Carlos Cruz Rivera and Jennifer Smith Johnson, married to each other, (hereinafter referred to as "marriage") have the following information related to their tax liability for 2019.

A. PERSONAL INFORMATION

Carlos Cruz Rivera Social Security 584-44-3322 Date Birth 15 March 1973 Profession Vice President of Finance, Financial Center Corporation

Jennifer Smith Johnson Social Security 317-15-7321 Date of Birth 17 August 1975 Profession University Professor Physical and Postal Address: 3612 Scotch Haven Dr, Rosslyn, VA 22181 B. FAMILY

John Cruz Smith (Son) Date of birth 23 May 1997 University of Maryland Student Place of Residence Accommodation University of Maryland and Residence Marriage Income Salary $6,000 Annual Scholarship to Study $5,000 Parent Support $10,000 ( Includes $3,000 tuition and $500 books)

Mary Cruz Smith (Daughter) Date of birth October 13, 2009 Student Rosslyn Central School Place of Residence Marriage Income $4,000 Dividends and Interest Cost of Care $6,000 AnnualLy (Paid to a Center Care) Parental Support 100%

Robert Smith (Father Jennifer) Date of birth 15 July 1951 Robert Smith's place of residence Income $15,000 Social Security; $8,000 Marriage Support Salary $10,000 Marta Rivera (Mother Carlos) Date of birth 18 November 1949 Place of residence Marriage residence Income $4,000 Social Security Marriage Support $10,000

C. INCOME:

1. Carlos generated $100,000 in salaries as Vice President at Financial Center Corporation. The employer made the following withholdings at source on income contribution: Federal $18,000, Virginia State $4,000, Arlington City $1,000. In addition, he withheld $6,200 for social security and $1,425 for medicare.

2. Jennifer generated $25,000 in salaries as a part-time teacher at a local university. The university made the following withholding tax on income contribution: Federal $2,500. In addition, he withheld $1,550 for social security and $363 for medicare.

3. Sale of 1,000 Latitude Entertainment Shares acquired as Investment (Active Capital): a. Sale price: $20,000 b. Date of sale: August 1, 2019 c. Cost of shares: $15,000 d. Purchase date: July 15, 2015 e. Selling expense : $100

4. Dividends a. Magic Sport Corporation (qualified dividends) $10,000 b. Barcelona Fountain Corporation (non-qualified dividends) 3,000

5. Interest a. Commonwealth Associated Free State Bonds of Puerto Rico $0 b. Virginia State Bonds 1,000 c. Vista Steel Corporation 2,000

6 Bonds. Inheritance for the amount of $50,000 received by Jennifer from a late aunt. In turn, her aunt designated her as a life insurance beneficiary in the amount of $100,000. That amount was also received by Jennifer during 2019.

7. Carlos began receiving $300 per month in January 2019 as a result of an annuity acquired in 2000. Its cost was $20,000.

8. Jennifer received $2,500 when she earned a raffle held at her Church where she bought a ticket for $1.

9. Charles's employer gave him a stay in Paris, France for 7 days and 6 nights for him and his wife for their excellent performance. The market value of such holidays amounts to $8,000.

10. During 2019, the couple suffered a car accident resulting from the negligence of another driver. The couple received the following compensations:

a. Reimbursement of health insurance for the treatment of physical injuries: $5,000

b. Worker Compensation 1,000

c. Negligent driver's payment for mental distress (for mental distress (for mental distress accident) 2,000

d. Negligent driver payment for loss of profits 4,000

11. The couple, on two vacation trips during 2019 to Las Vegas and Atlantic City, bet on games the amount of $2,500 and earned the amount of $1,500.

D. INCOME (BUSINESS AND CONDUCTED ENTITIES): 1. West Virginia Windows Partnership Marriage holds a 25% stake in the West Virginia Windows Partnership. During 2019, the entity reported on Annex K (Schedule K) of Form 1065 (U.S. Return of Partnership Income) the following information:

a. Ordinary Business Income $40,000

b. Interest Income 5,000

The entity distributed $10,000 to the couple during 2019. E. PERSONAL EXPENSES:

1. Medical Expenses: a. Mary Cruz' Hospital $4,000 'Physicians 3,000' Medical pharmacy (not prescribed) 175

b. Robert Smith's Physicians 2,000 ' Prescription Drugs 1,000

c. Marriage Medical Plan 6,000

F. INTEREST:

a. Mortgage: Primary residence in Virginia 14,000

b. Mortgage: Second Residence in Miami 6,500 (Marriage lived in this property 30 days during 2019 and was not rented).

c. Mortgage: "Loan origination fees and loan discount" 5,000 related to your main residence that was purchased during 2019 for $500,000.

d. Auto: Carlos 2,000

e. Student Car Loan: Jennifer 4,000 College Loan

G. CONTRIBUTIONS: a. Property Tax Contributions 3,900

b. Contributions for purchases made during a trip to New York City (Sales Tax) 250 H. DONATIONS:

a. Christian Church 4,200

b. Red Cross 250

c. Georgetown University 2,500 I. LOSSES:

a. The marriage order was a total loss during the car accident they suffered during 2019. The value on the car market at the time of the accident was $14,000 and its contributory base is $16,000. The insurance refunded the $2,000 amount.

J. EDUCATION

a. Carlos paid $1,000 in continuing education in courses on financial subjects not reimbursed by his employer.

K. IRA AND CERTIFICATES OF DEPOSITS

a. Both spouses contributed the maximum extent allowed by law to their IRA for the year 2019. None of the spouses participate in the Retirement Plan of their employers.

b. During the early withdrawal of a Certificate of Deposit, the bank withheld the amount of $500 as a penalty. L. EMPLOYEE EXPENSES:

a. Carlos spent $3,000 on gasoline on trips from his home to his place of work.

b. Carlos traveled 10,000 miles during 2019 in the management of his work. Gas costs and car repairs amounted to $4,000. Such expenses shall not be reimbursed by their employer. \

c. Jennifer received $1,000 from the university for reimbursed expenses. The university does not have an "Accountable Plan". Jennifer lost receipts to support her expenses.

M. OTHER DISUMBURSEMENTS

a. The couple paid $300 for the preparation of their federal income contribution form.

1. Compute Adjusted Gross Income. (Adjusted Gross Income) 2. Determine deductions from AGI. 3. Compute Net Income Subject to Contribution. (Taxable Income) 4. Compute the income contribution. (Income Tax)