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Prepare a tax return for Charlie and Cindy Clergy. Charlie Clergy (age 44, DOB: 5/2/76, SSN: 453-00-9863), whose Form W-2s and 1099s follow, is an

Prepare a tax return for Charlie and Cindy Clergy. Charlie Clergy (age 44, DOB: 5/2/76, SSN: 453-00-9863), whose Form W-2s and 1099s follow, is an ordained minister in the Episcopal Church. His wife, Cindy (age 46, DOB: 7/18/74, SSN: 453- 00-9864), a hair stylist, has financial information which follows. Neither wishes to designate $3 of their taxes for the Presidential Election Campaign Fund. The Clergys were covered by health insurance for the entire year. During the year, Charlie performed weddings and funerals, for which he received honorariums totaling $2,300. He had no expenses related to this income because he performed all the ceremonies in the church. Charlie has not filed Form 4361. Mr. Clergys vehicle was placed in service on 1/2/2016. Mr. Clergy uses the standard mileage rate for his vehicle. The vehicle was available off-duty and the couple had another vehicle available for use. Mr. Clergy kept records detailing his mileage and it is summarized below. Vehicle Information: Total miles driven 36,280 Miles driven to visit parishioners homes & hospitals 12,108 Commuting miles driven (daily commuting distance is 1 mile) 250 Other miles driven 23,922 The Clergys own their home. Mr. Clergys church paid their house payment and homeowners insurance, which resulted in a parsonage allowance of $12,164. The church also paid an allowance for Mr. Clergys utilities in the amount of $2,166. The annual fair rental value of the home is $13,000. Other Expenses: Mortgage interest $ 6,392 Utility bills $ 2,166 Car expenses 4,000 Personal property taxes 194 Church contributions 4,322 Real estate taxes 745 The Clergy's did not itemize last year. Mr. Clergy paid timely estimated taxes in the amount of $1,400 for federal per quarter and $400 for state per quarter. All estimated taxes were paid on their respective due dates, except for the last payment, which was paid on 12/31/202 Answer the following question based on the tax return you prepared for Charlie and Cindy Clergy. Select the total wages: A) $42,158 B) $41,382 C) $42,934 D) $44,458 2. Answer the following question based on the tax return you prepared for Charlie and Cindy Clergy. Select the total income: A) $42,158 B) $42,934 C) $45,234 D) $44,458 3. Answer the following question based on the tax return you prepared for Charlie and Cindy Clergy. Select the Adjusted Gross Income (AGI): A) $44,934 B) $42,158 C) $44,458 D) $42,610 4. Answer the following question based on the tax return you prepared for Charlie and Cindy Clergy. Select the itemized deductions or standard deduction claimed on the tax return: A) $15,783 B) $21,893 C) $24,800 D) $ 0 5. Answer the following question based on the tax return you prepared for Charlie and Cindy Clergy. Select the taxable income: A) $16,907 B) $17,383 C) $20,007 D) $15,383 6. Answer the following question based on the tax return you prepared for Charlie and Cindy Clergy. Select the total tax: A) $1,738 B) $6,385 C) $2,278 D) $6,649 7. Answer the following question based on the tax return you prepared for Charlie and Cindy Clergy. Select the total payments: A) $8,441 B) $2,841 C) $4,241 D) $5,600 8. Answer the following question based on the tax return you prepared for Charlie and Cindy Clergy. Select the refund or amount due: A) $3,574 Amount Due B) $1,103 Refund C) $2,056 Refund D) $1,792 Refund

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