Prepare a $2023$ Federal Tax Return based on the client information

below: $$ Michael Peppin is $49$ years old $($born December $10,1974)$ and a high

school art teacher and also operates a small side painting

business. His Social Security Number is $555-58-8989$

$$ His spouse, Tammy Peppin is $40$ years old $($born on February $15,$

$1983)$ and stays home taking care of their youngest child. Tammy$$s

social security number is $123-56-8899.$

o Their youngest child is David Peppin, who is $4$ years old

$($born on July $10,2019).$ His Social Security number is $111-$

$25-8656.$

$$ They also have an older child, Susan Peppin, who is $19$ years old

is a freshman at American River college. She was born August $15,$

$2004$ and her social security number is $455-89-7475.$

o Susan received a $1099-$t for her tuition and materials she

was required to buy from the college. The tuition was $$845$

and the required books and supplies were an additional

$$1725.$ ARC Federal Tax ID number is $94-1576340.$

o Susan also worked parttime and her $2023$ W$-2$ showed wages of

$$4,721,$ and Federal Withholding of $$288.$

o Susan lives at home with her parents and they provide

greater than half of her support.

$$ The Peppin family lives at the following address in Folsom:

o $2523$ East Bidwell Street, Folsom Ca $95630$

$$ The Peppin$$s did not have any crypto currency transactions and

elected not to contribute to the Presidential election campaign.

Income and Potential Deduction Information

$$ Michaels$2022$ W$-2$ from his teaching job, displays wages of

$$79,500,$ Federal tax Withholding $$5,050$ and California tax

Withholding $ $4,690$

$$ Michael received Form $1099$ INT from National Bank showing $$550$ of

interest income and a $$55$ Early Withdrawal Penalty

$$ Michael also received Form $1099$ DIV showing Ordinary Dividends of

$$513$ and Qualified Dividends of $$513$

$$ Michael received a Form $1098-$E showing $$750$ on Student Loan

Interest paid

$$ Michael received Form W$-2$G showing gambling winnings of $$1,200$

from slot machine at Thunder Valley casino.

$$ Michael brings documentation for the following personal expenses:

o $$8,200$ Hospital bills

o $$1,600$ Dental bill for daughters braces

o Susan had elective plastic surgery which cost $$3,300$

o $$452$ Personal property taxes based on value of vehicle

o $$400$ Friend$$s personal GoFundMe campaign

o $$275$ Cash contributions to the Red Cross

o $$2,025$ Cash contributions to their church

o $$250$ Fair market value of clothing in good condition donated

to the Salvation Army $($Michael had purchased the clothing

for $$800)$

o $$10,575$ Mortgage interest $($Form $1098)$ on a $$420,000$ loan he

took out on $5/23/2017$

o $$7,820$ Real estate tax paid to the County

o $$2,450$ Homeowners Insurance

o $$1,050$ Homeowners association fees

o $$2,000$ Gambling losses

o $$275$ in classroom supplies he purchased for use where he

teaches.

Small Business Information

$$ Michael also owns a small painting business that he operates on

the weekends and summers when he is not teaching. He provided the

following information regarding the painting business:

o He received Form $1099-$K showing electronic processed

payments received of $$5,200$

o He mentioned that he also received a total of $$5,500$ from

customers that paid in cash

o He shows the following expenses for his business:

$$ License$/$Fees $$375$

$$ Business Insurance $$415$

$$ Advertising $$550$

$$ Paint Tools and Supplies $$1,980$

$$ Paint $$3,325$

$2022$ Tax Preparation Fees paid in $2023$ $$550$

$$ Business cell phone plan cost for $2023$ $$640$

$$ Business Mileage for his work truck $(2012$ Toyota

Tacoma$)$ was $615$ business miles and $3251$ total miles for

the year