***Please prepare a mock tax return with the necessary forms using the following information. Thanks!***

Josh (age 44) and Carli (age 41) Wiedman are married and file a joint tax return. Your firm is preparing the return. They reside with their 19-year-old son Ryker and 12-year old son Blake. Ryker is a freshman at university and lives on campus but returns home during the summer and breaks. Ryker does not provide greater than of his own support. They do not want to contribute to the Presidential election campaign and did not receive, sell, send or exchange and financial interest in virtual currency. Their Social Security numbers are listed below: Josh 123-45-6789 Carli 987-65-4321 Ryker 456-78-9012 Blake 789-12-3456

1. Carli is a medical transcriptionist for Beaumont Clinic, where she earned $60,000 in cash (after paying for her health insurance and contributing to her 401(k)). Her employer offered health insurance through a high deductible plan and paid $7,000 of the $12,000 of premiums (Carli paid the other $5,000 and it was deducted from her wages). Carli also participated in the employers defined contribution plan and contributed $8,000 to a 401(k). The employer matched her contribution and also contributed $8,000. Her employer withheld federal income tax of $9,375, state income tax of $2,000, and social security and Medicare tax of $4,590.

2. The Wiedmans sold 200 shares of DM stock for $18 a share on June 15, 2021. They purchased the stock on December 12, 2012 for $10 a share. They also sold 100 shares of RSA stock for $15 a share on October 2, 2021. She purchased the stock for $75 a share on February 2, 2021. The couple received a Form 1099-B related to the sales showing their basis. As a result, you do not need to complete Form 8949 and can include short-term totals on line 1a and long-term totals on line 8a of Schedule D.

3. The Wiedmans received $800 of interest from Federal Credit Union on a joint savings account. They received interest of $1,000 on City bonds they bought in January. They received dividends of $540 on Family Foundation Corporation stock, $390 on Boiler Corp. stock and $865 on Culvers Corp. stock. All of the dividends are qualified dividends. All taxable amounts must be included on Schedule B. They did not have any foreign accounts and trusts.

4. Carli won $5,000 in the state lottery. She plays the lottery every week ($10 in lottery tickets every week for $520 total and she saves the old tickets to keep track of the numbers she plays).

5. They also paid the following taxes in the current year:

Real estate taxes on their principal residence $4,762

Estimated state income tax payments $1,000

State tax payment in the current year related to last years return $1,500

6. They also paid the following interest in the current year (they received a Form 1098 for the mortgage interest):

$3,500 related to a car loan

$1,500 related to a credit card used for personal purposes

$8,200 related to the original purchase of their personal residence. The amount of the loan was $400,000.

$2,000 related to the original purchase of a vacation home. The amount of the loan was $300,000.

$2,000 of home equity debt tied to their personal residence used for a vacation.

7. They made the following charitable contributions during the year:

Cash contribution to their church $3,000

Apple stock to university (originally purchased in 2015 for $3,000, and now worth $5,000). You do not need to prepare a Form 8283.

Food for a neighbor who suffered a tragic car accident this past year $250

You do not need to prepare a Form 8283.

The charitable contribution limitations do not apply.

8. Josh owns a dental practice (sole proprietorship) called Choppers. The business code is 621210, and his employer identification number is 01-2222222. Choppers gross receipts during the year were $111,000. Choppers uses the cash method of accounting for his business, he materially participates, did not start the business in the current year, did not make payments that require to file Form 1099, and the business expenses were as follows:

Wages to employees 40,000

Dental supplies (not COGS) 6,000

Rent for the office 25,000

All expenses are currently deductible in the current period, is not taking any employment credits, and the business has no qualified property for the qualified business deduction.

1. Josh and Carli paid $10,000 in tuition to university for Ryker during 2021 that qualifies for the American Opportunity Credit. Ryker received a Form 1098-T from university but box 7 was not checked, and you do not need to fill in line 22 (1), 22 (2) = Yes, 22 (3) = No, do not complete 22 (4), 23 = No, 24 = Yes, 25 = No, 26 = No, 31 = 0.