This is a $1040$ Tax Problem

Please use the following information to complete a $1040$ for Matt and Amanda O$$Brien for $2023.$ All forms are available at www$.$irs.gov.

Matt and Amanda are married and live at $151$ Pear Tree Lane, Chesapeake, MD $21915.$ Their phone number is $(309)123-4567.$ Matt works as a supervisor at Windsor, Rivers & Birch. Amanda is a schoolteacher for River Road Academy. Matt has two children from a previous relationship. Flynn is $25$ and completing his last year of law school. Flynn works part$-$time at the local library $($where he can often study while working$)$ and earned $$2,500$ last year. Nicolette is $21$ and a full$-$time student at ISU. She works as a personal trainer at the local gym and earned $$5,000$ last year. When Nicolette isn$$t at school her primary residence is with Matt and Amanda. Matt and Amanda have three children as a couple. Dean is $13,$ and twins Rose and Maribel are $11.$ Matt $(123-45-6780),$ Amanda $(456-80-2345),$ Flynn $(244-58-7532),$ Nicolette $(366-74-5336),$ Dean $(422-85-6247),$ Rose $(422-85-6247),$ and Maribel $(465-33-8330).$

During the year, The O$$Briens had the following receipts:

Salaries for Matt and Amanda $$155,100$

Interest income $($reported on a $1099-$INT from Ally Bank$)325$

Inheritance from Matt$$s grandfather who passed away $150,000$

Life insurance proceeds from Matt$$s grandfather$$s policy $200,000$

$$ Matt contributed $$6,000$ to a traditional IRA during the year. Matt is not part of a retirement plan at work.

$$ On February $14,$ Amanda sold Caterpillar stock for $$13,000.$ She originally paid $$11,800$ for the stock on October $20,2022.$

$$ The O$$Briens own their home and paid $$5,870$ in real estate tax during the year. They paid $$5,533$ in qualified interest on their home mortgage, which is held by Boone State Bank. The interest was reported on a Form $1098.$

$$ The O$$Briens had the following medical expenses:

o Medical insurance premiums of $$6,000$

o Dentist bills of $$600$

o Doctor bill incurred in $2022$ and not paid until $2023$ of $$100$

o Operation $$8,800$

$$ During the year, the O$$Briens also paid $$4,800$ for Nicolette$$s tuition. Nicolette has not previously claimed the Hope Scholarship Credit or American Opportunity Credit. She has not completed the first $4$ years of postsecondary education before $2023.$ Nicolette received a Form $1098-$T$.$

$$ Amanda, Nicolette, Rose and Maribel decided to sell some things at a garage sale in the summer. The proceeds from the sale were $$1,550.$ They donated half of the money to Big Brothers Big Sisters, and used the other half to splurge on some spa treatments.

$$ In September, Matt and Amanda attended a dinner sponsored by a qualified charitable organization. The O$$Briens paid $$200$ for the dinner tickets. The cost of a comparable meal would normally be $$80($total$).$

$$ The O$$Briens contributed $$16,000$ to their local church, River City Church. They also contributed used clothing to the Salvation Army $($cost of $$1,200,$ fair Mattet value of $$350).$ All donations are supported by receipts, and the clothing was in very good condition.

$$ Dean is busy with after$-$school activities most days, but Rose and Maribel are picked$-$up by a babysitter who watches them until Matt, Amanda or an older sibling get home. The O$$Briens paid the babysitter $$4,000$ this year. Their babysitter$$s name is Maci Wilcox. She lives next door at $153$ Pear Tree Lane. Her SSN is $233-97-1110.$ She is not considered a household employee.

You do not need to complete the State of Maryland tax return. You do not need to create source documents such as W$-2$s$,1099$s$,$ etc.

You should include a $1040$ and any additional schedules or forms that $$feed into$$ the $1040.$

If you calculated any phase$-$outs, I would encourage you to attach a sheet with your calculations to your tax return.