David and Lillian Perdue are married taxpayers, have a daughter, and filed jointly. They live at 9510 Bluebird Canyon Drive, Seattle, WA 99201. The Purdue own their own home, which was paid off last year. David is a salesman for the Canyon Honda car dealer, and Lillian works at the same dealership as the service department manager. The SS# for David 412-34-5670 (DOB 1/181971), Lillian 412-34-5671 (DOB 3/14/1971 ), and their child, Erin 412-34-5671 (DOB 11/21/2011). Erin attends school during the day and in the afternoon attends Seattle Day Care (1 Day Street, Seattle, WA 99201, EIN # 92-6789012. Purdue paid the school $2,800 during the year for after-school care.

The W-2 forms from Canyon Honda contain the following information:

Lillian Purdue

• Wages (Box 1) = $72,000
• Federal W/H (Box 2) = $7,165
• Social Security Wages (Box 3) = $72,000
• Social security W/H (Box 4) = $4,464
• Medicare wages = $72,000
• Medicare W/H = $1,044

David Purdue

• Wages (Box 1) = $62,434.91
• Federal W/H (Box 2) = $6,492.14
• Social Security Wages (Box 3) = $62,434.91
• Social security W/H (Box 4) = $3,870.96
• Medicare wages = $62,434.91
• Medicare W/H = $ 905.30

David and Lillian had qualifying healthcare coverage at all times during the tax year. Prepare the Perdues federal tax return. Use form 1040 and any additional appropriate schedules or forms they may need for credits. For any missing information, make a reasonable assumption.