Prepare Federal tax return: The taxpayers are Bill Beau Bagin $($social security number $333-33-3330),$ born January

$17,1973,$ and his wife, Sara Lee Bagin $($social security number $444-44-4440),$ born April

$12,1973.$ Both have good eyesight, and live with their two children, Ned and Megan, at

$789$ N$.$ Code Drive, Chicago, Illinois $60699,(312)679-9999.$

Mr$.$ Bagin wants to contribute $$3$ of his income tax to the Presidential Election Campaign

Fund. Mrs$.$ Bagin elects not to contribute.

The Bagins$$ son, Ned, is a $17-$year$-$old high school student, born June $15,2005.$Their

daughter, Megan, is twelve years old, born August $9,2010$and a junior high school

student. Neither child had any income. Ned$$s social security number is $300-11-0001$and

Megan$$s social security number is $300-33-0003.$

Wages and Expenses Generally

During$2022,$ Mrs$.$ Bagin was employed as an elementary school teacher, employed at

Elementary School $0205,$ Main Street, Chicago, IL $60699.$ The school$$s employer ID# is

$99-6665432.$

Her Form W$-2$ for$2022$reports the following:

Box $1.$ Wages, tips and other compensation $$56,350$

Box $2.$ Federal income tax withheld $$4,569$

Box $4.$ Social security tax withheld $$3,497$

Box $6.$ Medicare tax withheld $$817$

Box $17.$ State income tax $$2,536$

Mr$.$ Bagin works part$-$time at Joker Grocery, West Maple, Chicago, IL $60689.$ His Form

W$-2$ for $2022$ reports the following:

Box $1.$ Wages, tips and other compensation $$12,000$

Box $2.$ Federal income tax withheld $$0$

Box $4.$ Social security tax withheld $$744$

Box $6.$ Medicare tax withheld $$174$

Box $17.$ State income tax $$0$

Neither Mr$.$ nor Mrs$.$ Bagin is covered by their employer$$s retirement plan. Mrs$.$ Bagin

made a $$1,500$ contribution to a traditional IRA and a $$2,000$ contribution to a Roth IRA

in $2022.$ Mr$.$ Bagin decided against making a contribution to a traditional IRA.

The Bagins received a $$520$ state income tax refund. They used itemized deductions of

$$25,420$ on their $2021$ federal income tax return and elected to take the state income tax

as a deduction. The Bagins also received a $$310$ federal income tax refund.

The Bagins made federal estimated tax payments of $$2,100$ for $2022.$

The Bagins incurred the following medical expenses during $2022$:

$$ prescription drugs $$1,000$

$$ doctor bills $$6,724$

$$ hospital bills $$4,256$

$$ transportation $$100$

$$ eyeglasses $$500$

The Bagins own their residence. They paid $2022$ real estate taxes $$4,300$ on July $1,$

$2022.$

Mr$.$ and Mrs$.$ Bagin paid the total of $$8,675$ home mortgage interest on the residence.

Their mortgage company is Any Bank on South Street in Chicago, IL $60689.$ Their account

# is $11000011.$ They paid the following personal interest in $2022$:

$$ $$1,625$ to finance Mrs$.$ Bagin$$s car, and

$$ $$400$ in credit card interest.

The Bagins gave $$1,500$ in cash to various recognized charities; no individual gift was

$$250$ or more; all charities sent an acknowledgment of the contribution. They had no

carryover charitable contributions.

Mrs$.$ Bagin bought $$345$ of supplies for her classroom.

Dividends and Interest

During $2022,$ the Bagins received $$780$ in interest from the Heartland National Bank, EID

$99-9990001$ and $$150$ as nominees for Julia Major $($Mrs$.$ Bagin$$s mother from the Third

National Savings and Loan, EID $55-0001234.$ They received $$450$ in interest from taxexempt bonds issued by the State of Illinois. The Bagin$$s received the following qualified

dividends: $$715$ from E&Z Tax Preparation, Inc., and $$350$ from Secure Money Market

Fund.

Sale of Stock and Other Investments

During $2022,$ the Bagins sold the following capital assets:

$(1)$ On February $2,100$ shares of Ahab Inc. were sold for $$1,000.$ They had been

purchased on November $18,2008$ for $$3,500.$

$(2)$ On November $5,200$ shares of Pequod Inc. were sold for $$10,000.$ They had

been purchased on January $5,2008$ for $$7,000.$

$(3)$ On December $4,100$ shares of Squall Inc. were sold for $$12,500.$ They had

been purchased on January $4,1998$ for $$9,000.$