Cumulative Problems 44. Lance H. and Wanda B Dean are married and live at 431 Yucca Drive, Santa Fe, NM rsoILance works for the convention bureau of the local Chamber of ammerce. while Wanda is employed part-time as a paralegal for a law firm. Tax Computation Problem During 2018, the Deans recorded the following receipts. $101,000 Salaries ($60,000 for Lance, $41,000 for Wanda) Interest income City of Albuquerque general purpose bonds Ford Motor Company bonds $1,000 1,100 400 Ally Bank certificate of deposit Child support payments from John Allen Annual gifts from parents Settlement from Roadrunner Touring Company Lottery winnings Federal income tax refund (for tax year 2017) 2,500 7,200 26,000 90,000 600 400 172 of 1421 CHAPTER s Computing theTa4 Wands peevicounly was maried to Jon Allen When they divonced in 2013, Wanda was awarded custody of their two children, Penny and Kyle. (Note Wanda has never isoued a Form 8382 waliver.) LUnker the divonce decree, John was obligated to were to terminate if Wanda pay remarried In July, while ping hrchindowrnown Santa Fe, Wanda was inured by a tur bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses Cinchuding a one-week stay in a hosptal). To avoid a lawsui,Roadrunner also transferred to her $90,000 cash in settlement of the pensonal injaries she sastained The Deans made the following 201N expenditures Medical espenses inet covered by insurance Tases Property taxes on penonal eidece State of New Mexico income tax incdludes amount wenheld hom wages" ng 201.0 6,000 600 1200 ,000 nterest on to charity on Lances lifel Life insurance Contribution to traditional RA on Wandia's behaltf fund of the mayor of Santa fe Funeral expenses for Wayne Boyle 6300 The lie insurance policy was taken out by Lance several years ago and desig nates Wanda as the beneficiary As a part-time employee, Wanda is excluded from coverage under her empkoyer's pension plan. Coeseqpently, she peuwides for her own retirement with a traditional IRA obtained at a local trust compamy Because the mayor is a member of the local Chamber of Commence, Lance felt compelled to make the political contribution The Dean household includes the following, for whom they provide more than half of the suppon Social Security Number Birth Dute 12/16/7976 Lance Dean lage 42 Wanda Dean lage 40 123 45-6787 123-45-6788 503/202 23-45-6785 Wayne Dean lage 75) Penny graduated from high school on May 9, 2018, and is undecided about college. This year, she eaned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Lance's widower father who died on December 20, 2017. For the past few years, Wayne qualified as a dependent of the Deans Federal income tax wiahheld is $4,200 (Lance) and $2,100 (Wanda). amount of Social Security and Medicare tax was wihheld. All members of the family were covered by health insurance for all of 20L8 The proper Determine the 2018 Federal income tax for the Deans on a joint return by com- pleting the appeopriate forms. They do not want to contribuse to the Presidensia Bection Campaign Fund If an overpayment Cumulative Problems 44. Lance H. and Wanda B Dean are married and live at 431 Yucca Drive, Santa Fe, NM rsoILance works for the convention bureau of the local Chamber of ammerce. while Wanda is employed part-time as a paralegal for a law firm. Tax Computation Problem During 2018, the Deans recorded the following receipts. $101,000 Salaries ($60,000 for Lance, $41,000 for Wanda) Interest income City of Albuquerque general purpose bonds Ford Motor Company bonds $1,000 1,100 400 Ally Bank certificate of deposit Child support payments from John Allen Annual gifts from parents Settlement from Roadrunner Touring Company Lottery winnings Federal income tax refund (for tax year 2017) 2,500 7,200 26,000 90,000 600 400 172 of 1421 CHAPTER s Computing theTa4 Wands peevicounly was maried to Jon Allen When they divonced in 2013, Wanda was awarded custody of their two children, Penny and Kyle. (Note Wanda has never isoued a Form 8382 waliver.) LUnker the divonce decree, John was obligated to were to terminate if Wanda pay remarried In July, while ping hrchindowrnown Santa Fe, Wanda was inured by a tur bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses Cinchuding a one-week stay in a hosptal). To avoid a lawsui,Roadrunner also transferred to her $90,000 cash in settlement of the pensonal injaries she sastained The Deans made the following 201N expenditures Medical espenses inet covered by insurance Tases Property taxes on penonal eidece State of New Mexico income tax incdludes amount wenheld hom wages" ng 201.0 6,000 600 1200 ,000 nterest on to charity on Lances lifel Life insurance Contribution to traditional RA on Wandia's behaltf fund of the mayor of Santa fe Funeral expenses for Wayne Boyle 6300 The lie insurance policy was taken out by Lance several years ago and desig nates Wanda as the beneficiary As a part-time employee, Wanda is excluded from coverage under her empkoyer's pension plan. Coeseqpently, she peuwides for her own retirement with a traditional IRA obtained at a local trust compamy Because the mayor is a member of the local Chamber of Commence, Lance felt compelled to make the political contribution The Dean household includes the following, for whom they provide more than half of the suppon Social Security Number Birth Dute 12/16/7976 Lance Dean lage 42 Wanda Dean lage 40 123 45-6787 123-45-6788 503/202 23-45-6785 Wayne Dean lage 75) Penny graduated from high school on May 9, 2018, and is undecided about college. This year, she eaned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Lance's widower father who died on December 20, 2017. For the past few years, Wayne qualified as a dependent of the Deans Federal income tax wiahheld is $4,200 (Lance) and $2,100 (Wanda). amount of Social Security and Medicare tax was wihheld. All members of the family were covered by health insurance for all of 20L8 The proper Determine the 2018 Federal income tax for the Deans on a joint return by com- pleting the appeopriate forms. They do not want to contribuse to the Presidensia Bection Campaign Fund If an overpayment