/n Group Tax Return Project Week 9: Credits Connor and Jordan Billings are married taxpayers. Connor works part-time in retail and Jordan works part-time at an elementary school. Their details are

shown below: Name Date of Birth SSN Connor R. Billings 06/01/1956 Jordan M. Billings 05/24/1964 123-45-6789 987-65-4321 Occupation Retail Sales Teacher's Aide The couple's W-2s include the following information: Taxpayer Wages Federal Withholdings State Withholdings Connor 23,100 2,100 1,050 Jordan 21,200 2,050 950 Connor retired last year and received social security benefits this year. His 1099-SA includes the following information: Taxpayer Connor Social Security Benefits Received 18,000 Connor and Jordan received 12 payments of $65500 this year from an annuity they purchased several years ago. Payments began when Connor turned 65. The annuity cost $200,000. When Connor dies, Jordan will receive the same monthly payment until Jordan's death. Use the simplified method to calculate taxability of the annuity payments received. Jordan enjoys buying lottery tickets this year. This year, Jordan spent about $50 total on scratch- off tickets but managed to win $12,000! Connor sold the following stock this year: Security ALBT BNR CXY Date Acquired 6/7/2006 1/4/2008 2/2/2023 Cost $22,000 Date Sold Proceeds 3/4/2023 $31,000 $2,000 3/4/2023 $250 $1,400 3/4/2023 $2,200 Connor and Jordan recently moved to a smaller home. They kept their previous residence as a rental property. The following expenses were incurred this year: Rents received Property Taxes Property Insurance Landscaping Maintenance Service Property Management Service Depreciation $18,000 4,300 1,200 600 1,200 3,500 Jordan is a limited partner in the Mt Hood Cascades Adventures partnership. Jordan's K-1 showed a $3,000 ordinary loss and $1,200 long-term capital loss. Connor and Jordan both contribute the maximum deductible amount allowed to their IRA accounts. Neither taxpayer is eligible for an employer-sponsored plan. The couple also contributes the maximum amount allowed to their Health Savings Account. Jordan spent $475 this year on supplies for the third-grade classroom to which she is assigned at work. Connor and Jordan's Form 1098 from their mortgage lender shows the following information: Mortgage Interest Paid Property Taxes Paid $12,000 $5,200 In addition, Connor and Jordan paid the following medical expenses during the year: Physician Office Visits Dental Office Visits Hospitalization Hearing Aids Glasses Dentures Prescriptions Medicare Premiums Paid $600 $400 $2,500 $1,200 $840 $2,000 $6,200 $2,100 They used their Health Savings Account to pay for $4,200 of these expenses, but the rest were unreimbursed. Connor and Jordan also made the following charitable contributions during the year: Cash donation to United Way $1,200 Cash donation to Jordan's school fundraiser Cash donation to Humane Society $500 $600 Old car to Humane Society FMV $2,200 Miscellaneous Household Items to Goodwill $600 (estimated thrift value; Connor has a list) Jordan's grandson, Carter, began living with the couple in April 2023. They provide all of his support. Carter's birthday is 3/14/2015. His social security number is 111-22-3333. The couple replaced all of the windows in their new home this year. They qualify as energy efficient improvements. The windows cost $8,500. They also purchased a new 2023 Chrysler Pacifica Hybrid for $48,500. Complete the Form 1040 worksheet in Google Sheets for Connor and Jordan. Do not use tax software. Submit the Google Sheets file to Canvas with your group number at the end of the file name. Only one member of your group is required to submit the document because it is set up as a group assignment.