Sarah Hamblin and her now ex$-$husband Kevin were legally divorced on March $1,2023.$ As of the end of the year, Sarah was unmarried. Sarah and Kevin had only one child, an $11-$year$-$old girl named Elizabeth. As part of the divorce decree, Sarah was given custody of Elizabeth and Kevin was required to pay $1)$ child support for Elizabeth$$s care, and $2)$ alimony to Sarah until she remarries or dies. Because Kevin will be making child support payments, the divorce decree provided that Kevin will be permitted to claim the child tax credit for Elizabeth until Elizabeth no longer qualifies as a tax dependent of either parent and the decree obligates Sarah to sign and$/$or file any required forms to cause this result to occur.

Sarah rents a home $($separate from Kevin$)$ that she pays for herself. Elizabeth lives with Sarah most of the time, but she visits and stays with her father every other weekend and most holidays. During the year, Elizabeth stayed at Kevin$$s house a total of $74$ nights.

Sarah provided the following information for $2023$:

$$ Sarah$$s Social Security number is $123-43-4321$

$$ Elizabeth$$s Social Security number is $123-34-1234$

$$ Sarah$$s mailing address is $1245$ Rose Petal Drive, Middletown, Wisconsin $53562$

$$ Elizabeth is a U$.$S$.$ citizen.

Gross Wages $34,350,$ Fedral income Tax withholding $6,950,$ state income tax withholdong $2,125$

All applicable and appropriate payroll taxes were withheld by the employer.

During the year, Sarah also received the following:

Child Support Payment from Kevin Hamblin $$12,000$

Alimony Payment from Kevin Hamblin $$16,000$

Gift from her father to help with legal bills $ $8,500$

Interest income on U$.$S$.$ Treasury Bond $ $400$

Interest income of Madison City Bond $($municipal bond$)$ $ $250$

Interest income from First Bank of Madison $ $165$

Life insurance proceeds on the death of her mother $$45,000$

Sarah is a $50\%$ owner in a friend$$s company, Bright Day Flowers, Inc. Bright Day Flowers, Inc. $($BDF$)$ is a Subchapter S corporation. The company reported ordinary business income for the year of $$22,000.$ Sarah acquired the stock several years ago. Sarah worked a total of $600$ hours at the BDF shop in the evenings and on the weekends during $2023.$ Bright Day Flowers, Inc.$$s employer identification number is $56-3535353.$

Sarah entered a contest sponsored by a radio station and won $10$ gift cards to various restaurants. The value of the gift cards was $$200$ each. Sarah gave $5$ of the gift cards away to her coworkers.

Sarah lost her job with Central Wisconsin Heating and Air on November $15$ because of a reduction in work force. She collected $$1,250$ in unemployment benefits during the year. She is currently looking for another job.

Sarah did not own, control, or manage any foreign bank accounts nor was she a grantor or beneficiary of a foreign trust during the tax year. Also, Sarah did not buy, sell, exchange, or otherwise acquire any financial interest in a virtual currency.

$$

Sarah was provided with the following benefits as part of her employment:

$$ Group$-$term life insurance coverage of $$50,000.$ The cost to cover Sarah for the company for the tax year is $$150.$

$$ Access to the company photocopy machine. Sarah estimates she made $$14$ worth of copies during the year primarily for use with her church group activities.

Sarah reported no itemized deductions other than any described above.

Sarah does not want to contribute to the Presidential Election Campaign Fund. She would like to receive a refund $($if any$)$ of any tax she may have over

$$ Form $1040,$ supporting schedules, and instructions to the forms and schedules can be found at the IRS website $($www$.$irs.gov$).$

$$ For purposes of this assignment, unless instructed otherwise, you do not need to attach Form $8582.$

$$ Be sure to include only required tax forms when completing the tax return.

$$ Ignore the requirement to attach the Form$($s$)$ W$-2$ to the front page of the Form $1040$