Note: This problem is for the 2022 tax year.

Alice J. and Bruce M. Byrd are married taxpayers who file a joint return. Their Social Security numbers are 123-45-6784 and 111-11-1113, respectively. Alice's birthday is September 21, 1975, and Bruce's is June 27, 1974. They live at 473 Revere Avenue, Lowell, MA 01850. Alice is the office manager for Lowell Dental Clinic, 433 Broad Street, Lowell, MA 01850 (Employer Identification Number 98-7654321). Bruce is the manager of a Super Burgers fast-food outlet owned and operated by Plymouth Corporation, 1247 Central Avenue, Hauppauge, NY 11788 (Employer Identification Number 11-1111111).

The following information is shown on their Wage and Tax Statements (Form W2) for 2022.

Line	Description	Alice	Bruce
1	Wages, tips, other compensation	$58,000	$62,100
2	Federal income tax withheld	4,500	5,300
3	Social Security wages	58,000	62,100
4	Social Security tax withheld	3,596	3,850
5	Medicare wages and tips	58,000	62,100
6	Medicare tax withheld	841	900
15	State	Massachusetts	Massachusetts
16	State wages, tips, etc.	58,000	62,100
17	State income tax withheld	2,950	3,100

The Byrds provide over half of the support of their two children, Cynthia (born January 25, 1998, Social Security number 123-45-6788) and John (born February 7, 2002, Social Security number 123-45-6780). Both children are full-time students and live with the Byrds except when they are away at college. Cynthia earned $6,200 from a summer internship in 2022, and John earned $3,800 from a part-time job. Both children received scholarships covering tuition and materials.

During 2022, the Byrds provided 60% of the total support of Bruce's widower father, Sam Byrd (born March 6, 1946, Social Security number 123-45-6787). Sam lived alone and covered the rest of his support with his Social Security benefits. Sam died in November, and Bruce, the beneficiary of a policy on Sam's life, received life insurance proceeds of $1,600,000 on December 28.

The Byrds had the following expenses relating to their personal residence during 2022:

Real estate property taxes	$5,000
Qualified interest on home mortgage (acquisition indebtedness)	8,700
Repairs to roof	5,750
Utilities	4,100
Fire and theft insurance	1,900

The Byrds had the following medical expenses for 2022:

Medical insurance premiums	$4,500
Doctor bill for Sam incurred in 2021 and not paid until 2022	7,600
Operation for Sam	8,500
Prescription medicines for Sam	900
Hospital expenses for Sam	3,500
Reimbursement from insurance company, received in 2022	3,600

The medical expenses for Sam represent most of the 60% that Bruce contributed toward his father's support.

Other relevant information follows:

• When they filed their 2021 state return in 2022, the Byrds paid additional state income tax of $900.
• During 2022, Alice and Bruce attended a dinner dance sponsored by the Lowell Police Disability Association (a qualified charitable organization). The Byrds paid $300 for the tickets. The cost of comparable entertainment would normally be $50.
• The Byrds contributed $5,000 to Lowell Presbyterian Church and gave used clothing (cost of $1,200 and fair market value of $350) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition.
• Via a crowdfunding site (gofundme.com), Alice and Bruce made a gift to a needy family who lost their home in a fire ($400). In addition, they made several cash gifts to homeless individuals downtown (estimated to be $65).
• In 2022, the Byrds received interest income of $2,750, which was reported on a Form 1099INT from Second National Bank, 125 Oak Street, Lowell, MA 01850 (Employer Identification Number 98-7654322).
• The home mortgage interest was reported on Form 1098 by Lowell Commercial Bank, P.O. Box 1000, Lowell, MA 01850 (Employer Identification Number 98-7654323). The mortgage (outstanding balance of $425,000 as of January 1, 2022) was taken out by the Byrds on May 1, 2018.
• Alice's employer requires that all employees wear uniforms to work. During 2022, Alice spent $850 on new uniforms and $566 on laundry charges.
• Bruce paid $400 for an annual subscription to the Journal of Franchise Management and $741 for annual membership dues to his professional association.
• Neither Alice's nor Bruce's employer reimburses for employee expenses.
• The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax.
• This year the Byrds gave each of their children $2,000, which was then deposited into their Roth IRAs.
• Alice and Bruce paid no estimated Federal income tax, and they did not engage in any digital asset transactions during the year. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund.

Required:

Compute net tax payable or refund due for Alice and Bruce Byrd for 2022. If they have overpaid, they want the amount to be refunded to them.

• Make realistic assumptions about any missing data.
• If an amount box does not require an entry or the answer is zero, enter "0".
• Enter all amounts as positive numbers.
• It may be necessary to complete the tax schedules before completing Form 1040.
• When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar.
• Use the Tax Rate Schedule provided. Do not use the Tax Tables. Note: for the Tax Planning section only, use the 2023 Tax Rate Schedule found in Appendix A of the textbook.

Noter This problem is for the 2022 tax pear. Both children rocelved scholansips covering tuition and materiak. Other relevert infermation fellevis: - When they filed their 2021 state retum in 2022, the Byrds paid addibonal state inctime tax of $900. - During 2022, Alice and fruce attended a dinner dance sponsored by the Leweell folice Disalsility Association (a qualfied charitable organization). The Byrds paid $300 for the tichets. The cost of comparable entertainment would normally be $50. - The Byrds contributed \$5,000 to Lowoll Prebyterian Clurch and gave used clothing (cost of $1,200 and fair market value of $350 ) to the Salvation Army. All donations are supported by receipts, and the clothing is in very good condition. - Via a crovdfunding site (gofundme.com), Alice and Bruce made a gift to a needly farrily who kost their home in a fire (\$400). In addition, they made several cash gifts to homeless individuals dovmtown (estimated to be $65 ). - In 2022, the Byrds recoived internst income of $2,750, which was reported on a Form 1099-1W0 from Second National Bank, 125 Oak Street, Lonvell, MA 01850 (Employer Identification Number 98-7654322). - The home mortgage interest was reported on form 1098 by Lowell Commercial Blank, RO. Box 1000, Lowell, MA 01850 (Employer Identification Number 90-7654323). The mortgage (outstanding balance of $425,000 as of Jancary 1, 2022) was taken out by the Byrds on May 1.2018. - Alice's employer requires that all employees wear uniforms to work. During 2022, Alice spent $0s0 on new uniforma and $566 on laundry charges, - Bruce paid $400 for an annual subscription to the Joumal of Franchise Managoment and $741 for annual membership dues to his professional association. - Neither Nice's nor Bruce's employer reimburses for employve expenses. * The Byrds do not keep the receipts for the sales taxes they paid and had no major purchases subject to sales tax. - This year the Byrds gave each of their children $2,000, which was then deposited into their Roth 1RA. - Alice and Bruce paid no estimated Federal income tax, and they did not engage in amy digital asset transactions during the year. Neither Alice nor Bruce wants to designate $3 to the Presidential Election Campaign Fund. Required: Compute net tax paryble or refund due for Alice and Bruce Byrd for 2022. If they have overpaid, they want the amount to be refunded to them. - Make realistic assumptions about any missing data. - If an amount box does not require an entry or the answer is zero, enter " 0 ". - Enter all amounts as positive numbers. - It may be necessary to complete the tax schedules before completing Form 1040. - When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar. Standard Deduction Sommone can claimt None Age/Blindness Yout None Income 1a Total amount from Form(s) W-2, box 1 (see instructions) Attach Form(s) W-2 here. Also attach Forms W2G and 1099-R if tax was withheld. If you did not get a Form W-2, see instructions. b Ho c. Tip income not reported on line 1a (see instructions) d Medicaid waiver payments not reported on Form(s) W2 (see instructions) e Taxable dependent care benefits from Form 2441, line 26 f Employer-provided adoption benefits from Form 8839 , line 29. 9 Wages from Form 8919, line 6 h Other earned income (see instructions) i Nontaxable combat pay election (see instructions) z Add lines la through 1h. \begin{tabular}{|c|c} \hline 1a & 120,100 \\ \hline 1b & \\ \hline 1c & \\ \hline 1d & \\ \hline 1e & \\ \hline 1f & \\ \hline 1g & \\ \hline 1h & \\ \hline & \\ \hline 1z & \\ \hline \end{tabular} Chack Mr Work BAA Form 1040 (2022) Pruce M. and Alice 3, Dynd Page 2 Tax and Credits