SCHEDULE SE {Form 1040) OMB No. 1545-00?4 222 Attachment Sequence No. 'I 7 Self-Employment Tax Go to www.irs.gow'ScheduieSE for instructions and the latest information. Attach to Form 1040, 1040-SR, or 1040-NR. Name of person with self-employment income (as shown on Form 1040, 1040-SR, or 1040-NFi) Department of the Treasury Internal Revenue Service Social security number of person with self-employment income Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income. A If you are a minister. member of a religious order, or Christian Science practitioner and you filed Form 4361, but you had $400 or more 01 other net earnings from self-employment, check here and continue with Part I . . . . . . . . . D Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions. 13 Net farm profit or (loss) from Schedule F, line 34, and tarm partnerships, Schedule K1 (Form 1065), box14,codeA.............................1a b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH 1b ( 1 Skip line2 if you use the nonfarm optional method in Part II. See instructions. 2 Net profit or (loss) from Schedule 0, line 31; and Schedule K-t (Form 1065], box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 2 3 Combinelines 1a, 1b, and2. . . . . . . . . . . . . 3 4a If line 3 is more than zero, multiply line 3 by 92. 35% (0.9235). Otherwise enter amount from line 3 . 4a Note: It line 4a' Is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods. enter the total of lines 15 and 17 here . . . . . 4b 6 Combine lines 4a and 4b. If less than $400, stop; you don't owe selfemployment tax. Exception: It less than $400 and you had church employee income, enter -0- and continue . . . . . . . . 4c 58 Enter your church employee income from Form W-2. See instructions for definition of church employee income . . . . . . . 53 b Multiply line So by 92.35% (0 9235) If less than $100, enter 0-- . . . . . . . . . . . . . 5b 6Addlines4cand5b...........................6 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1)tax for 2022 . . . . . . . . . . . 7 147.000 8a Total social security wages and tips (total of boxes 3 and 7 on Formts) W-2} and railroad retirement (tier 1) compensation. If $147,000 or more, skip lines 8bthrough10,andgotoline11 . . . . . . . . . . . . . . . 8a b Unrepor'ted tips subject to social security tax from Form 4137, line 10 . . . m c Wages subject to social security tax from Form 8919, line 10 . . . . . . m d Addlinesaaabandac. . .. ... . . . .. . . . . . . . . .. 8d 9 Subtract line 8d from line 7. If zero or less, enter 0-- here and on line 10 and go to line 11 . . . . 9 10 Multiplythe smaller 01 line 6 or line 9 by 12.4% [0.124) . . . . . . . . . . . . . . . . 10 11 Multiply line 6 by2. 9% (0. 029). . . . . . 11 12 Self- -employment tax. Add lines 10 and 11. Enter here and on schedule 2 (Form 1040), line 4 . . 12 13 Deduction for one- -half of self-employment tax. Multiply line 12 by 50% {0.50). Enter here and on Schedule 1 [Form 1040], line 15 . . _ 13 Part II Optional Methods To Figure Net Earnings {see instructions} Farm Optional Method. You may use this method only if {a} your gross farm income1 wasn't more than $9,060. or (b) your net tarm profits2 were less than $6,540. 14 Maximumincomeforoptional methods. . . . . . . . . . . . . . . . . . . . . 14 6,040 15 Enter the smaller of; two-thirds (2/3) 01 gross farm income' {not less than zero) or $6,040. Also, include this amount on line 4b above Nonfarm Optional Method. You may use this method only if (a) your net nonfarm protsawere less than $6,540 and also less than 72.189% of your gross nonfarm income.\" and (b) you had net earnings from self-employment of at least $400 in 2 of the prior 3 years. Caution: You may use this method no more than five times. 16 Subtract line 15 from line 14. 17 Enter the smaller of: two~thirds (9/3} 01 gross nonfarm income'1 (not less than zero} orthe amount on line 16. Also. include this amount on line 4b above . . . . 17 ' From Sch. F. line 9: and Sch. K71 (Form 1055], box 14. code El. 3 From Sch. 0. line 31: and Sch. K 1 (Form 1055), box 14, code A. 2 From Sch. F, line 34; and Sch. K1 (Form 1065), box 14, code Aminus the amount " From Sch. C, line 7; and Sch K 1 (Form 1065), box 14, code 6. you would have entered on line 1b had you not used the optional method. For Paperwork Reduction Act Notice. see your tax retum instructions. Cat. No. 113582 Schedule SE (Form 1040) 2022 ACCY 171 Tax Return Project Part I Summary Form Name: Question Your Answer Schedule A List the specic items included in line 5a. What is the amount on line 5d? What is the maximum annual deduction amount allowed for state and local taxes? Among the interests paid by Humphreys, what interest expenses are not deductible? List the specic items included in line 11. What did you get on line 17? What does it imply regarding the amount of deductions from AGI for Humphreys? (i.e., are they going to choose to deduct the standard deduction or itemized deductions?) Schedule B (I will complete this for you in the tax return class , you just need to answer this following question.) Out of the amount on line 6, how much is qualied dividends? Schedule SE On which form did you nd Claire's self- employment income amount? What is the amount reported on line 86.? Line 13 is this a deduction for AG]? Or a deduction from AGI? ACCY 171 Federal Tax Procedures I Dr. Daun Jang Tax Return Project - Part I (Due March 6th) Required: . Using the information provided, prepare the 2022 federal tax return for Phillip and Claire Humphrey. If required information is missing, use reasonable assumptions to fill in the gaps. The forms that need to be turned in for Part I are as follows: o Schedule A o Schedule SE for Claire (You only need to complete Part I of Schedule SE - don't worry about part II in Schedule SE.) You also need to submit the summary form, which is available in Canvas. The return should be prepared manually. You are not allowed to use a return software. The tax forms from the IRS allow typing, so you can complete the forms using typing. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). (The forms and schedules are also available in Canvas.) The instructions for each form will be helpful in completing the return. Facts: Phillip and Claire Humphrey are married and file a joint return. Phillip is a civil engineer and runs his own engineering firm called Phillip Humphrey Engineering, which is conducted as a sole proprietorship with Phillip being the sole owner, and Claire is a flight attendant. Phillip and Claire have two dependent children, Haley and Luke, who live at home with Phillip and Claire. The Humphreys provide you with the following additional information: The Humphreys do not want to contribute to the presidential election campaign. The Humphreys would like to receive a refund (if any) of tax they may have overpaid for the year. Their preferred method of receiving the refund is by check. The Humphreys live at 3800 Brighton Avenue, Lincoln, Nebraska 68510. Phillip's birthday is 11/5/1974 and his social security number is 321-11-5700. Claire's birthday is 5/12/1977 and her social security number is 567-11-1268. Haley's birthday is 2/1/2010 and her social security number is 621-11-7592. Luke's birthday is 12/12/2013 and his social security number is 621-11-9935. The Humphreys do not have any foreign bank account or trusts. During 2022, the Humphreys did not receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency. 1) Claire is a flight attendant for Midwest American Airlines (MAA), where she earned $57,000 in salary. MAA withheld federal income tax of $6,375, state income tax of $1,800, Social Security tax of $3,534, and Medicare tax of $827. 1 2) The Humphreys received the following during the year: Interest income from Bank of America $300 Interest income from the City of Denver bonds $170 Interest income from U.S. Treasury Bond $120 Qualified dividend income from Target Corp. $300 Qualified dividend income from CVS Health Corp. $620 Qualified dividend income from Microsoft $210SCHEDULE A Itemized Deductions OMB No. 1545-0074 Form 1040) Go to www.irs.gov/ScheduleA for instructions and the latest information. 2022 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Caution: If you are claiming a net qualified disaster loss on Form 4684, see the instructions for line 16. Sequence No. 07 Name(s) shown on Form 1040 or 1040-SR Your social security number Medical Caution: Do not include expenses reimbursed or paid by others. Ind 1 Medical and dental expenses (see instructions) 1 Dental 2 Enter amount from Form 1040 or 1040-SR, line 11 2 Expenses Multiply line 2 by 7.5% (0.075) . . 3 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0- Taxes You 5 State and local taxes. Paid 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, check this box . 5a b State and local real estate taxes (see instructions) . 5b c State and local personal property taxes 5c d Add lines 5a through 5c . 5d e Enter the smaller of line 5d or $10,000 ($5,000 if married filing separately) 5e 6 Other taxes. List type and amount: 6 7 Add lines 5e and 6. 7 Interest 8 Home mortgage interest and points. If you didn't use all of your home You Paid mortgage loan(s) to buy, build, or improve your home, see Caution: Your Instructions and check this box mortgage interest deduction may be a Home mortgage interest and points reported to you on Form 1098. limited. See See instructions if limited 8a instructions. 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 . 8b c Points not reported to you on Form 1098. See instructions for special rules 8c d Reserved for future use 8d e Add lines 8a through 8c . 8e 9 Investment interest. Attach Form 4952 if required. See instructions . 9 10 Add lines 8e and 9. 10 Gifts to 11 Gifts by cash or check. If you made any gift of $250 or more, see Charity instructions . 11 Caution: If you 12 Other than by cash or check. If you made any gift of $250 or more, made a gift and got a benefit for it see instructions. You must attach Form 8283 if over $500. 12 see instructions. 13 Carryover from prior year 13 14 Add lines 11 through 13 14 Casualty and 15 Casualty and theft loss(es) from a federally declared disaster (other than net qualified Theft Losses disaster losses). Attach Form 4684 and enter the amount from line 18 of that form. See nstructions 15 Other 16 Other-from list in instructions. List type and amount: Itemized Deductions 16 Total 7 amounts in the far right column for lines 4 through 16. Also, enter this amount on Itemized 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 . For Paperwork Reduction Act Notice, see the Instructions for Form 1040. Cat. No. 17145C Schedule A (Form 1040) 20222) 3) 4) 5) 5) The Humphreys received the following during the year: Interest income from Bank of America $300 Interest income from the City of Denver bonds $170 Interest income from US. Treasury Bond 5120 Qualified dividend income from Target Corp. 5300 Qualified dividend income from CVS Health Corp. $620 Qualified dividend income from Microsoft $210 *ln our tax return class, i will show you how to complete Schedule B (lnterest and Dividends) using this information. The Humphreys filed their 2021 federal and state tax returns on April 2, 2022. They paid the following additional 2021 taxes with their returns: Federal income taxes of $300 and state income taxes of $380. The Humphreys made timely estimated federal income tax payments of $6,100 each quarter during 2022. They also made estimated state income taxes of $2,000 each quarter. The Halls made the federal and state fourth quarter estimated tax payments on December 31, 2022. Claire received a 2022 K-1 from the Dunphy Partnership interest she purchased two years ago. Claire materially participates in the partnership. A copy ofthe K-l can be found in Canvas. The Humphreys have also provided the following information for 2021: Real estate taxes on personal residence State income taxes You need to determine this amount Mortgage interest on principal residence mortgage of $320,000 {Reported on Form 1098) Home equity interest on $30,000 mortgage used to purchase 580 new car Interest on credit cards {vacation and consumer purchases) Cash contribution to American Cancer Society {qualified 10,000 charitable organization) Cash contribution to a museum (qualified charitable 5,000 organization} Unreimbursed employee business expenses (Claire) Description Submit the following: . Schedule A Schedule SE for Claire . Summary form Once you submit the forms, make sure the tax forms submitted are actually filled out - I had incidences of receiving blank forms before.2022 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable of the if taxable of the income is: But not amount income is: But not amount Over- over The tax is: over- Over- over The tax is: over S $ 10,275 .........10% S S 0 $ 14,650 ........:10% 10,275 41,775 $ 1,027.50 + 12% 10,275 14,650 55,900 $ 1,465.00 + 12% 14,650 41,775 89,075 4,807.50 + 22% 41,775 55,900 89,050 6,415.00 + 22% $5,900 89.075 170,050 15,213.50 + 24% 89,075 89.050 170,050 13,708.00 + 24% 89,050 170,050 215,950 34,647.50 + 32% 170,050 170,050 215,950 33,148.00 + 32% 170,050 215,950 539,900 49,335.50 + 35% 215,950 215,950 539,900 47,836.00 + 35% 215,950 539,900 162,718.00 + 37% 539,900 539.900 161,218.50 + 37% 539,900 Married filing jointly or Qualifying widow(er)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable of the income is: But not amount Income is: But not amount Over- over- The tax is: over- Over- over- The tax is: over- S 0 $ 20,550 . ........10% S S $ 10,275 ......... 10% 20.550 83,550 $ 2,055.00 + 12% 20,550 10.275 41,775 $ 1,027.50 + 12% 10,275 83,550 178,150 9,615.00 + 22% 83,550 41,775 89,075 4,807.50 + 22% 41,775 178,150 340,100 30,427.00 + 24% 178,150 89.075 170,050 15,213.50 + 24% 89,075 340,100 431,900 69,295.00 + 32% 340,100 170,050 215,950 34,647.50 + 32% 170,050 431,900 647,850 98,671.00 + 35% 431,900 215,950 323,925 49,335.50 + 35% 215,950 647,850 174,253.50 + 37% 647,850 323.925 87,126.75 + 37% 323,925