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Shanice Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shanice wanted to determine her taxable income for this year.

Shanice Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shanice wanted to determine her taxable income for this year. She correctly calculated her AGI. However, she wasn't sure how to compute the rest of her taxable income. She provided the following information with hopes that she could use it to determine her taxable income for 2023.

a) Shanice paid $4,680 for medical expenses for care from a broken ankle in October. Also, Shanice 's boyfriend, Blake, drove Shanice (in her car) a total of 115 miles to the doctor's office so she could receive care for her broken ankle.

b) Shanice paid a total of $3,400 in health insurance premiums during the year (not through an exchange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shanice had Lasik eye surgery last year and paid $3,000 for the surgery (she received no insurance reimbursement). She also incurred $450 or other medical expenses for the year.

c) SD withheld $1,800 of state income tax, $7,495 of Social Security tax, and $14,500 of federal income tax from Shanice's paychecks throughout the year.

d) In 2023, Shanice was due a refund of $250 for overpaying her 2022 state taxes. On her 2022 state tax return that she filed in April 2023, she applied the overpayment toward her 2023 state tax liability. She estimated that her state tax liability for 2023 will be $2,300.

e) Shanice paid $3,200 of property taxes on her personal residence. She also paid $500 to the developer of her subdivision because he had to replace the sidewalk in certain areas of the subdivision.

f) Shanice paid a $200 property tax based on the state's estimate of the value of her car.

g) Shanice has a home mortgage loan in the amount of $220,000 that she secured when she purchased her home. The home is worth about $400,000. Shanice paid interest of $12,300 on the loan this year.

h) Shanice made several charitable contributions throughout the year. She contributed stock in ZYX Corp. to the Red Cross. On the date of the contribution, the fair market value of the donated shares was $l,000 and her basis in the shares was $400. Shanice originally bought the ZYX Corp. stock in 2009. Shanice also contributed $300 cash to State University and religious artifacts she bas held for several years to her church. The artifacts were valued at $500 and Shanice's basis in the items was $300. Shanice had every reason to believe the church would keep them on display indefinitely. She also drove 200 miles doing church related errands for her minister. Finally, Shanice contributed $1,200 of services to her church last year.

i) Shanice paid $250 in investment advisory fees and another $150 to have her tax return prepared (that is, she paid $150 in 2023 to have her 2022 tax return prepared).

j) Shanice is involved in horse racing as a hobby. During the year, she won $2,500 in prize money and incurred $l0,000 in expenses. She had never had a profitable year with her horse racing activities, so she acknowledges that this is a hobby for federal income tax purposes.

k) Shanice sustained $2,000 in gambling losses over the year (mostly horse racing bets) and had only $200 in winnings.

Required:

a) Determine Shanice's taxable income and complete page 1 of Form 1040 (through taxable income, line 15) and Schedule A assuming her AGI is $107,000.

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