11-1109.$ Beulah's Social Security number is $123-45-6780,$ and she has chosen to use "Old" as her married name. They live at $211$ Brickstone Drive, Atlanta, GA $30304.$

Alfred was divorced from Sarah Old in March $2017.$ Under the divorce agreement, Alfred is to pay Sarah $$1,250$ per month for the next $10$ years or until Sarah's death, whichever occurs first. Alfred paid Sarah $$15,000$ in $2023.$ In addition, in January $2023,$ Alfred paid Sarah $$50,000,$ which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is $123-45-6788.$

Alfred's salary for $2023$ is $$150,000.$ He is an executive working for Cherry, Inc. $($Federal I.D$.$ No$.98-7654321).$ As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $$20,800$ for Federal income taxes and $$8,000$ for state income taxes. The proper amounts of FICA taxes $($Social Security and Medicare$)$ were withheld.

Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. $($Federal I.D$.$ No$.11-1111111),$ as a public defender. She received a salary of $$43,800$ in $2023.$ Her employer withheld $$5,300$ for Federal income taxes and $$2,400$ for state income taxes. The proper amounts of FICA taxes $($Social Security and Medicare$)$ were withheld.

Alfred and Beulah received taxable interest income of $$500.$ Alfred and Beulah received a $$1,900$ refund on their $2022$ state income taxes; they claimed the standard deduction on their $2022$ Federal income tax return. Alfred and Beulah paid $$4,500$ interest and $$1,450$ property taxes on their personal residence in $2023.$ They paid sales taxes of $$1,400,$ for which they maintain the receipts. Alfred and Beulah have never owned or used any digital assets, and they do not want to contribute to the Presidential Election Campaign.

Required:

Compute the Olds' net tax payable $($or refund due$)$ for $2023.$ Any gross income related to group term life insurance should be added to Alfred's wages $($including those subject to Social Security and Medicare$).$ Use Form $1040$ and Schedule $1$ to complete this tax return.

It may be necessary to complete the tax schedule and worksheet before completing Form $1040.$

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter $"$

$0".$

Complete Form $1040$ for the Olds.

Form

$1040$

Department of the Treasury$$Internal Revenue Service

U$.$S$.$ Individual Income Tax Return $2023$ OMB No$.1545-0074$ IRS Use Only

For the year Jan. $1$Dec$.31,2023,$ or other tax year beginning $,,$ ending $,$ See separate instructions.

Your first name and middle initial

Alfred E$.$ Old Last name

Your social security number

$111-11-1109$

If joint return, spouse's first name and middle initial

Beulah A$.$ Old Last name

Spouse's social security number

$123-45-6780$

Home address $($number and street$).$ If you have a P$.$O$.$ box, see instructions.

$211$ Blackstone Drive Apt. no$.$

Presidential Election Campaign

Do you, or your spouse if filing jointly, want $$3$ to go to this fund. Selecting an option below will not change your tax or refund.

No

City, town, or post office. If you have a foreign address, also complete spaces below.

Atlanta, GA $30304$ State

ZIP code

Foreign country name Foreign province$/$state$/$county Foreign postal code

Filing

Status

Married filing jointly

Digital

Assets At any time during $2023,$ did you: $($a$)$ receive $($as a reward, award, or payment for property or services$)$; or $($b$)$ sell, exchange, or otherwise dispose of a digital asset $($or a financial interest in a digital asset$)?($See instructions.$)$

No

Standard Deduction Someone can claim:

None

Age$/$Blindness You:

None

Spouse:

None

Dependents

If more

than four

dependents,

see instructions

and check

here $........($see instructions$)$: $(2)$ Social security

number $(3)$ Relationship

to you $(4)$ Check the box if qualifies for $($see instructions$)$:

$(1)$ First name Last name Child tax credit Credit for other dependents

$$

$$

$$

$$

Income

Attach Form$($s$)$

W$-2$ here. Also

attach Forms

W$-2$G and

$1099-$R if tax

was withheld.

If you did not

get a Form

W$-2,$ see

instructions. $1$a Total amount from Form$($s$)$ W$-2,$ box $1($see instructions$).......................1$a fill in the blank $054$cfb$091$fa$5$fd$6\_7$

$196,500$

b Household employee wages not reported on Form$($s$)$ W$-2.......................1$b

c Tip income not reported on line $1$a $($see instructions$)..........................1$c

d Medicaid waiver payments not reported on Form$($s$)$ W$-2($see instructions$)...........1$dtion