Note: This problem is for the 2022 tax year.

Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2020. Alfred and Beulah will file a joint return for 2022. 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 2022. In addition, in January 2022, 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 2022 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 $22,800 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes.

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 $42,000 in 2022. Her employer withheld $6,300 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes.

Alfred and Beulah received taxable interest income of $500. Alfred and Beulah received a $1,900 refund on their 2021 state income taxes; they claimed the standard deduction on their 2021 Federal income tax return. Alfred and Beulah paid $4,500 interest and $1,450 property taxes on their personal residence in 2022. 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 2022. 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".
• Make realistic assumptions about any missing data.
• When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.
• Use the 2022 Tax Rate Schedule provided. Do not use the Tax Tables.

than four dependents, see instructions and check here ....... Income Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. If you did not get a Form W-2, see instructions. \begin{tabular}{l|c|c|c|c} \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} 1a Total amount from Form(s) W-2, box 1 (see instructions) b Household employee wages not reported on Form(s) W-2 . c Tip income not reported on line 1 a (see instructions). d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) e Taxable dependent care benefits from Form 2441, line 26 f Employer-provided adoption benefits from Form 8839, line 29 g Wages from Form 8919, line 6 h Other earned income (see instructions) i Nontaxable combat pay election (see instructions) z Add lines 1a through 1h b Taxable interest b Ordinary dividends b Taxable amount b Taxable amount \begin{tabular}{|c|r|} \hline 1a & 19,800 \\ \hline 1b & \\ \hline 1c & \\ \hline 1d & \\ \hline 1e & \\ \hline 1f & \\ \hline 1g & \\ \hline 1h & \\ \hline & \\ \hline 12 & \\ \hline 2b & \\ \hline 3b & \\ \hline 4b & \\ \hline 5b & \\ \hline \end{tabular}