Use the following information to complete Thomas and Rachel McNeil’s Joint 2015 Federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

Taxpayer Facts:

1. Thomas McNeil is employed as an airline pilot for Rocky Mountain Airlines in Denver, CO. Rachel is employed as a teacher’s assistant at O’Malley Elementary School in Henderson, CO. They have been married since 1994. Thomas and Rachel live in a home they purchased this year. Thomas and Rachel have three children who live with them all year, Robert (19), Denise (15) and Sara (10). Thomas and Rachel provided the following personal information:

a. Thomas and Rachel do not want to contribute to the presidential election campaign.

b. Thomas and Rachel live at 21905 Inspiration Dr., Henderson, CO 80022

c. Thomas’s birthday is 10/12/1970 and his Social Security number is 555-55-5551

d. Rachel’s birthday is 7/16/1973 and her Social Security number is 444-44-4442

e. Robert’s birthday is 6/30/1996 and his Social Security number is 454-54-5454

f. Denise’s birthday is 8/12/2000 and her Social Security number is 343-43-4343

g. Sara’s birthday is 5/13/2005 and her Social Security number is 232-32-3232

2. During 2015, Thomas and Rachel received $550 in interest from City of Denver municipal bonds, $1,070 interest from US Treasury bonds, and $65 from their savings account at SCD Credit Union. Thomas and Rachel are joint owners of the City of Denver bonds and the US Treasury bonds. They have a joint savings account at SCD Credit Union.

3. On January 21, 2015, Rachel was involved in a car accident. Because the other driver was at fault, the other driver’s insurance company paid Rachel $1,350 for medical expenses relating to her injuries from the accident and $300 for emotional distress from the accident. She received payment on March 15, 2015.

4. Thomas’s father died on November 15, 2014. Thomas received a $100,000 death benefit from his father’s life insurance policy on February 8, 2015.

5. On February 15, 2015, Thomas hurt his arm on a family skiing trip in Utah and was unable to fly for two weeks. His insurance company paid $4,000 of his expenses.

6. Rachel’s grandmother died on March 10, 2015, leaving Rachel with an inheritance of $30,000. She received the inheritance on May 12, 2015.

7. On April 1, 2015 Rachel slipped in the O'Malley Elementary lunchroom and injured her back. Rachel received $1,200 in worker’s compensation benefits because the work-related injury caused her to miss two weeks of work. She also received a $2,645 reimbursement for medical expenses from the health insurance company. O'Malley Elementary pays the premiums for Rachel’s health insurance policy as a nontaxable fringe benefit.

8. On May 17, 2015, Thomas and Rachel received a federal income tax refund of $975 from their 2014 federal income tax return.

9. On June 5, 2015, Thomas’s aunt Beatrice gave Thomas $18,000 because she wanted to let everyone know that Thomas is her favorite nephew.

10. One September 29, 2015, Rachel won an iPad valued at $500 in a raffle at the annual fair held at Denise’s high school.

11. Thomas and Rachel have qualifying insurance for the entire family for the purposes of the Affordable Care Act (ACA).

12. Thomas goes gambling with some buddies on New Year’s Day (January 1, 2015) and wins $2,300 on a slot machine. However, he did not receive a W-2G for his winnings.

13. Rachel has a girl’s weekend over Mother’s Day (May 11, 2015), but she is not as lucky as Thomas and loses $1,400. .

14. Thomas and Rachel had itemized deductions of $13,000 in 2014 and received a refund of Colorado state taxes paid on April 20 th 2015 in the amount of $1,200.

15. Thomas and Rachel paid $24,000 in mortgage expenses in 2015. Within these payments were $2,500 of property tax for the residence and $8,900 in interest expense.

16. Thomas and Rachel had $4,200 of additional medical expenses in 2015. This does not include the amounts used for injuries where they received reimbursement of their medical bills.

17. Thomas and Rachel own two vehicles. Their Ford Explorer is a 2016 model. They paid $1,200 to register the vehicle in November of 2015. Of this registration fee, $800 was in ownership tax and $400 was in fees. Their Audi S4 is a 2015 model. They paid $1,400 to register their car in 2015. Of that registration fee, $900 was is ownership tax and $500 was in fees.

18. Thomas, who graduated from Metro State University in 1993, is a proud supporter of his Alma mater. He donated $3,500 to their scholarship fund in 2015. The scholarship fund is appropriately classified as a non-profit foundation.

19. Rachel supports the Denver Dumb Friends league and donated $4,000 to them in 2015. The Denver Dumb Friends League is registered as a non-profit 501(c)(3) organization.

20. Thomas is an avid bowler. He won $2,300 in winnings from various tournaments that he entered. He incurred tournament registration fees of $500, travel expenses of $1,200, and equipment costs of $500.

21. Robert is in his second year of college at MSU. He is a full-time student studying accounting. He lived at home and his parents paid his tuition, books and fees. Tuition, books and fees costs were $18,000 for the year. His books of $1,100 (included in the $18,000) did not have to be purchased at the MSU bookstore.

22. Thomas had $5,724 of Colorado tax withheld on his W-2 for the year. Rachel had no state income tax withheld.