Please help ASAP. Thanks in advance! Kelly and Chanelle Chambers, ages $47$ and $45,$ are married and live at $584$ Thoreau Drive,

Boston, MA $59483.$ Kelly$$s Social Security number is $111-11-1111$ and Chanelle$$s is $222-22-2222.$ The Chambers have two children: Emma, age $23,$ and Chet, age $19.$ Their Social

Security numbers are $333-33-3333$ and $444-44-4444,$ respectively. Emma is a single

college student and earned $$8,000$ during the summer. Kelly and Chanelle help Emma

through school by paying for her room, board, and tuition. Emma lives at home during

the summer. Chet has a physical handicap and lives at home. He attends a local university.

and earned $$4,000$ working for a marketing firm. In sum, Kelly and Chanelle provide.

more than $50\%$ of both Emma$$s and Chet$$s total support for the year.

Kelly is a commercial pilot for a small airline. His salary is $$95,000,$ from which.

$$19,000$ of federal income tax and $$8,000$ of state income tax were withheld. Kelly also

pays premiums for health, disability, and life insurance. $$2,000$ of the premium was for

health insurance, $$250$ for disability, and $$400$ for life insurance.

Chanelle owns Alliance Networks, a proprietorship that does network consulting.

During the year, Chanelle$$s gross revenues were $$23,000.$ She incurred the following expenses in her business:

Liability insurance $$700$

Software rental $5,400$

Journals and magazines $150$

Training seminars $1,200$

Supplies $1,300$

Donations to a political campaign fund $800$ Kelly enjoys playing guitar and plays in a band. Kelly$$s band has developed a local following. This year, his gross revenues were $$1,200$ for playing shows and $$700$ on CD$.$

sales. He incurred the following expenses:

Studio rent expense $$1,300.$

Sound system repairs $200$

CD production $500$

New guitar and amplifier $800$

Kelly$$s father passed away during the year. Kelly and Chanelle received $$100,000$ from

the life insurance policy. Neither Kelly nor Chanelle paid any of the premiums.

Chanelle purchased $100$ shares of Thurston Co$.$ stock on May $1,1993,$ for $$1,000.$

Thurston Co$.$ was declared bankrupt during the current year.

Chet$$s physician recommended that he see a physical therapist to help with his dis$-$ability. Kelly paid the therapist $$7,000$ during the year because his insurance would not.

cover the bills.

Kelly and Chanelle went to Las Vegas and won $$5,000$ at the blackjack table. The next

night, they lost $$6,000.$

Kelly and Chanelle gave $$900$ to their church, and, during the year, they had the following other income and expenses:

Real estate taxes $$1,400$

Property taxes on car $($determined by value$)500.$

Home mortgage interest $12,000$

Credit card finance charges $2,600$

Tax return preparation fees $($$$600$ is allocable to Chanelle$$s business$)1,000.$

Sales tax on purchases during the year $6,200$

Interest from a savings account $800$

Interest from City of Boston Bonds $700$

Dividend from $3$M stock $400$

Prepare Kelly and Chanelle$$s tax return Form $1040$ and Schedules A$,$ B$,$ C$,$ D

Make sure to treat dividends as qualified dividends and manually complete the capital gains tax worksheet $($as you do for tax return $1).$

Form $1040$ Adjusted Gross Income: $114,785$

Schedule $1$ page $1$ total on line $10$: $20,550$

Schedule A Total Itemized Deductions: $28,191($make sure to use $7\mathrm{.}5\%$ of AGI for medical cutoff$)$

Schedule C Net Profit or Loss: $13,650$

Schedule SE and Schedule $2,$ Self$-$Employment tax: $1929$

For the $1040$ QBI deduction $($form $1040$ line $13)$ use $$2,537.$ You do not need to calculate this, just use this number.

Form $1040$ Taxable Income: $84,057$