Marc and Mikkel are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules for 2022)Complete Schedule 1 of Form 1040 for Marc and Mikkel. SCHEDULE 1(Form 1040)Department of the TreasuryInternal Revenue ServiceName(s) shown on Form 1040, 1040-SR, or 1040-NRAdditional Income and Adjustments to IncomeAttach to Form 1040, 1040-SR, or 1040-NR.Go to www.irs.gov/Form 1040 for instructions and the latest information.Part I Additional Income1 Taxable refunds, credits, or offsets of state and local income taxes2a Alimony receivedbNet operating lossDate of original divorce or separation agreement (see instructions):Business income or (loss). Attach Schedule C34Other gains or (losses). Attach Form 47975Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E6 Farm income or (loss). Attach Schedule F7Unemployment compensation.8 Other income:abGamblingc Cancellation of debtd Foreign earned income exclusion from Form 2555eIncome from Form 8853f Income from Form 8889g Alaska Permanent Fund dividendsh Jury duty payi Prizes and awardsj Activity not engaged in for profit incomek Stock options.1 Income from the rental of personal property if you engaged in the rentalfor profit but were not in the business of renting such propertym Olympic and Paralympic medals and USOC prize money (seeinstructions)n Section 951(a) inclusion (see instructions)o Section 951A(a) inclusion (see instructions)pSection 461(1) excess business loss adjustmentq Taxable distributions from an ABLE account (see instructions)r Scholarship and fellowship grants not reported on Form W-2s Nontaxable amount of Medicaid waiver payments included on Form1040, line 1a or 1dt Pension or annuity from a nonqualifed deferred compensation plan ora nongovernmental section 457 planu Wages earned while incarceratedz Other income. List type and amount:8a8b8c8d8e8f8g8h8i8j8k818m8n808p8q8r8s (8t8u8zAttachmentSequence No. 01Your social security number9 Total other income. Add lines 8a through 8z10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8For Paperwork Reduction Act Notice, see your tax return instructions.Cat. No. 71479F12aOMB No. 1545-0074202234567910Schedule 1 (Form 1040) 2022 Schedule 1 (Form 1040) 2022Part II Adjustments to Income11 Educator expenses12Certain business expenses of reservists, performing artists, and fee-basis governmentofficials. Attach Form 210613Health savings account deduction. Attach Form 888914 Moving expenses for members of the Armed Forces. Attach Form 390315 Deductible part of self-employment tax. Attach Schedule SE16Self-employed SEP, SIMPLE, and qualified plansSelf-employed health insurance deduction171819ab Recipient's SSNc Date of original divorce or separation agreement (see instructions):20 IRA deduction .2222221Penalty on early withdrawal of savingsAlimony paidStudent loan interest deductionReserved for future use23 Archer MSA deduction24 Other adjustments:a Jury duty pay (see instructions)bDeductible expenses related to income reported on line 81 from therental of personal property engaged in for profitcNontaxable amount of the value of Olympic and Paralympic medalsand USOC prize money reported on line 8m.d Reforestation amortization and expenses.eRepayment of supplemental unemployment benefits under the TradeAct of 1974.fContributions to section 501(c)(18) (D) pension plansg Contributions by certain chaplains to section 403(b) plansh2526Attorney fees and court costs for actions involving certain unlawfuldiscrimination claims (see instructions).i Attorney fees and court costs you paid in connection with an awardfrom the IRS for information you provided that helped the IRS detecttax law violationsj Housing deduction from Form 2555k Excess deductions of section 67(e) expenses from Schedule K-1 (Form1041) .zOther adjustments. List type and amount:24a24b24c24d24e24f24g24h24i24j24k24zTotal other adjustments. Add lines 24a through 24zAdd lines 11 through 23 and 25. These are your adjustments to income. Enter here and onForm 1040 or 1040-SR, line 10, or Form 1040-NR, line 10a111213141516171819a2021222325Page 226Schedule 1 (Form 1040) 2022

Schedule 1 for Form 1040 Form 1040, the individual income tax return, may also need to be filed with…

Answered: Marc and Mikkel are married and earned…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q