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You are preparing a Form $1040$ and all necessary schedules and forms for the tax year ending December $31,2023.1.$ Nancy Smith is single and has two children from her previous marriage. Her daughter, Tracy, is in her freshman year at Big State University and lives on campus in a dorm during the school year. Nancy pays for all of Tracy$$s living expenses, including the amount of her tuition that is not covered by scholarships. Her younger child, Scott, lives with Nancy, and Nancy provides more than half of his support. Nancy provides you with the following additional information: $$ She uses the cash method of accounting and a calendar year for reporting. $$ She does not wish to contribute to the presidential election campaign. $$ Nancy lives at $523$ Essex Street, Bangor, Michigan $49013.$ Nancy$$s birthday is May $31,1983.$ Tracy$$s birthday is October $5,2005.$ Scott$$s birthday is December $1,2008.$ Nancy$$s Social Security number is $000-00-1000.$ Tracy$$s Social Security number is $005-10-7232.$ Scott$$s Social Security number is $004-10-3419.2.$ Nancy is employed as a nuclear engineer with Atom Systems Consultants, Inc. $($ASCI$).$ Her W$-2$ from ASCI is below. $$ Nancy earned a base salary of $$79,500.$ She contributed $$7,000$ to her $401($k$)$ account. $$ ASCI provided Nancy with $$85,000$ of group term life insurance coverage during the year. $$ ASCI paid health club dues of $$600$ to a nearby health club on Nancy$$s behalf. $$ Nancy received free parking in the company$$s security garage that would normally cost $$200$ per month. $3.$ For her strong performance, Nancy was offered a year$-$end bonus in $2023$ equal to $5\%$ of her regular salary. The bonus will be included with her first paycheck

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