1. Please conduct a Tax Return for the year 2022 on the following couple below
   1. Present the current years tax situation and how you can lower the clients tax liability. We need to consider 2023 too.

Appointment Date: 12/___/2022

Address: 410 Lincoln Ave., Orange City, IA 51041

Taxpayers Name: Mike Smith

1. Born 03/26/1977
2. SSN 789-25-4555

Taxpayers Spouse: Wendy Smith

1. Born 03/25/1977
2. SSN 445-22-1456

Dependents: Emma Smith (Birthdate 09/23/2003), Syndey Smith (Birthdate 09/01/2006), Carson Smith (Birthdate 10/20/2008). *The total child tax credit is $4,500 ($2,000 x 2 + $500 x 1) via Partner

W-2 Wages:

1. Taxpayer:
   1. Dordt University
      1. Net Wages = $130,000
      2. Federal Taxes Paid = $4,700
      3. State Taxes Paid = $4,500
      4. Health Ins (Form 1065 B) $15,000 for family
      5. HSA Contributions made by the employer are $1,500 and $2,000 by the employee.
      6. HSA Qualified Distributions = $1,500
2. Spouse:
   1. Orange City Area Hospital
      1. Net Wages = $45,000
      2. Federal Taxes Paid = $3,000
      3. State Taxes Paid = $2,000
      4. HSA Contributions made by employer = $500

Interest/Dividends:

1. Northwestern Bank Interest= $1,000
2. American Funds Dividend: $1,500 ordinary (all are qualified dividends)

Capital Gains/losses:

1. Sold NYC stock for 10,000 (basis 2,000) on 2/2/22. Purchased the stock on 1/1/2015.
2. Sold YTT Stock for 6,000 (basis $25,000) on 4/5/22. Purchased the stock on 3/3/20116.
3. Sold personal use automobile for $3,000 on 6/6/22. Purchased car for $8,500 on 1/1/14.

Other Income:

1. Dog boarding Revenues: $4,000
2. Dog boarding Expenses: $5,000 (supplies, etc)

I have no previous experience in conducting this business, and I dont see it being very profitable, but I really enjoy this line of work

Deductions:

1. FORM 1098 Mortgage Interest = $5,000
2. FORM 1098 Real Estate Taxes = $6,000
3. Personal Property Taxes (Car registration, etc.) = $500
4. Medical Expenses (Doctor, dentist, etc.) = $3,000
5. Charitable Contributions = $15,000 cash to church
   1. Also, donated WFC stock (Basis = $2,000 FMV = 6,000). Purchased 1/1/14; Sold 4/6/21
6. K-12 Private school tuition = $10,000
7. Student Loan Interest = $4,000
8. Food/Groceries = $5,000
9. Car Payment = $4,000

Sole Proprietorship (same address as personal)

1. RAS Consulting (Sole Proprietorship)
   1. EIN: 42-4512545
   2. Business Code: 99999
   3. Income:
      1. Consulting fees = $27,000
   4. Expenses:
      1. Food = 500 (100% in 2022)
      2. Entertainment = 600
      3. Travel = 1,000
      4. Supplies = 200
      5. Gas = 1,000
      6. Purchased automobile on 2/1/2022 for $15,000
      7. Miles driven for business purposes: 11,000

1. Maintain an office in our home of approximately 350 square feet (Total square footage is 1,600)
2. Purchased a new copier and desk on January 1 of this year. Copier cost $300 and desk was $3,750.