Note: This problem is for the 2022 tax year. Logan B. Taylor is a widower whose spouse, Sara, died on June 6, 2020. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2022, he had the following receipts: $ 80,000 Salary Interest income- Money market account at Omni Bank Savings account at Boone State Bank City of Springfield general purpose bonds Inheritance from Daniel Life insurance proceeds Amount from sale of St. Louis lot Proceeds from estate sale Federal income tax refund (for 2021 tax overpayment) $300 1,100 3,000 4,400 60,000 200,000 80,000 9,000 700 Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2022. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2017, for $85,000 and held as an investment. Because the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2022, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died. Logan's expenditures for 2022 include the following:/nMedical expenses (including $10,500 for dental) Taxes- State of Missouri income tax (includes withholdings during 2022) Property taxes on personal residence Interest on home mortgage (Boone State Bank) Contribution to church (paid pledges for 2022 and 2023) $4,200 4,500 Logan Taylor (age 48) Helen Taylor (age 70) Asher Taylor (age 23) Mia Taylor (age 22) $13,500 8,700 5,600 4,800 While Logan and his dependents are covered by his employer's health insurance policy, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2022, upon the advice of his pastor, he prepaid his pledge for 2023. Logan's household, all of whom he supports, includes the following: Social Security Number Birth Date 123-45-6787 123-45-6780 123-45-6783 123-45-6784 08/30/1974 01/13/1952 07/18/1999 02/16/2000 Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married. Federal income tax of $4,200 was withheld from his wages.

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