Required information [The following information applies to the questions displayed below.] Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University.

Joe works as a design engineer for a manufacturing firm, while Jessie runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer portion of the self-employment tax on Jessie's income is $674. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to the Red Cross $ 146,100 18,600 1,850 756 960 a. Determine Joe and Jessie's AGI and taxable income for the year. Note: Round your intermediate calculations to the nearest whole dollar amount. Joe and Jessie's AGI Joe and Jessie's Taxable income $ 13,700 6,800 7,562 6,600 350 1,350 28,000 2,700 1,890 2,800 6,460 167 2,430 1,348 6,180 3,600 13,020 625 Required Information [The following information applies to the questions displayed below.] Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm, while Jessle runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business, and it has been consistently profitable over the years. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married joint. Assume that the employer portion of the self-employment tax on Jessie's income is $674. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joe's salary Jessie's craft sales Interest from certificate of deposit Interest from Treasury bond funds Interest from municipal bond funds Expenditures: Federal income tax withheld from Joe's wages State income tax withheld from Joe's wages Social Security tax withheld from Joe's wages Real estate taxes on residence Automobile licenses (based on weight) State sales tax paid Home mortgage interest Interest on Masterdebt credit card Medical expenses (unreimbursed) Joe's employee expenses (unreimbursed) Cost of Jessie's craft supplies Postage for mailing crafts Travel and lodging for craft shows Self-employment tax on Jessie's craft income College tuition paid for Lizzie Interest on loans to pay Lizzie's tuition Lizzie's room and board at college Cash contributions to the Red Cross $ 146,100 18,600 1,850 756 960 $ 13,700 6,800 7,562 6,600 350 1,350 28,000 2,700 1,890 2,800 6,460 167 2,430 1,348 6,180 3,600 13,020 625 b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A. (Round your Intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial Information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given Information or Problem Statement. Use 2023 tax rules regardless of year on form.) Joe and Jessie does not wish to contribute to the Presidential Election Campaign fund or did not have any virtual currency transactions or Interests. 3 2 of 2 b. Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A. (Round your Intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial Information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given Information or Problem Statement. Use 2023 tax rules regardless of year on form.) Joe and Jessle does not wish to contribute to the Presidential Election Campaign fund or did not have any virtual currency transactions or Interests. Joe and Jessie's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Joe: 111-11-1111 Form 1040 for a Married filing jointly 1040 PG 1 Schedule 1 Form 1040 Page 1. Form 1040 Jessie: 222-22-2222 Filing Status Check only one box. Your first name and middle initial If joint return, spouse's first name and middle initial Department of the Treasury- Internal Revenue Service (99) U.S. Individual Income Tax Return Married filing jointly Single Married filing separately (MFS) Head of household (HOH) 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. ► Foreign country name Digital Assets Standard Deduction Schedule A Lizzie: 333-33-3333 Home address (number and street). If you have a P.O. box, see instructions. City, town, or post office. If you have a foreign address, also complete spaces below. Someone can claim: 2022 Age/Blindness You: Last name Last name Foreign province/state/county OMB No. 1545-0074 You as a dependent Spouse itemizes on a separate return or you were a dual-status alien Were born before January 2, 1958 State 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.) Are blind Your spouse as a dependent Foreign postal code IRS Use Only-Do not write or staple in this space. Apt. no. Spouse: ZIP code Qualifying surviving spouse (QSS) Your social security number Spouse's social security number Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Yes Was born before January 2, 1958 Spouse No Is blind 3 Part 2 of 2 Required information Age/Blindness You: Dependents If more than four dependents. see instructions and check here Income 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. Attach Sch. B if required. 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. (see instructions): (1) First name Were born before January 2, 1958 Last name (2) Social security number 1 a Total amount from Form(s) W-2, box 1 (see instructions) b Household employee wages not reported on Form(s) W-2 c Tip income not reported on line 1a (see instructions) d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) e Taxable dependent care benefits from Form 2441, line 26 f Employer-provided adoption benefits from Form 8839, line 29 g Wages from Form 8919, line 6 h Other earned income (see instructions) i Nontaxable combat pay election (see instructions) z Add lines 1a through 1h 2a 3a Are blind 2a Tax-exempt interest 3a Qualified dividends 4a IRA distributions 5a Pensions and annuities 6a Social security benefits 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 8 Other income from Schedule 1, line 10 9 Add lines 12, 2b, 3b, 4b, 5b. 6b. 7, and 8. This is your total income 10 Adjustments to income from Schedule 1. line 26 11 Subtract line 10 from line 9. This is your adjusted gross income 4a 5a 6a Spouse: 12 Standard deduction or itemized deductions (from Schedule A) 13 Qualified business income deduction from Form 8995 or Form 8995-A 14 Add lines 12 and 13 15 Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income 1040 PG 1 b Taxable interest b Ordinary dividends b Taxable amount b Taxable amount b Taxable amount (3) Relationship to you 11 Was born before January 2, 1958 A Schedule 1 > (4) Check the box if qualifies for (see instructions): Child tax credit 1a 1b 1c 1d 1e 1f 1g 1h 12 2b 3b 4b 5b 6b 7 8 9 10 11 12 13 14 Is blind 15 Credit for other dependents 0 0 0 Cat. No. 11320B Form 1040 (2022) For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. © 2023 McGraw-Hill Education. 0 0 3 Part 2 of 2 ! Full 104U IVI a Maneu minu IVIILIV Required information 1040 PG 1 Form 1040 Schedule A. SCHEDULE 1 (Form 1040) Part I 1 2a b 3 4 Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040, 1040-SR, or 1040-NR 5 6 7 8 a b с d e f 9 h i j k I m COPUL n Schedule 1 Р q Schedule A Additional Income and Adjustments to Income Attach to Form 1040, 1040-SR, or 1040-NR. ►Go to www.irs.gov/Form1040 for instructions and the latest information. Additional Income Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) ► Business income or (loss). Attach Schedule C Other gains or (losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F Unemployment compensation Other income: Net operating loss Gambling Cancellation of debt Foreign earned income exclusion from Form 2555 Income from Form 8853 Income from Form 8889 Alaska Permanent Fund dividends Jury duty pay Prizes and awards Activity not engaged in for profit income Stock options Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property Olympic and Paralympic medals and USOC prize money (see instructions) Section 951(a) inclusion (see instructions) Section 951A(a) inclusion (see instructions) Section 461(1) excess business loss adjustment Taxable distributions from an ABLE account (see instructions) Scholarship and fellowship grants not reported on Form W-2 8a 8b 8c 8d 8e 8f 8g 8h 8i 8j 8k 81 8m 8n 80 8p 8q 8r OMB No. 1545-0074 2022 Attachment Sequence No. 01 Your social security number 1 2a 3 4 5 6 7