Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $173,830 (which consists only of salary) for purposes of this problem. December 31, 2022 To the friendly student tax preparer: Hi, it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know. Let me tell you a few more things about my life. As you may recall, I am divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady Jr. The judge owed me a few favors and I really love the kid. He lives with me full time and my ex-wife gets him every other weekend. I pay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, I guess. I had to move this year after getting my job at Roca Cola. We moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move our stuff at a cost of $2,330, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65 (I love Super 8!). Can you believe I'm still paying off my student loans, even after 15 years? I paid a total of $915 in interest on my old student loans this year. Remember when I told you about that guy that hit me with his car? I had a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance. I incurred a total of $20,300 in medical expenses, and I was only reimbursed for $11,150. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year (and have receipt documentation for all contributions). I'm such a nice guy! I gave $1,030 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff!! contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,150 today (the appraiser surprised me!), even though I only paid $1,030 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some nonnin luet haun no tarte right? Does Cals had a charity drun for the 1 laited Way this unar and contributed $100 Turne Drou reimbursed by the lawsuit or by my insurance. I incurred a total of $20,300 in medical expenses, and I was only reimbursed for $11,150. Good thing I can write off medical expenses, right? I contributed a lot of money to charity this year (and have receipt documentation for all contributions). I'm such a nice guy! I gave $1,030 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! I contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,150 today (the appraiser surprised me!), even though I only paid $1,030 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. Oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and I contributed $108. Turns out, I don't even miss it because Roca Cola takes it right off my paycheck every month... $18 a month starting in July. My pay stub verifies that I contributed the $108 to the United Way. Oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. I gave him $515 to help him out. I paid a lot of money in interest this year. I paid a total of $980 in personal credit card interest. I also paid $19.080 in interest on my $530,000 home mortgage that helped me buy my dream home. I also paid $2,060 in real estate taxes for my new house. A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $930. I paid $140 in union dues this year. I had to pay $1,200 for new suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,330 to pay for gas to commute to my job this year. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,430 in tuition to go to the local firefighter's school. I did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. That should be all the information you need right now. Please calculate my taxable income and complete page 1 of Form 1040 (through taxable income, line 15) and Schedule A. You're still doing this for free, right? That should be all the information you need right now. Please calculate my taxable income and comp 1040 (through taxable income, line 15) and Schedule A. You're still doing this for free, right? b. Complete pages 1 of Form 1040 (through taxable income, line 15) and Schedule A. Shady Slim's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Shady Slim: 123-45-6789 Shady Slim,Jr: 222-22-2222 (Round your intermediate computations to the nearest whole dollar amount. Input all the values as posit non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in a Problem Statement. Use 2022 tax rules regardless of year on form.) Shady Slim does not wish to contrib Election Campaign fund or did not have any virtual currency transactions or interests. Form 1040 for a Head of household with one dependent. Required information Form 1040 Page 1. Form 1040 Filing Status Check only one box, Department of the Treasury- Internal Revenue Service (99) U.S. Individual Income Tax Return Single Married Wing jointly IRS Use Only-Do not write or staple in this space. 2021 OMB No. 1545-0074 Married filing separately (MFS) OHead of household (HOH) Qualifying widow(er) (QW) If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is a child but not your dependent. Your first name and middle initial Last name Your social security number If joint retum, spouse's first name and middle initial Last name Home address (number and street). If you have a P.O. box, see instructions. City, town, or post office. If you have a foreign address, also complete spaces below. Foreign country name Foreign province/state/county Apt. no. State ZIP code Foreign postal code Spouse's social security number Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. Spouse Yes No At any time during 2021, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? You Standard Deduction Someone can claim You as a dependent Your spouse as a dependent Age/Blindness Dependents You: (see instructions): Spouse temizes on a separate retum or you were a dual-status alien Were bom before January 2, 1957 Are blind Spouse: Was bom before January 2, 1957 Is blindi (2) Social security number (3) Relationship to you (1) First name Last name (4)if qualifies for (see instructions) Child tax credit Credit for other dependents If more than < Prev 82 of 2 www Next rd OUTTHOLE C claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status allen Were bom before January 2, 1957 Are blind (2) Social security number Spouse: Was bom before January 2, 1957 Is blind (3) Relationship to you (4)if qualifies for (see instructions): on dness You: ents (see instructions) (1) First name Last name ore than + ndents, uctions k here Child tax credit 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 ch. B if 2a Tax-exempt interest 3a Qualified dividends 28 b Taxable interest 2b 3a b Ordinary dividends 3b 4a IRA distributions Sa Pensions and annuities 4a b Taxable amount 4b 5a b. Taxable amount 5b 6a Social security benefits b Taxable amount 6b d on for- or Married parately d filing 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 8 Other income from Schedule 1, line 10 9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income 7 8 9 10 A 11 10 Adjustments to income from Schedule 1, line 26 r ng 11 Subtract line 10 from line 9. This is your adjusted gross income er), D 12a Standard deduction or itemized deductions (from Schedule A) 128 of old, D checked b Charitable contributions if you take the standard deduction (see instructions) cAdd lines 12a and 120 12b kunder rd ion, 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 14 Add lines 12c and 13 tructions. 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-0-1 < Prev 2 of www of 2 Next 12c 13 14 15 Credit for other dependents Required Information 1040 PG 1 Schedule A Form 1040 Schedule A. SCHEDULE A (Form 1040) Department of the Treasury Internal Revenue Service (99) Name(s) shown on Form 1040 or 1040-SR OMB No. 1545-0074 Itemized Deductions Go to www.irs.gov/ScheduleA for instructions and the latest Information. Attach to Form 1040 or 1040-SR. Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. 2021 Attachment Sequence No. 07 Your social security number Medical and Dental Expenses Taxes You Paid Caution: Do not include expenses reimbursed or paid by others. 1 Medical and dental expenses (see instructions) 2 Enter amount from Form 1040 or 1040-SR, line 11 3 Multiply line 2 by 7.5% (0.075) 2 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter-0- 5 State and local taxes a State and local income taxes or general sales taxes. You may include either income taxes or general sales taxes on line 5a, but not both. If you elect to include general sales taxes instead of income taxes, 3 check this box 5a b State and local real estate taxes (see instructions) c State and local personal property taxes d Add lines 5a through 5c 5b 5c F 5d Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 50 6 Other taxes. List type and amount < Prev 6 Next Required information c State and local personal property taxes 50 d Add lines 5a through 5c 5d Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 50 6 Other taxes. List type and amount 6 7 Interest You Paid Caution: Your mortgage interest deduction may be limited (see 7 Add lines 5e and 6 8 Home mortgage interest and points. If you didn't use all of your home mortgage loan(s) to buy, build, or improve your home, see instructions and check this box a Home mortgage interest and points reported to you on Form 1098. See instructions if limited b Home mortgage interest not reported to you on Form 1098. See instructions if limited. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no., and address instruction). 8a Gifts to Charity Caution: If you made a gift and got a benefit for it, see instructions. Casualty and That I neene 8b c Points not reported to you on Form 1098. See instructions for special rules 8c 8d e Add lines 8a through Bd. 80 9 d Mortgage insurance premiums (see instructions). 9 Investment interest Attach Form 4952 if required. See instructions 10 Add lines Be and 9 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions 11 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 12 13 13 Carryover from prior year 14 Add lines 11 through 13 15 Casualty and theft loss(es) from a federally declared disaster (other than not qualified disaster losses). Attach Form ARRA and enter the amount from line 18 of that form Rea instructions 10 10 14 Required Information 10 Add lines 8e and 9 Gifts to Charity 11 Gifts by cash or check. If you made any gift of $250 or more, see instructions 11 12 Other than by cash or check. If you made any gift of $250 or more, see instructions. You must attach Form 8283 if over $500 12 Caution: If you made a gift and got a benefit for it, see instructions. 13 Carryover from prior year 14 Add lines 11 through 13 Casualty and Theft Losses 13 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See instructions 16 Other-from list in instructions. List type and amount 10 14 15 15 Other Itemized Deductions 16 Total Itemized 17 Add the amounts in the far right column for lines 4 through 16. Also, enter this amount on Form 1040 or 1040-SR, line 12 17 Deductions 18 If you elect to itemize deductions even though they are less than your standard deduction, check this box Schedule A (Form 1040) 2021 For Paperwork Reduction Act Notice, see the Instructions for Forms 1040 and 1040-SR. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL.2022 McGraw-Hill Education. Cat. No. 17145C