Tax Computation Problem

Paul and Donna Decker are married taxpayers, ages $44$ and $42,$ respectively, who file a joint return for $2023.$ The Deckers live at $1121$ College Avenue, Carmel, IN $46032.$ Paul is an assistant manager at Carmel Motor Inn, and Donna is a teacher at Carmel Elementary School. They present you with W$2$ forms that reflect the following information:

$$Paul Donna$$

Salary $$68,000$ $$56,000$

Federal tax withheld $5,7705,630$

State income tax withheld $1,4001,100$

FICA $($Social Security and Medicare$)$ withheld $5,2024,284$

Social Security numbers $111-11-1112123-45-6789$

Donna is the custodial parent of two children from a previous marriage who reside with the Deckers throughout the school year. The children, Larry and Jane Parker, reside with their father, Bob, during the summer. Relevant information for the children follows:

$$ Larry $$ Jane $$

Age $1618$

Social Security numbers $123-45-6788123-45-6787$

Months spent with Deckers $99$

Under the divorce decree, Bob pays child support of $$150$ per month per child during the nine months the children live with the Deckers. Bob says that he spends $$200$ per month per child during the three summer months they reside with him. Donna and Paul can document that they provide $$2,000$ support per child per year. The divorce decree is silent as to which parent can claim the exemptions for the children.

In August, Paul and Donna added a suite to their home to provide more comfortable accommodations for Hannah Snyder $(123-45-6786),$ Donna$$s mother, who had moved in with them in February $2022$ after the death of Donna$$s father. Not wanting to borrow money for this addition, Paul sold $300$ shares of Acme Corporation stock for $$50$ per share on May $3,2023,$ and used the proceeds of $$15,000$ to cover construction costs. The Deckers had purchased the stock on April $29,2018,$ for $$25$ per share. They received dividends of $$750$ on the jointly owned stock a month before the sale.

Hannah, who is $66$ years old, received $$7,500$ in Social Security benefits during the year, of which she gave the Deckers $$2,000$ to use toward household expenses and deposited the remainder in her personal savings account. The Deckers determine that they have spent $$2,500$ of their own money for food, clothing, medical expenses, and other items for Hannah. They do not know what the rental value of Hannah$$s suite would be$,$ but they estimate it would be at least $$300$ per month.

Interest paid during the year included the following:

Home mortgage interest $($paid to Carmel Federal Savings & Loan$)$ $$7,890$

Interest on an automobile loan $($paid to Carmel National Bank$)1,660$

Interest on Citibank Visa card $620$

In July, Paul hit a submerged rock while boating. Fortunately, he was uninjured after being thrown from the boat and landing in deep water. However, the boat, which was uninsured, was destroyed. Paul had paid $$25,000$ for the boat in June $2022,$ and its value was appraised at $$18,000$ on the date of the accident.

The Deckers paid doctor and hospital bills of $$12,700$ and were reimbursed $$2,000$ by their insurance company. They spent $$640$ for prescription drugs and medicines and $$5,904$ for premiums on their health insurance policy. They have filed additional claims of $$1,200$ with their insurance company and have been told they will receive payment for that amount in January $2024.$ Included in the amounts paid for doctor and hospital bills were payments of $$380$ for Hannah and $$850$ for the children.

Additional information of potential tax consequence follows:

Real estate taxes paid $$6,850$

Sales taxes paid $($per table$)1,379$

Contributions to church $4,600$

Appraised value of books donated to public library $740$

Refund of state income tax for $2022($the Deckers itemized on their $2022$ Federal tax return, their total state and local taxes were less than $$10,000,$ and their total itemized deductions exceeded their standard deduction by $$5,400)1,520$

Compute net tax payable or refund due for the Deckers for $2023.$

PLEASE use $20231040$ form,Schedule $8812,$Schdule A$,$ Schdule B$,$ Schedule $1,$ Schdule D and Schdule C