The following information should be considered in preparing the tax return.

You have been employed to complete the 2022 federal income tax return for Jennifer Nguyen. She has adequate written documentation to substantiate all transactions.

Jennifer Nguyen is divorced. She was born on April 22, 1976, and lives at 1505 Mockingbird Lane, Baton Rouge, LA 70465. Her Social Security Number is 480-55-4830.

Jennifer has a child, Amanda Cao, who resides with Jennifer. Amandas social security number is 290-22-3333. Amanda was born on July 5, 2019. Jennifer was divorced on January 1, 2017. Jenifers home phone number is 605-222-3333. Jennifer does not want to contribute $3 to the Presidential Election Campaign Fund.

Jennifers uncle, George Nguyen, lived with Jennifer until his death on January 21, 2022. Georges only income was $5,000 from Social Security. Jennifer paid more than 50% of his support. Georges Social Security number was 123-33-4444. Georges birthday is February 15, 1955.

Jennifer is employed by the Highway Department of the State of Louisiana in an executive position. The employers federal identification number is 33-7777777. The employers address is 600 First Street, Baton Rouge, LA 70464. The following information is shown on her Wage and Tax Statement (Form W-2) for 2022.

In addition to her salary, Jennifers employer provides her with the following fringe benefits:

a. Group term life insurance with a face value of $40,000. The cost of the premiums for the employer was $500. The Highway Department provides term life insurance policies for all full-time employees.

b. Group health insurance plan Jennifers employer paid premiums of $7,500 for her and her daughters medical insurance coverage. The plan paid $6,000 in medical expenses for her and her daughter during the year.

Jennifer earned $9,000 from a consulting assignment. This amount is recorded under Business Income portion of the Income section under gross receipts or sales. Her business category is computer systems design. The principal business code is 541510. Her basis for accounting is cash. The payer was WXY Corporation whose payors federal identification number is 33-8888888. It is located at 333 Main Street, Baton Rouge, LA 70465. When required to file form(s) 1099, she will. Since Jennifer is a sole proprietor, the information from her sole proprietorship shows up on a Schedule C. She received a 1099-NEC form from WXY Corporation. The revenue from the consulting assignment shows up under the Business Income portion of the Income Section.

On July 25, 2022, Jennifer sold 400 shares of BBB common stock for its market value of $90,000. Jennifer had purchased the shares for $80,000 on June 2, 2020. Her brokerage firm provided her with IRS Form 1099-B that properly reported the nature of her gain and its correct basis. Fill out Dispositions, Schedule D/4797/etc portion of Income Section.

Other sources of income for Jennifer were as follows:

Ordinary Dividend income BBB Corporation (only $6,000 qualified dividends) $8,000 Interest income Ajax Bank 4,000 City of Lafayette, LA water bonds (municipal bond) 1,000 Ajax Bank reported the interest income on a Form 1099-INT in Box 1. The interest from the City of Lafayette water bonds is only reported in Box 8 on Form 1099-INT since it is from municipal bond interest which is tax exempt. This interest is also exempt from State of Louisiana income taxes, so Jennifer reports it as in-state municipal bond interest. Jennifer also received a Form 1099-DIV from BBB Corporation. The ordinary dividends of $8,000 are reported in Box 1a, and the qualified dividends of $6,000 are reported in Box 1b. Jennifer has no foreign bank accounts or trusts. Report dividends in Dividend portion of Income Section and report interest income in Interest Income portion of Income Section.

Potential itemized deductions for Jennifer, in addition to items already mentioned, were as follows:

Property taxes paid on her residence - Short Mortgage Co. - Form 1098 $6,000 Charitable contributions - cash to United Church 3,000 Mortgage interest on her residence - Short Mortgage Co. - Form 1098 4,000 State income tax payment sent with 2021 state return in April 2022 2,000 Doctor expenses for Jennifer and Amanda (not covered by insurance) 2,000 Doctor expenses for George 8,000

Jennifer put $5,000 in a traditional IRA in 2022. Her employer does not provide a pension to its employees. Report in Adjustments to Income (Chapter 19).

Jennifer made four estimated federal income tax payments of $300 each on April 15, 2022; June 15, 2022; September 15, 2022; and January 15, 2023. Report in the Payments, Penalties & Extensions Section.

Compute Jennifers net federal tax payable or refund due for 2022. If she incurs a penalty, she wants to pay it with her tax return. If she is to receive a tax refund, she wants to receive a check. Turn in Form 1040, Schedule 1, Schedule 2, Schedule A, Schedule B, Schedule C, Schedule D, Schedule SE, Schedule 8812, and Form 8995.

If you want to print out your results, you will need to create a PDF file of your tax return. First, click on the File Return tab at the top of the screen. Click on Print Complete Return. Next, click on create PDF. After you create the PDF file, you will need to download the PDF to your computer. After you download the PDF file, print the PDF file.

If a student has difficulty creating the PDF file, then the student should use the snipping tool to create copies of Form 1040, Schedule 1, Schedule 2, Schedule A, Schedule B, Schedule C, Schedule D, Schedule SE, Schedule 8812, and Form 8995. The student only needs to snip that part of the form that contains information from the tax return. Place the results in a word file to upload to the Tax Return Assignment Section. The snipping tool is started by simultaneously holding down the Windows key plus Shift key plus s key.

\begin{tabular}{|c|l|r|} \hline Line & Description & \\ \hline 1 & Wages, tips, other compensation & $70,000 \\ \hline 2 & Federal income tax withheld & 6,000 \\ \hline 3 & Social Security wages & 70,000 \\ \hline 4 & Social Security tax withheld & 4,340 \\ \hline 5 & Medicare wages and tips & 70,000 \\ \hline 6 & Medicare tax withheld & 1,015 \\ \hline 12a & DD & 7,500 \\ \hline 16 & State wages, tips, etc. & 70,000 \\ \hline 17 & State income tax withheld & 2,250 \\ \hline \end{tabular}