CHAPTER 1 THE INDIVIDUAL INCOME TAX RETURN Group 1 – Multiple Choice Questions 1. D The income tax includes elements of social and economic policy (LO 1.1) 2. C The income tax was authorized by the 16th Amendment in 1913 (LO 1.1) 3. C The 1040A and 1040-EZ no longer exist and the 1120 is for corporations (LO 1.2) 4. D Partnerships use Form 1065 to report income tax information. A partner will report their share of income from a partnership on a Form1040 (LO 1.2) 5. D Capital gains and losses are reported directly on the face of the Form 1040 (from Schedule D) (LO 1.2) 6. D A partnership is not generally a tax-paying entity (LO 1.2) 7. C Student loan interest is a for AGI deduction. The other responses are all itemized (from AGI) deductions (LO 1.3) 8. B The deduction for IRA contributions is a for AGI deduction (LO 1.3) 9. D $98,000 – $13,000 (standard deduction is less than itemized deductions) (LO 1.3) 10. D For AGI adjustments are deducted to get to AGI (LO 1.3) 11. B The larger of the two may be deducted (LO 1.3) 12. A An exclusion reduces gross income (LO 1.3) 13. B Filing thresholds generally are the same as the standard deduction amount (LO 1.4) 14. D Ben’s income would need to exceed the standard deduction to require filing a tax return (LO 1.4) 15. D $25,900 + $1,400 (LO 1.4) 16. C Single dependent over 65 and blind threshold is $4,500 for unearned income (LO 1.4) 17. C Joan qualifies as either single or head of household; however, head of household is more advantageous (LO 1.5) 18. D Although Dorothy does not live with Glenda, since Dorothy is a parent that Glenda supports, Glenda may file as head of household (LO 1.5) 19. D Taxpayer may file married filing jointly in year of spouse’s death (LO 1.5)
20. C Surviving spouse is preferred to head of household (LO 1.5) 21. E Either Margaret or her sister (but not both) may claim the mother as a dependent under a multiple support agreement (LO 1.6) 22. D The daughter fails the age test to be a qualifying child and she fails the gross income test ($4,400 in 2022) to be a qualifying relative (LO 1.6) 23. D The child tax credit in 2022 is $2,000 (LO 1.6) 24. B The child tax credit for the 13-year-old child is $2,000. The mother does not meet the support test and cannot be claimed (LO 1.6) 25. B Must be age 16 or under for child tax credit (LO 1.6) 26. A Head of household standard deduction plus additional standard deduction for age 65 ($19,400 + $1,750) (LO 1.7) 27. B Taxpayers age 65 or older are eligible for an additional standard deduction amount (LO 1.7) 28. B Taxpayers that are blind are eligible for an additional standard deduction amount (LO 1.7) 29. D Earned income plus $400 (LO 1.7) 30. E Standard deduction may not exceed typical amount (LO 1.7) 31. D Business inventory is not considered a capital asset (LO 1.8) 32. A Gain of $15,000 ($25,000 amount realized less $10,000 adjusted basis) has been held for more than 12 months and is long-term (LO 1.8) 33. C $10,000 = $240,000 – ($270,000 – $40,000) (LO 1.8) 34. A $43,000 – $3,000. Net capital losses of up to $3,000 may be deducted from ordinary income for individual taxpayers (LO 1.8) 35. C Line 7 is capital gain or (loss) (LO 1.9) 36. B Preparers must get a signed authorization to e-file from the taxpayer. (LO 1.10) 37. B About 90% of returns are filed electronically (LO 1.10) 1-1
1-2
Chapter 1 – The Individual Income Tax Return
Group 2 – Problems 1. a. Raising revenue to operate the government. b. Furthering economic goals such as reducing unemployment. c. Furthering social goals such as encouraging contributions to charities. (LO 1.1) 2. a. b. c. d. e. f. g. h. i.
Form 1040 Schedule B Schedule D Schedule A Schedule 2 Schedule E Schedule 3 Schedule C Schedule 1 (LO 1.2)
3. a. $36,300 = $42,000 + $300 – $6,000. b. $25,900, the greater of itemized deductions or the standard deduction of $25,900. c. $10,400 = $36,300 – $25,900. (LO 1.3) 4. a. $25,000. b. $12,950, the greater of total itemized deductions or the standard deduction amount. c. $12,050 = $25,000 – $12,950. (LO 1.3) 5. a. $53,800 = $54,000 + $2,800 – $3,000 ($7,000 capital loss limited to $3,000). b. $12,950 c. $40,850 = $53,800 – $12,950. (LO 1.3 and 1.8) 6. a. b. c. d.
$47,500 = $48,000 + $2,500 – $3,000. $25,900, the greater of itemized deductions or the standard deduction of $25,900. $21,600 = $47,500 – $25,900. $2,184 (Tax Table) (LO 1.3, 1.5, and 1.7)
7. Adjusted gross income $18,000 Less: Itemized deductions –2,400 Taxable income $15,600 Marco’s tax liability from the Tax Table is $1,670. Note: because they are married and filing separately and Marco’s spouse Tatiana itemizes her deductions, Marco must also itemize his deductions, even though the itemized deductions total is less than the standard deduction he would be otherwise entitled to. (LO 1.3, 1.5, and 1.7) 8. Adjusted gross income ($13,200 + $1,450) $ 14,650 Less: Standard deduction –12,950 Taxable income $ 1,700 (LO 1.3, 1.5, and 1.7) (Note: See Chapter 6 for the tax credit computation for dependent college students under age 24.) 9. a. $34,050 = $47,000 – $12,950. b. Tax tables. Taxpayers with income up to $100,000 must use the tax tables. c. $3,884. (LO 1.3, 1.5, and 1.7) 10. a. b. c. d. e.
$66,000 = $50,000 + $8,000 + $5,000 + $3,000. $63,500 = $66,000 – $2,500. $27,000, the greater of itemized deductions or the standard deduction of $25,900. $36,500 = $63,500 – $27,000. $3,972 (LO 1.3, 1.5, and 1.7)
Solutions for Questions and Problems – Chapter 1
1-3
11. a. $89,400 = $85,400 + $4,000. b. $0. c. $63,500 = $89,400 – $25,900 (standard deduction). (LO 1.3, 1.5, 1.6, and 1.7) 12. Taxable income is: $28,050 = $41,000 – $12,950. Tax liability from the tax tables not the tax rate schedules: $3,164. (LO 1.3, 1.5, and 1.7) 13. Yes.
Since Griffin owes Social Security taxes on the unreported tips (greater than $400), he must file an income tax return. (LO 1.4)
14. a. No. b. Yes. c. No. d. Yes. e. Yes. 15. a. b. c. d. e.
Income is less than the $19,400 standard deduction. Although not required to file, Helen is likely to be eligible for refundable credits and should. Unearned income was more than $1,150. Also, gross income is more than the larger of $1,150 or $1,950 (earned income of $1,550 plus $400). Their income is under the $27,300 standard deduction [$25,900 + $1,400 (over 65 years old)]. Gross income is greater than $25,900, the 2022 standard deduction. His earnings exceeded the $400 limit for self-employed persons. (Note: All answers can be found in the figures in LO 1.4.)
Allen Boyd Caldwell Dell Evans
$2,396. $34,600 – $12,950 = $21,650 $2,702. $37,175 – $12,950 = $24,225 $4,008. $62,710 – $25,900 = $36,810 $3,322. $49,513 – $19,400 = $30,113 $5,391. $57,397 – $12,950 = $44,447 (LO 1.5)
16. a. D b. A
The mother is a qualifying person for head of household. The significant other is not a qualifying person as this individual is not one of the relatives that can be considered a qualifying person for head of household. c. A The brother does not qualify as a dependent (support test). d. B or C MFJ can be claimed in the year of the spouse’s death and is probably preferable. e. A, D or E. Surviving spouse is likely to be preferable but single or head of household are also possible. (LO 1.5 and 1.6)
17. a. Because their income exceeds $100,000, the tax rate schedules must be used. b. $14,554 = $9,615 + 22% x ($106,000 – $83,550). (LO 1.5) 18. Jonas could qualify as either a qualifying child or qualifying relative. The qualifying child tests should be applied first: 1. Relationship test: Confirm Jonas’ relationship to Karl. 2. Domicile test: Where did Jonas live during the tax year? Was it more than one-half of the year with Karl? 3. Age test: What is Jonas’ age and is he a full-time student? 4. Joint return test: What type of tax return does Jonas file (if any)? If MFJ, is this only to obtain a refund? 5. Citizenship test: Is Jonas a US citizen or a tax resident of the US, Canada, or Mexico? 6. Support test: How much of Jonas’ support is provided by Jonas? Is it more than one-half? If Jonas is a qualifying child, then he need not meet the citizenship test to be a qualifying person for head of household filing status. If Jonas is not a qualifying child, he might be a qualifying relative which would prompt the following questions: 1. Relationship or member of household test: If Jonas is Karl’s brother, this test has been confirmed in the qualifying child questions. If Jonas is not one of the qualifying relatives, the remaining tests need not apply since a person that is a qualifying relative by living in the taxpayer’s household is not a qualifying person for purpose of the head of household test.
1-4
Chapter 1 – The Individual Income Tax Return
The following test need only be applied if Jonas is not Karl’s brother but is a qualifying relative for reasons other than living in Karl’s home. 2. Gross income test: What is Jonas’ 2022 income? Is it less than $4,400? 3. Support test: Does Karl provide more than one-half of Jonas’ support? The other two tests (joint return and citizenship) were subject to inquiry under qualifying child. Karl should also be asked if he is unmarried at year end. (LO 1.5 and 1.6) 19. Head of household. Maggie’s parents meet the tests to qualify as her dependents. Maggie is single. Additionally, she provides a home for her parents. Parents are an exception to the requirement that dependents must live in the same household as the taxpayer to qualify the taxpayer for head of household status. (LO 1.5 and 1.6) 20. Single. Unmarried with no dependent. Head of household. Single or abandoned spouse, with qualifying dependent. Surviving spouse [qualified widow(er)]. Spouse died within the past 2 years and has a qualifying dependent. (LO 1.5) 21. a. Yes, his son qualifies as a dependent, meeting the tests of a qualifying relative. b. No. To be a qualifying person, his son must live in the same household as Marquez, so Marquez cannot use the head of household filing status. (LO 1.5 and 1.6) 22. a. Yes b. No (must be below $4,400 gross income test) c. Yes d. Yes e. No
$500 other dependent credit $0 $2,000 child tax credit $500 other dependent credit $0 (LO 1.6)
23. $0. Exemptions were suspended for tax years 2018–2025. $2,500. The 11-year-old child qualifies for the $2,000 child tax credit (under age 17). The 17-year-old qualifies for the other dependent credit of $500. (LO 1.6) 24. No. Because Charles is self-supporting, his parents may not claim him as a dependent. The self-support test is applied to both children and relatives who otherwise qualify, so Charles is disqualified either way. (LO 1.6) 25. No. Phillip cannot be claimed as a dependent because he is not a U.S. citizen or a resident of the U.S., Canada, or Mexico. (LO 1.6) 26. The standard deduction is a specific dollar amount that varies with filing status, age and vision, but not by type of individual deduction. Total itemized deductions depend on the amount and type of items, with some items having limitations based on AGI. They include medical expenses, certain taxes, certain interest expenses, charitable contributions and miscellaneous deductions. A taxpayer should claim the larger of the standard deduction or the total allowed itemized deductions to reduce the taxpayer’s income subject to tax as much as possible. (LO 1.7) 27. i. The “statutory” amount of $1,150. ii. The earned income of the dependent plus $400 iii. The “typical” standard deduction for a taxpayer of that filing status (e.g., $12,950 for a single taxpayer that is under age 65 and not blind) (LO 1.7) 28. A spouse in a married filing separate situation when the other spouse is itemizing; most nonresident aliens; an individual filing a short-year return. (LO 1.7)
Solutions for Questions and Problems – Chapter 1
29. a. b. c.
Gain/(loss) Realized $5,000 ($5,000) ($7,000)
Gain/(loss) Recognized $5,000 ($3,000) ($3,000)
d.
($4,000)
$0
e.
$4,000
$4,000
1-5
Long-term/ Short-term Long-term. Short-term. The excess $2,000 loss can be carried forward. Long-term. The net capital loss deduction is $3,000 regardless of filing status. The excess $4,000 loss can be carried forward. Short-term. Losses on the sale of personal use property are not deductible. Long-term. Gains on the sale of personal use property are taxable.
(LO 1.8) 30. The answer will vary depending on the date the problem is assigned and completed. The purpose of the problem is to familiarize the student with the IRS website. (LO 1.9) 31. Form 8949 is Sales and Other Dispositions of Capital Assets. (LO 1.9) 32. A number of articles in the blog indicate the limit for student loan interest deduction is $2,500. (LO 1.9) 33. Tax returns are electronically signed through the use of a PIN. PINs can be generated by either the taxpayer or by the ERO. Self-selected PINs require the prior year AGI or PIN to authenticate the taxpayer. Before a PIN can be created by the ERO, the preparer must obtain a signed copy of an IRS E-file signature authorization (Form 8878 or 8879). (LO 1.10) 34. Form 8453, copies of Forms W-2, W-2G, and 1099-R, a copy of the consent to disclose tax information form, a copy of the electronic return that could be retransmitted, an acknowledgment file for IRS accepted returns, Forms 8878 and 8879. (LO 1.10)
Group 3 – Writing Assignments 1. Research Solution: Whittenburg and Gill, CPAs San Diego, CA February 20, 20xx Mr. and Mrs. William Carson 3276 Lakeline Drive San Diego, CA Dear William and Sheila, Thank you for requesting my advice concerning the tax treatment of your brother Jerry. I have researched your question and am sorry to say that you cannot claim Jerry as a qualifying child. Although Jerry meets the domicile, age, joint return, citizenship, and self-support test, he does not meet the relationship test. Even though he is William’s brother, in order to be your qualifying child, he must be younger than at least one of you. Although you cannot claim Jerry as a qualifying child, there is a possibility that you could claim him as a qualifying relative if he earns less than $4,400.
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Chapter 1 – The Individual Income Tax Return
My conclusion is based upon the facts that you have provided me. I’m sorry that the news was not more favorable. If you have any questions or would like further explanation, please do not hesitate to call me. Sincerely, Trevor Malcolm for Whittenburg and Gill, CPAs 2. Ethics Solution: To: JasonandMary@email.com Subject: Inquiry on filing status: single v. married filing jointly Jason and Mary, Thank you for your e-mail regarding your filing status for 2022. Let me also say, I really enjoyed your wedding ceremony and reception. Thank you for inviting me. Your e-mail stated that you had prepared your 2022 taxes as both single and married filing jointly and found that your refund would be larger if both of you filed as single. Unfortunately, the tax law is very clear on this issue. Individuals who are married as of the last day of the tax year are considered to be married. Married taxpayers have only two filing status options: married filing jointly or married filing separately. In order to file as single, taxpayers must be unmarried or legally separated from their spouse as of the last day of the tax year. Not only would it be unethical for you to file as single, it would be against the law. The additional tax that married couples sometimes encounter is known as the “marriage penalty.” Hopefully you are finding that your wedded bliss outweighs the tax penalty! If you have any questions or would like further explanation, please do not hesitate to call me. Your friend, Trevor Malcolm For Whittenburg and Gill, CPAs Group 4 – Comprehensive Problems 1A. See Pages 1-7 and 1-8. 1B. See Pages 1-9 to 1-11. 2A. See Pages 1-12 and 1-13. 2B. See Pages 1-14 and 1-15. Group 5 – Cumulative Software Problem The solution to the Cumulative Software Problem is posted on the website for the textbook at www.cengage.com/login.
Solutions for Questions and Problems – Chapter 1
Form
Comprehensive Problem 1A
1040 U.S. Individual Income Tax Return 2022 Department of the Treasury—Internal Revenue Service
Filing Status X Single Check only one box.
Married filing jointly
OMB No. 1545-0074
Married filing separately (MFS)
IRS Use Only—Do not write or staple in this space.
Head of household (HOH)
Qualifying surviving spouse (QSS) If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child’s name if the qualifying person is a child but not your dependent:
Your first name and middle initial
Last name
Maria
Your social security number
Tallchief
466 33 1234
DRAFT AS OF September 1, 2022 DO NOT FILE
If joint return, spouse’s first name and middle initial
Last name
Spouse’s social security number
Home address (number and street). If you have a P.O. box, see instructions.
Apt. no.
Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 ZIP code to go to this fund. Checking a box below will not change Foreign postal code your tax or refund.
543 Space Drive
City, town, or post office. If you have a foreign address, also complete spaces below.
State
Houston
TX
Foreign country name
77099
Foreign province/state/county
You
Digital Assets Standard Deduction
At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.)
Were born before January 2, 1958
Are blind
Dependents (see instructions): (1) First name If more than four dependents, see instructions and check here . .
Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld.
Standard Deduction for— • Single or Married filing separately, $12,950 • Married filing jointly or Qualifying surviving spouse, $25,900 • Head of household, $19,400 • If you checked any box under Standard Deduction, see instructions.
Spouse:
(2) Social security number
Last name
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Credit for other dependents
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1a 1b 1c
d e f
Medicaid waiver payments not reported on Form(s) W-2 (see instructions) . Taxable dependent care benefits from Form 2441, line 26 . . . . . Employer-provided adoption benefits from Form 8839, line 29 . . . .
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Wages from Form 8919, line 6 . . . . . . . Other earned income (see instructions) . . . . Nontaxable combat pay election (see instructions) .
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Add lines 1a through 1h Tax-exempt interest . . Qualified dividends . .
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IRA distributions . . . Pensions and annuities . Social security benefits .
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b Taxable amount . b Taxable amount . b Taxable amount .
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4b 5b 6b
c 7 8
If you elect to use the lump-sum election method, check here (see instructions) Capital gain or (loss). Attach Schedule D if required. If not required, check here Other income from Schedule 1, line 10 . . . . . . . . . . . .
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7 8
9 10 11
Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . Adjustments to income from Schedule 1, line 26 . . . . . . Subtract line 10 from line 9. This is your adjusted gross income .
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9 10 11
12 13 14 15
Standard deduction or itemized deductions (from Schedule A) . . . . . Qualified business income deduction from Form 8995 or Form 8995-A . . . . Add lines 12 and 13 . . . . . . . . . . . . . . . . . . . Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income
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12 13 14
4a 5a 6a
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For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
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Child tax credit
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Is blind
(4) Check the box if qualifies for (see instructions):
Total amount from Form(s) W-2, box 1 (see instructions) . Household employee wages not reported on Form(s) W-2 . Tip income not reported on line 1a (see instructions) . .
.
. . .
Was born before January 2, 1958
(3) Relationship to you
1a b c
If you did not get a Form W-2, see instructions. Attach Sch. B if required.
X No
Someone can claim: You as a dependent Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien
Age/Blindness You:
Income
Yes
Spouse
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Cat. No. 11320B
15
22,114
22,114
22,114 22,114 12,950 12,950 9,164 Form 1040 (2022)
1-7
1-8
Chapter 1 – The Individual Income Tax Return
Comprehensive Problem 1A, cont. Page 2
Form 1040 (2022)
Tax and Credits
16 17
Tax (see instructions). Check if any from Form(s): 1 8814 Amount from Schedule 2, line 3 . . . . . . . .
2
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18 19 20
Add lines 16 and 17 . . . . . . . . . . . . . . . Child tax credit or credit for other dependents from Schedule 8812 . Amount from Schedule 3, line 8 . . . . . . . . . . .
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21 22 23
Add lines 19 and 20 . . . . . . . . . . . . . . . Subtract line 21 from line 18. If zero or less, enter -0- . . . . . Other taxes, including self-employment tax, from Schedule 2, line 21
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24 25
Add lines 22 and 23. This is your total tax Federal income tax withheld from:
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a
Form(s) W-2
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b c d
Form(s) 1099 . . . . . . Other forms (see instructions) . Add lines 25a through 25c . .
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2022 estimated tax payments and amount applied from 2021 return . Earned income credit (EIC) . . . . . . . . . . . . . Additional child tax credit from Schedule 8812 . . . . . . .
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American opportunity credit from Form 8863, line 8 . Reserved for future use . . . . . . . . . Amount from Schedule 3, line 15 . . . . . .
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32 33
Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits Add lines 25d, 26, and 32. These are your total payments . . . . . . . . . .
34
If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid
35a b d 36
Amount of line 34 you want refunded to you. If Form 8888 is attached, check here . Routing number c Type: Checking Account number Amount of line 34 you want applied to your 2023 estimated tax . . . 36
37
Subtract line 33 from line 24. This is the amount you owe. For details on how to pay, go to www.irs.gov/Payments or see instructions .
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38
Estimated tax penalty (see instructions)
38
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4972 3 . . . .
918
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1,199
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32 33 34
918
DRAFT AS OF September 1, 2022 DO NOT FILE
Payments
If you have a qualifying child, attach Sch. EIC.
Refund
Direct deposit? See instructions.
Amount You Owe Third Party Designee
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Joint return? See instructions. Keep a copy for your records.
Paid Preparer Use Only
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Do you want to allow another person to discuss this return with the IRS? See instructions . . . . . . . . . . . . . . . . . . . . . Designee’s name
Sign Here
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1,199
Phone no.
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35a
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37
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Yes. Complete below.
1,199 281 281
No
Personal identification number (PIN)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature
Date
If the IRS sent you an Identity Protection PIN, enter it here (see inst.)
Your occupation
Cashier Spouse’s signature. If a joint return, both must sign.
Date
Phone no.
Email address
Preparer’s name
Preparer’s signature
Spouse’s occupation
Date
If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.)
PTIN
Check if: Self-employed
Firm’s name
Phone no.
Firm’s address
Firm’s EIN
Go to www.irs.gov/Form1040 for instructions and the latest information.
Form 1040 (2022)
Solutions for Questions and Problems – Chapter 1
Form
Comprehensive Problem 1B
1040-SR U.S. Tax Return for Seniors
2022
Department of the Treasury—Internal Revenue Service
Filing Status Check only one box.
OMB No. 1545-0074
IRS Use Only—Do not write or staple in this space.
X Single
Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying surviving spouse (QSS) If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child’s name if the qualifying person is a child but not your dependent:
Your first name and middle initial
Last name
Your social security number
DRAFT AS OF September 21, 2022 DO NOT FILE { Maria
Tallchief
If joint return, spouse’s first name and middle initial
466 33 1234
Last name
Spouse’s social security number
Home address (number and street). If you have a P.O. box, see instructions.
Apt. no.
543 Space Drive
City, town, or post office. If you have a foreign address, also complete spaces below.
Houston
Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Foreign postal code your tax or refund.
State
ZIP code
TX
77099
Foreign province/state/county
Foreign country name
Presidential Election Campaign
You
At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) . . . . . . You as a dependent Your spouse as a dependent Standard Someone can claim: Spouse itemizes on a separate return or you were a dual-status alien Deduction
Digital Assets
Age/Blindness
X Were born before January 2, 1958
You: Spouse:
X No
Are blind Is blind
Was born before January 2, 1958
(2) Social security number (3) Relationship to (4) Check the box if qualifies for (see instructions): you Child tax credit Credit for other dependents
Dependents (see instructions): (1) First name
Yes
Spouse
Last name
If more than four dependents, see instructions and check here
Income
1a Total amount from Form(s) W-2, box 1 (see instructions) . . . . . . .
1a
Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. If you did not get a Form W-2, see instructions.
b Household employee wages not reported on Form(s) W-2 . . . . . .
1b
c Tip income not reported on line 1a (see instructions)
. . . . . . . .
1c
d Medicaid waiver payments not reported on Form(s) W-2 (see instructions)
1d
e Taxable dependent care benefits from Form 2441, line 26
1e
f Employer-provided adoption benefits from Form 8839, line 29
. . . .
1f
. . . . . . . . . . . . . . . . .
1g
h Other earned income (see instructions) . . . . . . . . . . . . . .
1h
g Wages from Form 8919, line 6 i
Attach Schedule B if required.
. . . . . .
Nontaxable combat pay election (see instructions)
.
22,114
1i
z Add lines 1a through 1h . . . . . . . . . . . . . . . . . . . .
1z
2a Tax-exempt interest
.
2a
b Taxable interest
. .
2b
3a Qualified dividends . .
3a
b Ordinary dividends .
3b
4a IRA distributions . . .
4a
b Taxable amount
. .
4b
5a Pensions and annuities
5a
b Taxable amount
. .
5b
6a Social security benefits .
6a
b Taxable amount
. .
6b
22,114
c If you elect to use the lump-sum election method, check here (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . 7
Capital gain or (loss). Attach Schedule D if required. If not required, check here . . . . . . . . . . . . . . . . . . . . . . . .
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
Cat. No. 71930F
7 Form 1040-SR (2022)
1-9
1-10
Chapter 1 – The Individual Income Tax Return
Comprehensive Problem 1B, cont. Page 2
Form 1040-SR (2022)
8
Other income from Schedule 1, line 10 . . . . . . . . . . . . . .
8
9
Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income . .
9
10
Adjustments to income from Schedule 1, line 26 . . . . . . . . . .
10
11
Subtract line 10 from line 9. This is your adjusted gross income
11
Standard Deduction 12
. . .
22,114 22,114 14,700
DRAFT AS OF September 21, 2022 DO NOT FILE See Standard Deduction Chart on the last page of this form.
Tax and Credits
. . .
12
13
Qualified business income deduction from Form 8995 or Form 8995-A .
13
14
Add lines 12 and 13
. . . . . . . . . . . . . . . . . . . . .
14
15
Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income . . . . . . . . . . . . . . . . . . . . . . .
15
7,414
. . . . . . .
16
743
17
Amount from Schedule 2, line 3 . . . . . . . . . . . . . . . . .
17
18
Add lines 16 and 17
18
19
Child tax credit or credit for other dependents from Schedule 8812
. .
19
20
Amount from Schedule 3, line 8 . . . . . . . . . . . . . . . . .
20
21
Add lines 19 and 20 . . . . . . . . . . . . . . . . . . . . . .
21
22
Subtract line 21 from line 18. If zero or less, enter -0- . . . . . . . .
22
23
Other taxes, including self-employment tax, from Schedule 2, line 21 . .
23
24
Add lines 22 and 23. This is your total tax
24
743
d Add lines 25a through 25c . . . . . . . . . . . . . . . . . . .
25d
1,199
26
2022 estimated tax payments and amount applied from 2021 return . .
26
27
Earned income credit (EIC) . . . . . . . . . . .
27
28
Additional child tax credit from Schedule 8812 . . .
28
29
American opportunity credit from Form 8863, line 8 .
29
30
Reserved for future use . . . . . . . . . . . .
30
31
Amount from Schedule 3, line 15
31
32
Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits . . . . . . . . . . . . . . . . . . . . . .
32
Add lines 25d, 26, and 32. These are your total payments . . . . . .
33
16
Tax (see instructions). Check if any from: 1
Payments 25
If you have a qualifying child, attach Sch. EIC.
Standard deduction or itemized deductions (from Schedule A)
Form(s) 8814
2
Form(s) 4972
3
. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . .
743
743
Federal income tax withheld from: 25a
b Form(s) 1099
. . . . . . . . . . . . . . . .
25b
c Other forms (see instructions) . . . . . . . . . .
25c
33
a Form(s) W-2 . . . . . . . . . . . . . . . . .
. . . . . . . .
Go to www.irs.gov/Form1040SR for instructions and the latest information.
1,199
1,199
Form 1040-SR (2022)