Susan Black, Social Security No. 314-07-9204, showed net earnings of $45,000 on her Schedule C from her tax preparation business that she operated during the tax filing season. She also works at a full time job and her W-2 form showed wages of $60,000 with $3,720 withheld for Social Security and $870 withheld for Medicare. REQUIRED: Complete the attached Schedule SE for Form 1040, in the proper form, for Susan Black to compute her self employment taxes due for 2023. ana amon ae ond Bradley White, Social Security No. 095-46-2201, has two college age children, Clint, Social Security No. 452-69-0027, a freshman at State University, and Abigail, Social Security No. 131-05-9872, a junior at Northwest University. State University, whose EIN (Employer Identification Number) is 10-6539802, is located at 2433 Academic Boulevard, Frankburg, OH, Zip Code 21356. Northwest University, whose EIN is 11-7291164, is located at 300 Northwest Avenue, Cloudsville, OH, Zip Code 26589. Both Clint and Abigail are full time students. Bradley is married, files a joint tax return, claims both children as dependents, and has a combined AGI with his wife, Julia, of $97,000 for 2020. The couple have a total tax liability before any tax credits of $12,000 and they have no other potential tax credits other than the education credit. The expenses related to education for Clint and Abigail for tax year 2023 are listed below. Tuition and the applicable room and board costs are paid at the beginning of each semester. to determine their available education tax credit for 2023 . 8863 Education Credits (American Opportunity and Lifetime Learning Credits) Doostment of the Treasury Attach to Form 1040 or 1040-sA. intemal Revenue Service Niste(s) shown on retum Go to mmw irs,gov/Formseds for instructions and the Intest information. ove No. ists-oor4 Your social security number CAUTON Complete a separate Part III on page 2 for each student for whom you're claiming either credit before you complete Parts I and II. Part II Nonrefundable Education Credits 9 Subtract line 8 from line 7. Enter here and on line 2 of the Credit Limit Worksheet (see instructions) 10 After completing Part III for each student, enter the total of all amounts from all Parts III, line 31. If zero, skip lines 11 through 17 , enter -0 - on line 18 , and go to line 19 11 Enter the smaller of line 10 or $10,000 12 Multiply line 11 by 20%(0.20) 13 Enter: $180,000 if married filing jointly; $90,000 if single, head of household, or qualifying surviving spouse 14 Enter the amount from Form 1040 or 104088, ind 11, But if you're filing Form 2555 or 4563 , or you're excluding income froin Puth' Pico, see Pub. 970 for the amount to enter instead . 15 Subtract line 14 from line 13 . If zero or less, 3 t p inhes 15 and 17 , enter -0 - on line 18 , and go to line 19 16 Enter: $20,000 if married filing jointly, $10,000 if single, head of household, or qualifying surviving spouse \begin{tabular}{|l|l|} \hline 13 & \\ \hline 14 & \\ \hline 15 & \\ \hline 16 & \\ \hline \end{tabular} 17 If line 15 is: - Equal to or more than line 16 , enter 1.000 on line 17 and go to line 18 - Less than line 16, divide line 15 by line 16. Enter the result as a decimal (rounded to at least three places) 18 Multiply line 12 by line 17. Enter here and on line 1 of the Credit Limit Worksheet (see instructions) 19 Nonrefundable education credits. Enter the amount from line 7 of the Credit Limit Worksheet (see instructions) here and on Schedule 3 (Form 1040), line 3 \begin{tabular}{|l|l} \hline 9 & \\ \hline 10 & \\ \hline 11 & \\ \hline 12 & \\ \hline & \\ & \\ & \\ \hline 17 & \\ \hline 18 & \\ \hline 19 & \\ \hline \end{tabular} For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No, 25379M Form 8863(2022) Fon kas mogn Complote Part III for each student for whom you're claiming either the American opportunity credit or lifetime loaming credit. Use additional copies of page 2 as needed for each student. Part III Student and Educational Institution Information, See instructions. \begin{tabular}{|l|l|l|l|} \hline 20 Student name (as shown on page 1 of your tax return) & 21 & \begin{tabular}{l} Student social security number (as shown on page 1 of \\ your tax return) \end{tabular} \\ \hline 22 & & \end{tabular} 22 Educational institution information (see instructions) a, Name of first educational institution (1) Address, Number and street (or P.O. box). City, town or post office, state, and ZIP code. If a foreign address, see instructions. b. Name of second educational institution (ff any) (1) Address, Number and street (or P.O. box), C.ty, fown or post office, state, and ZIP code. If a foreign address, seo instructions. (2) Did the student receive Form 1093-T from this institution for 2022 ? Yes No (3) Did the student receive Form 1098-T from this institution for 2021 with box Yes No 7 checked? (4) Enter the institution's employer identfication number (EIN) if you're claiming the American opportunity credit or if you checked "Yes" in (2) or (3). You can get the EIN from Form 1098-T or from the institution. (2) Did the student recelve Form 1098-T from this institution for 2022 ? Yes No (3) Did the student receive Form 1096-T from this institution for 2021 with box Yes No 7 checked? (4) Enter the institution's employer identification number (ENV) if you're claiming the American opportunity credit or if you checked "Yes" in (2) or (3), You can get the ElN from Form 1098 -T or from the institution. 23 Has the American opportunity credit been claimed for this student for any 4 prior tax years? 24 Was the student enrolled at least hauf-time for at least one academic period that began or is treated as having begun in 2022 at an eligible educational institution in a program leading towards a postsecondary degree, certificate, or other recognized postsecondary educational credential? See instructions. 25 Did the student complete the first 4 years of postsecondary education before 2022 ? See instructions. 26 Was the student convicted, before the end of 2022, of a felony for possession or distribution of a controlled substance? Yes - Stop! Go to line 31 for this student. Yes - Go to line 25. Yes - stop! Go to line 31 for this student. Yes - Stop! Go to line 31 for this student. No - Stopl Go to line 31 for this student. You can't take the American opportunity credit and the ffetime learning credit for the same student in the same year. If you complete lines 27 through 30 for this student, don't complete line 31 . American Opportunity Credit 27 Adjusted qualified education expenses (see instructions). Don't enter more than $4,000. 28 Subtract $2,000 from line 27 . If zero or less, enter -0 - 29 Multiply line 28 by 25%(0.25) 30 If line 28 is zero, enter the amount from line 27 . Otherwise, add $2,000 to the amount on line 29 and enter the result. Skip line 31. Include the total of all amounts from all Parts II, line 30, on Part 1, line 1. No - Go to line 28. Lifetime Learning Credit 31 Adjusted qualified education expenses (see instructions). Include the total of all amounts from all Parts III, line 31. on Part II, line 10. \begin{tabular}{|c|c|} \hline 27 & 1= \\ \hline 28 & \\ \hline 29 & \\ \hline 30 & \\ \hline 31 & \\ \hline \end{tabular} No - Complate lines 27 through 30 for this student. Russell Green, Social Security No. 468-03-1100, started a small appliance repair service that he operates (Business Code 811490 ) by himself called Green's Appliance Repair, located at 2465 Major Avenue, Washington Heights, FL 33682. The following information is available about revenues and expenses incurred in the business. Russell also purchased $30,000 of tools and equipment for the business on January 15 . He also used his truck, the only vehicle he owns, for deliveries and picking up parts and supplies for the business. He drove a total of 13,000 miles during the year, of which 4,000 miles were for picking up parts and supplies, 3,500 were for driving back and forth from his home to the shop, and the remainder were for personal purposes. Russell chooses not to keep track of his actual expenses for the vehicle but he does maintain a log of mileage that he drives for deliveries and other business related items. REQUIRED: Complete the attached Schedule C and Form 4562, in proper form, for Russell Green that will be needed to file his personal tax return for 2023. Russell wants to minimize his income for tax purposes by using the tax laws to his best advantage. Part I Income 1 Cross receipts or sales. See instructions for line 1 and check the bex if this income was reported to yeucen Ferm W-2 and the "Statutory ecnployee" bex on that form was checked 2 Retums and allowances 3 Subtract line 2 from line 1 4 Cost of goods sold flrom ine 42) 5 Gross profit. Subtract line 4 from line 3 6 Other income, including fedoral and state gascline or fuel tax credt or refund see instructiond? 7 Gross income, Add lines 5 and 6 Part II Expenses. Enter exponses for business use of your home only on line 30. \begin{tabular}{|c|c|c|c|} \hline 8 & Advertising . .... & b & \\ \hline 9 & \begin{tabular}{l} Car and truck expenses \\ (see instructions) \end{tabular} & 2 & \\ \hline 10 & Commissions and fees ... & 10 & \\ \hline 11 & Centract iabor (see instructiona) & 11 & \\ \hline 12 & & 12 & \\ \hline 13 & \begin{tabular}{l} Depreciation and section 17e \\ expense deduction fnot \\ included in Part ili) (see \\ instructions) \end{tabular} & 13 & \\ \hline 14 & \begin{tabular}{l} Employee benefit programs \\ (other than on line 19) \end{tabular} & 14 & \\ \hline 15 & Insurance (other than heath) & 15 & \\ \hline 16 & Interest (see instructions): & & \\ \hline a & Mortgage (paid to banks, eto) & 16a & \\ \hline b & Other ........ & 16b & \\ \hline 17 & Legal and protessional services. & 17 & \\ \hline \end{tabular} 18 19 20 a Vehicles, machinery, and tajpeners b Other business preperty 21 Repairs and maimsenance 22 Supples fnot included in Part in) 23 Taxes and licenses - 24. Travel and meals: a Travel: b Doductible meals (see instructions) 25 Usintes ............ 25 26 Wages (less employment ereden) 27 a Other expenses from ine 48 . b Energy efficient commercial bidgs deduction (attach Form 7205). 270 \begin{tabular}{|l|l} \hline 1 & \\ \hline 2 & \\ \hline 3 & \\ \hline 4 & \\ \hline 5 & \\ \hline 6 & \\ \hline 7 & \\ \hline \end{tabular} Otfice exptese (see instructions) Pensich and prefla-shaing plant Plent or loase (see instructionst: 31 Total expenses before expenses for business use of home. Add lines 8 through 270 Tentative profit or (loss). Subtract ine 28 from ine 7 . Expenses for business use of your home. Do not report these expenses elsewhere. Amach form 8829 unless using the simplified method. See instructions. Simplified methed filers only: Enter the total square footage of (a) your home: and (b) the part of your home used for business: Use the Simplifed Method Worksheet in the instructions to figure the amount to enter on line 30 Net profit or (loss). Subtract ine 30 trom line 29. - If a protit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. 0f you checked the box on line 1, see instructions.) Estates and trusts, enter on Form 1041, line 3. - If a loss, you must go to line 32 . 32 If you have a loss, check the box that describes your investment in this activity. See instructions. - If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. of you checked the box on fine 1, see the line 31 instructions) Estates and truts, enter on Form 1041, line 3. - If you checked 32b, you must aftach Form 6198. Your loss may be limited. 32a Al investment is at risk 3ab Some imvestrnent is not at risk. For Paperwork Reduction Act Notice, see the separate instructions. Cat, No. 11334? Part IV Information on Your Vehicle, Complete this part only if you are claiming car or truck expenses on line 9 and are not required to file Form 4562 for this business. See the instructions for line 13 to find out if you must file Form 4562 . 4562 Depreciation and Amortization (Including Information on Listed Property) Deositeent of the Treorun Attach to your tax reburm. Attach to your tax teburn. 22 Nimelsi thown on reflum Ge to unw.in goviFormeser for instructions and the latest infermation. identifyeg number Part] Election To Expense Certain Property Under Section 179 Note: If you have any listed property, complete Part V before you complete Part 1 1 Maximum arnount (see instructions), 2 Total cost of soction 179 property placed in service isee instructions) 3 Threshold cost of section 179 property before reduction in limitation (see instructions) 4 Reduction in limitation. Subtract line 3 from line 2 . If zero or less, enter -0 . 5 Dollar limitation for tax year, Subtract line 4 from ine 1, If zero or less, enter - 0 - If maried filing separately, see instructions 6 (a) Onecriction of propenty Al Cost bivinens unt onin Ast rectis cont \begin{tabular}{|l|} \hline 1 \\ \hline 2 \\ \hline 3 \\ \hline 4 \\ \hline 5 \\ \hline \\ \hline \end{tabular} 7 Listed property. Enter the amount from line 29 7 8 Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 9 Tentative deduction. Enter the smaller of line 5 or line 8 10 Carryover of disallowed deduction from line 13 of your 2021 Form 4562 . 11 Business income limitation. Enter the smalier of business income (not less than zero) or line 5, 5ee instructions 12 Section 179 expense deduction. Add lines 9 and 10, but don't enter more than line 11 13 Carryover of disallowed deduction to 2023. Add lines 9 and 10, less Ine 1213 \begin{tabular}{|c|c} \hline 8 & \\ \hline 9 & \\ \hline 10 & \\ \hline 11 & \\ \hline 12 & \\ \hline \end{tabular} Note: Don't use Part II or Part III below for listed property. Instead, use Part V. Part III MACRS Depreciation (Don't include isted property. See instructions.) Section A. 17 MACRS deductions for assets placed in service in tax years beginning belore 2 ca22 18 If you are electing to group any assets placed in service during the tax year into one or more general asset accounts, check here Section C-Assets Placed in Service During 2022 Tax Year Using the Alternative Depreciation System Part IV Summary (See instructions.) 21 Listed property. Enter amount from line 28 22 Total. Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Entes here and on the appropriate lines of your return. Partnerships and S corporations - see instructions. 21 23 For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs. 23 22 For Paperwork Reduction Act Notice, see separate instructions. Cat. Na. 12906N Form 4562 ac24 Part V Listed Property (Include automobiles, certain other vehicles, certain aircraft, and property used for ontertainment, recreation, or amusement.) Note: For any vehiclo for which you are using the standard mileage rate or deducting lease expense, complete only 243. 24b, columns (A) through (c) of Section A, all of Section B, and Section C if applicabio. Section A-Depreciation and Other Information (Caution: See the instructions for limits for passenger automobiles)