With this information Justin Stone was an employee of DataCare Services, Inc. His salary was $45,000 through November 10, 2022, when he was laid off. DataCare Services provided medical insurance for Justin and his family during his employment and agreed to continue this coverage through the end of 2022. He received $7,000 of unemployment compensation from November 11, 2022, through December 31, 2022. FICA withholdings were as follows: Social Security of $2,790 ($45,000 x 6.2%) and Medicare of $653 ($45,000 x 1.45%). Justin lives at 112 Green Road, Crown City, OH 45623. His Social Security number is 111-11-1118. Justin owned an apartment building until November 22, 2022, when he sold it for $200,000 (the apartment building's address is 4826 Orange Street, Crown City, OH 45623; the related land was sold for $10,000). For 2022, he had rent revenue of $33,000. He incurred and paid expenses as follows: $4,568 of repairs, $12,000 of mortgage interest, $10,000 of real estate taxes, and $1,000 of miscellaneous expenses. He purchased the building (not the land) on January 2, 2016, for $125,000 (the related land was purchased for $10,000). The building generated an operating profit each year that Justin owned it. Justin received $13,000 in cash as a gift from his mother to help "tide him over" while he was unemployed. He also withdrew $10,000 from his checking account. He "invested" $300 in lottery tickets during the year but had no winnings. Other relevant tax information for Justin follows: On November 22, 2022, Justin sold for $3,500 equipment that had been used for repairing various items in the apartments. The equipment was purchased for $25,000 on July 10, 2015, and was fully depreciated prior to 2022. Justin has $3,000 of unrecaptured § 1231 losses from prior years. Justin is age 38; is single; is divorced; and has custody of his nine-year-old son, Flint. Justin provides more than 50% of Flint's support. Flint's Social Security number is 123-45-6788. Justin had $1,000 interest income from Blue Corporation bonds. Justin had $1,500 interest income from a State Bank certificate of deposit. Justin had a $2,000 0% / 15% / 20% long-term capital gain distribution from the Brown Stock Investment Fund. Justin had the following itemized deductions: $4,600 real estate taxes on his home; $8,900 mortgage interest on his home; $4,760 charitable contributions (all in cash, all properly documented, and no single contribution exceeding $25); $4,300 state income tax withholding during 2022; $2,000 state estimated income tax payments during 2022; and $2,600 sales taxes paid. Justin did not engage in any digital asset transactions during the year, and he does not want to donate to the Presidential Election Campaign Fund. He had $10,000 of Federal income tax withholding during 2022 and made total Federal estimated income tax payments of $12,000 during 2022. Required: Compute Justin's 2022 net tax payable or refund due. If you use tax forms for your computations, you will need Form 1040 and its Schedules 1, A, B, D, and E and Forms 4797, 8812, and 8582. You are not required to complete the Unrecaptured Section 1250 Gain Worksheet or the Schedule D Tax Worksheet. These two worksheets are provided to assist you in determining the tax liability. Ignore the § 199A deduction for qualified business income (if applicable). Make realistic assumptions about any missing data. If an amount box does not require an entry or the answer is zero, enter "0". Enter all amounts as positive numbers, unless otherwise instructed. It may be necessary to complete the tax schedules before completing Form 1040. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. Use the partial Tax Table provided. help me answer Complete Justin's Schedule 1 below for 2022. SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service 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. OMB No. 1545-0074 2022 Attachment Sequence No. 01 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Justin Stone Your social security number 111-11-1118 Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2a Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a b Date of original divorce or separation agreement (see instructions): 3 Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 fill in the blank 041e2705aff4027_1 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E . . . . . . . . . . . . . . . 5 fill in the blank 041e2705aff4027_2 6 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 fill in the blank 041e2705aff4027_3 8 Other income: a Net operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8a () b Gambling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8b c Cancellation of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8c d Foreign earned income exclusion from Form 2555 . . . . . . . . . . . . . . . . . . . . . . . 8d () e Income from Form 8853 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8e f Income from Form 8889 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8f g Alaska Permanent Fund dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8g h Jury duty pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8h i Prizes and awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8i j Activity not engaged in for profit income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8j k Stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8k l 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 . . . . . . . . . . . . . . . . . . . . . 8l m Olympic and Paralympic medals and USOC prize money (see instructions) . . . . . . 8m n Section 951(a) inclusion (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8n o Section 951A(a) inclusion (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . 8o p Section 461(l) excess business loss adjustment . . . . . . . . . . . . . . . . . . . . . . . . . 8p q Taxable distributions from an ABLE account (see instructions) . . . . . . . . . . . . . . . 8q r Scholarship and fellowship grants not reported on Form W-2 . . . . . . . . . . . . . . . 8r s Nontaxable amount of Medicaid waiver payments included on Form 1040, line 1a or 1d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8s () t Pension or annuity from a nonqualifed deferred compensation plan or a nongovernmental section 457 plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8t u Wages earned while incarcerated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8u z Other income. List type and amount: 8z 9 Total other income. Add lines 8a through 8z . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 . . . . . . . . . . . 10 fill in the blank 041e2705aff4027_4 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 2022 Schedule 1 (Form 1040) 2022 Justin Stone 111-11-1118 Page 2 Part II Adjustments to Income 11 Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 13 Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 16 Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 17 Self-employed health insurance deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 18 Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 19a Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a b Recipient's SSN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c Date of original divorce or separation agreement (see instructions): . . . . . . . . . 20 IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 21 Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 22 Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 23 Archer MSA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 24 Other adjustments: a Jury duty pay (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24a b Deductible expenses related to income reported on line 8l from the rental of personal property engaged in for profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24b c Nontaxable amount of the value of Olympic and Paralympic medals and USOC prize money reported on line 8m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24c d Reforestation amortization and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24d e Repayment of supplemental unemployment benefits under the Trade Act of 1974 . . 24e f Contributions to section 501(c)(18)(D) pension plans . . . . . . . . . . . . . . . . . . . . . . 24f g Contributions by certain chaplains to section 403(b) plans . . . . . . . . . . . . . . . . . . 24g h Attorney fees and court costs for actions involving certain unlawful discrimination claims (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24h i Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations . . . . . . . . . 24i j Housing deduction from Form 2555 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24j k Excess deductions of section 67(e) expenses from Schedule K-1 (Form 1041) . . . . . 24k z Other adjustments. List type and amount: 24z 25 Total other adjustments. Add lines 24a through 24z . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 26 Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 10, or Form 1040-NR, line 10a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 fill in the blank 041e2705aff4027_5 Schedule 1 (Form 1040) 2022

To complete Justin's Schedule 1 for 2022, we need to calculate the additional income and adjustments to income based on the information provided. Let's go through each relevant line: ### Part I: Additional Income 1. **Taxable Refunds, Credits, or Offsets of State and Local Income Taxes (Line 1):** Not applicable based on the information provided. 2. **Alimony Received (Line 2a):** Not applicable. 3. **Business Income or (Loss) (Line 3):** Not applicable. 4. **Other Gains or (Losses) (Line 4):** This would include the sale of equipment. The equipment was sold for $3,500 and was fully depreciated, so the gain is $3,500. 5. **Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts, etc. (Line 5):** - Rental Income: $33,000 - Expenses: $4,568 (repairs) + $12,000 (mortgage interest) + $10,000 (real estate taxes) + $1,000 (miscellaneous) = $27,568 - Net Rental Income: $33,000 - $27,568 = $5,432 6. **Farm Income or (Loss) (Line 6):** Not applicable. 7. **Unemployment Compensation (Line 7):** $7,000 8

Get Started

Get your tax questions answered