Note: This problem is for the $2022$ tax year.

Alfred E$.$ Old and Beulah A$.$ Crane, each age $42,$ married on September $7,2020.$ Alfred and Beulah will file a joint return for $2022.$ Alfred's

Social Security number is $111-11-1109.$ Beulah's Social Security number is $123-45-6780,$ and she has chosen to use "Old" as her married

name. They live at $211$ Brickstone Drive, Atlanta, GA $30304.$

Alfred was divorced from Sarah Old in March $2017.$ Under the divorce agreement, Alfred is to pay Sarah $$1,250$ per month for the next $10$

years or until Sarah's death, whichever occurs first. Alfred paid Sarah $$15,000$ in $2022.$ In addition, in January $2022,$ Alfred paid Sarah

$$50,000,$ which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes.

Sarah's Social Security number is $123-45-6788.$

Alfred's salary for $2022$ is $$150,000.$ He is an executive working for Cherry, Inc. $($Federal I.D$.$ No$.98-7654321).$ As part of his compensation

package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $$22,800$ for Federal

income taxes and $$8,000$ for state income taxes. The proper amounts were withheld for FICA taxes.

Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. $($Federal I.D$.$ No$.11-1111111),$ as a public defender.

She received a salary of $$42,000$ in $2022.$ Her employer withheld $$6,300$ for Federal income taxes and $$2,400$ for state income taxes. The

proper amounts were withheld for FICA taxes.

Alfred and Beulah received taxable interest income of $$500.$ Alfred and Beulah received a $$1,900$ refund on their $2021$ state income taxes;

they claimed the standard deduction on their $2021$ Federal income tax return. Alfred and Beulah paid $$4,500$ interest and $$1,450$ property

taxes on their personal residence in $2022.$ They paid sales taxes of $$1,400,$ for which they maintain the receipts. Alfred and Beulah have

never owned or used any digital assets, and they do not want to contribute to the Presidential Election Campaign.

Required:

Compute the Olds' net tax payable $($or refund due$)$ for $2022.$ Use Form $1040$ and Schedule $1$ to complete this tax return.

It may be necessary to complete the tax schedule and worksheet before completing Form $1040.$

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter $"0".$

Make realistic assumptions about any missing data.

When computing the tax liability, do not round your immediate calculations. If required round your final answers to the

nearest dollar.

Use the $2022$ Tax Rate Schedule provided. Do not use the Tax Tables. $*$Reg$.1\mathrm{.}79-3,$ effective for coverage after June $30,1999.$ Complete Federal Statements for Alfred E$.$ and Beulah A$.$ Old.

$2022$

Federal Statements

Statement $1$

Schedule $1,$ Line $8$z

Other Income

Total

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