Your assignment is to complete and turn in Mr. Joshua Tillman’s 2022 Form 1040 along with all required forms and schedules. For purposes of this assignment, you do not need to attach any Forms W-2, 1098, 1099, or K-1. You should also ignore any penalties that the taxpayer may have incurred. Except as otherwise noted in this document or in the syllabus, you will receive 10-percentage point deduction for any instruction not followed.

Joshua Tillman lives at 177 Misty Rd, in the Laurel Canyon neighborhood of Los Angeles, California, 90046. He married Nancy Chateau in 2015, but the couple divorced in May 2022. Joshua has not remarried, and he has lived in a townhouse that he rents from a local landlord since the divorce. Nancy decided to move to Seattle, Washington, after the divorce. 

Per his divorce decree with Nancy, executed May 2022, he has custody of their eleven-year-old daughter, Lana. While Lana occasionally visits her mom on the weekends, she spends most of her time living with her dad in Laurel Canyon. The divorce decree stipulates that Nancy must pay alimony to Joshua each year as long as she remains alive and single. It further stipulates that Nancy must pay child support for Lana. In 2022, Nancy paid $32,000 of alimony and $16,000 in child support. The decree gives Nancy the right to claim the dependency exemption, along with any associated credits, for Lana as long as Lana is eligible to be a dependent of either parent. Joshua and Nancy have already filed the necessary forms to make sure this happens.

Joshua is a US citizen. He would like to receive any tax refund she is owed via check. He has informed you that he has no interests in foreign bank accounts or foreign trusts, and that he would not like to contribute to the Presidential Election Campaign. Also, Joshua did not buy, sell, exchange, or otherwise acquire any financial interest in a virtual currency during 2022.

Joshua’s family information is listed in the below table:

Name	Age	SSN
Joshua	41	123-45-5678
Lana	11	234-56-7890

During the year, Joshua worked for various companies. All appropriate payroll taxes were withheld by her employers. The Forms W-2 that Joshua received contain the following information:

Employer	Gross Wages	Federal Income Tax Withholding	State Income Tax Withholding
Pure Comedy, Inc.	$17,000	$2,450	$330
Chloe, LLC	$6,200	$150	$50
Helplessness Blues, LLC	$26,000	$2,050	$600

In addition, Joshua received the following income during the year:

Type of Income	Amount
Interest income from U.S. Treasury Bonds	$400
Interest income from a City of Los Angeles Bond	$290
Interest income from Chase Bank, Inc.	$310
Life insurance proceeds on the death of his great grandmother	$32,000

Also, Joshua is a 30% owner of Fleet Foxes, Inc., which is an S-corporation that reported $29,000 of ordinary business income in 2022. He has held his interest in the company for five years. Joshua is not considered a passive investor in the company. Fleet Foxes’ Employer Identification Number (EIN) is 13-49622587.

During the year, Helplessness Blues, LLC, provided Joshua with $31,000 of group-term life insurance coverage. This cost the company $111.

In March, Joshua won seven tickets to a private Paul White concert in Chattanooga. He won the tickets from a local radio station. Each ticket was worth $50. There was no withholding on this amount at the time Joshua received the tickets.

In October, due to a downturn in the economy, Joshua lost his jobs at all three companies. He then went on unemployment and received a total of $3,100 for the year. He has been searching for a new job ever since.

Finally, Joshua informs you that he and Lana had qualifying minimum health insurance coverage for the whole year.

 

Note: You may assume that there are no penalties for underpayments, late payments, or late filing. You may also ignore any alternative minimum tax implications. Finally, you do not need to prepare a Schedule K-1 for Joshua’s interest in the S-corporation