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Required information 2 0 2 3 Tax Rate Schedules Individuals Schedule X - Single Schedule Y - 1 - Married Filing Jointly or Qualifying surviving

Required information 2023 Tax Rate Schedules
Individuals
Schedule X-Single
Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse Tax Rates for Net Capital Gains and Qualified Dividends
*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose).
[The following information applies to the questions displayed below.]
During 2023, your clients, Mr. and Mrs. Howell, owned the following investment assets:
"No commissions are charged when no-load mutual funds are bought and sold.
Because of the downturn in the stock market, Mr. and Mrs. Howell decided to sell most of their stocks and the mutual fund
in 2023 and to reinvest in municipal bonds. The following investment assets were sold in 2023:
"No commissions are charged when no-load mutual funds are bought and sold.
The Howells' broker issued them a Form 1099-B showing the sales proceeds net of the commissions paid. For example,
the IBM sales proceeds were reported as $14,300 on the Form 1099-B they received.
In addition to the sales reflected in the table above, the Howells provided you with the following additional information
concerning 2023:
The Howells received a Form 1099-B from the Vanguard mutual fund reporting a $900 long-term capital gain
distribution. This distribution was reinvested in 31 additional Vanguard mutual fund shares on 6/30/2023.
In 2017, Mrs. Howell loaned $6,700 to a friend who was starting a new multilevel marketing company called LD3. The
friend declared bankruptcy in 2023, and Mrs. Howell has been notified she will not be receiving any repayment of the
loan.
The Howells have a $3,000 short-term capital loss carryover and a $5,500 long-term capital loss carryover from prior
years.
The Howells did not instruct their broker to sell any particular lot of IBM stock.
The Howells earned $3,350 in municipal bond interest, $3,350 in interest from corporate bonds, and $4,700 in qualified
dividends.
Assume the Howells have $147,500 of wage income during the year.
a-3. Compute the Howells' tax liability for the year (ignoring the alternative minimum tax and any phase-out provisions) assuming they
file a joint return, they have no dependents, they don't make any special tax elections, and their itemized deductions total $30,000.
(Use the tax rate schedules. Dividends and Capital Gains Tax Rates.)
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