600 Note: This problem is for the 2018 tax year Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wandes employed part- time as a paralegal for a law firm. During 2018, the Deans recorded the following receipts. Setaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest income- City of Albuquerque general purpose bonds $1,000 Ford Motor Company bonds 1,100 Ally Bank certificate of deposit 400 2.500 Child support payments from John Allen 7,200 Annual gifts from parents 26.000 Settlement from Roadrunner Touring Company 90,000 Lottery winnings Federal income tax refund (for tax year 2017) 400 Wanda previously married to John Allen. When they divorced in 2018, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a form 8332 Waiver. Under the divorce decree, John was obligated to pay alimony and child support-the alimony payments were to terminate if Wanda remarried In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. Because the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred to her $90,000 cash in settiement of the personal Injuries she sustained. The Deans made the following 2018 expenditures. Medical expenses (not covered by insurance) $7,200 Taxes Property taxes on personal residence $3,600 State of New Mexico income tax (includes amount withheld from wages during 2018) 4.200 7,800 Interest on home mortgage 6,000 Gifts to charity 3.600 Life insurance premiums (policy on Lance's life) 1,200 Contribution to traditional IRA (on Wande's behalf) 5,000 Traffic fines 300 contribution to the reelection campaign fund of the mayor of Santa Fe 500 Funeral expenses for Wayne Boyle 6,300 The life insurance policy was taken out by Lance several years ago and desgnates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company, Because the mayor is a member of the local chamber of Commerce, Lance felt compelled to make the political contribution The Dean household includes the following, for whom they provide more than half of the support. Social Security Birth Date Number 123-45-6786 12/16/1976 Lance Dean (age 42) Wanda Dean (age 40) 123-45-6787 08/08/1978 BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see Form 1040 separate instructions. (2018) 1000 Lance H. and Wanda B. Dean 123-45-6785 Page 2 Wages, salaries, tips, etc. Attach Form(s) W-2 1 A 2a Tax-exempt 2a 25 interest Qualified 3a Ja Ordinary dividends dividends 30 4a TRAS, pensions, Taxable 2. and annuities amount 4b I 5o Social security Taxable Sa benefits Sb amount 6 Total income. Add tines 1 through s. Add any amount from Schedule 1, line 22 6 7 7 Adjusted gross income. If you have ne adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6.. Standard deduction or itemized deductions (from Schedule A). Qualified business income deduction (see instructions) 8 Standard Deduction for- Song 10 $32.000 Taxable income. Subtract lines 8 and 9 from line 7. I 20 10 | als/ or less, enter ... 1000 11 a Tox (see inst) (check it any from . ros Form(s) 8814 1.000 2 Form 4972 wybox Add any amount from Schedule 2 and check here pandort 12 a Child tax credit/credit for other dependents b Add any amount from Schedule and check here 11 12 13 Subtract line 12 from line 11. 11 zero or less, enter 13 14 Other taxes. Attach Schedule 4 14 Total tax. Add lines 13 and 14 15 16 Federal income tax withheld from Forms W-2 and 1099 16 17 Refundable credits a EIC (see Inst.) b Sch 8812 c Form 3863 Add any amount from Schedules 17 Add lines 16 and 17. These are your total payments 18 18 Refund 19 Ir line 18 is more than line 15, subtract line 15 from ine 18. This is the amount you overpaid 19 20a Amount of line 19 you want refunded to you. Form 8888 is attached, check here 200 Direct Routing number deposit See APRI