Instructions Comprehensive Problem 2-2A Ray and Maria Gomez have been married for 3 years. Ray is a propane salesman for Palm Oil Corporation and Maria works as a city clerk for the City of McAllen. Ray's birthdate is February 21, 1991 and Maria's is December 30, 1993. Ray and Maria each received a W-2 from their respective employers (see separate tab). Ray and Maria have interest income from McAllen State Bank which is reported a 1099-INT form (see separate tab). In addition, they own U.S. Savings bonds (Series EE). The bonds had a value of $10,000 on January 1, 2019, and their value is $10,700 on December 31, 2019. They have not made an election with respect to these bonds. Ray has an ex-wife named Judy Gomez. Pursuant to their January 27, 2014 (pre-2019) divorce decree, Ray pays her $450 per month in alimony. All payments were made on time in 2019. Judy's Social Security number is 566-74-8765. During 2019, Ray was in the hospital for a successful operation. His health insurance company reimbursed Ray $4,732 for all of his hospital and doctor bills. In June 2019, Maria's father died. Under a life insurance policy owned and paid for by her father, Maria was paid death benefits of $25,000. She used $7,800 to cover a portion of the funeral costs for her father. Maria bought a Texas lottery ticket on impulse during 2019. Her ticket was lucky and she won $4,025. The winning amount was paid to Maria in November 2019, with no income tax withheld. Palm Oil Corporation provides Ray with a company car to drive while he is working. The Corporation spent $5,000 to maintain this vehicle during 2019. Ray never uses the car for personal purposes. Required: Complete the Gomez's federal tax return for 2019 on Form 1040 and Schedule 1. The Gomez's had health care coverage the entire year. They do not want to make a contribution to the presidential election campaign. Make any other realistic assumptions about any missing data. If an amount box does not require an entry or the amount is zero, enter "O". Enter amounts as positive numbers. If required, round amounts to the nearest dollar. OMB No. 1545-0008 Safe, accurate, FAST! Use IRS en file Visit the IRS website at www.irs.gov/elile a Employee's social security number 469-21-5523 b Employer identification number (EIN) 21-7654321 C Employer's name, address, and ZIP code Palm Oil Corporation 11134 E. Pecan Blvd. McAllen, TX 78501 1 Wages, tips, other compensation 30,415.00 2 Federal income tax withheld 3,070.00 4 Social security tax withheld 1,885.73 3 Social security wages 30,415.00 5 Medicare wages and tips 30,415.00 7 Social security tips 6 Medicare tax withheld 441.02 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Ray Gomez 1610 Quince Avenue McAllen, TX 78701 d e 13 Statutory employee Retirement Third-party 12b plan sick pay C 0 14 Other 12c d 12d On e f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, state ID TX number 17 State income tax 18 Local wages, tips, etc. 20 Locality name 19 Local income tax etc OMB No. 1545-0008 Ray and Maria's W-2 Forms a Employee's social security number 444-65-9912 b Employer identification number (EIN) 23-4444321 Safe, accurate, FAST! Use IRS e w file Visit the IRS website at www.irs.gov/eile 1 Wages, tips, other compensation 32,402.00 2 Federal income tax withheld 2,654.00 4 Social security tax withheld 2,008.92 C Employer's name, address, and ZIP code City of McAllen 1300 W. Houston Ave. McAllen, TX 78501 3 Social security wages 32,402.00 5 Medicare wages and tips 32,402.00 7 Social security tips 6 Medicare tax withheld 469.83 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Maria Gomez 1610 Quince Ave. McAllen, TX 78701 d e 13 Statutory employee Retirement Third-party 12b plan c. sick pay 10 d e 14 Other 12c C 0 d e 12d 0 f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, TX state ID etc. number 17 State income 19 Local income 20 Locality name 18 Local wages, tips, etc. tax tax CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or Payer's RTN (optional) foreign postal code, and telephone no. OMB NO. 1545-0112 2019 Interest Income 1 Interest income McAllen State Bank 3302 N. 10th Street McAllen, TX 78501 $ 673.12 Form 1099-INT 2 Early withdrawal penalty PAYER'S TIN RECIPIENT'S TIN $ Copy B 34-7657651 444-65-9912 For Recipient RECIPIENT'S name Maria Gomez 3 Interest on U.S. Savings Bonds and Treas. obligations $ 4 Federal income tax 5 Investment expenses withheld $ $ 6 Foreign tax paid 7 Foreign country or U.S. possession Street address (including apt. no.) 1610 Quince Avenue City or town, state or province, country, and ZIP or foreign postal code McAllen, TX 78701 8 Tax-exempt interest 9 Specified private $ activity bond interest $ This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 10 Market discount 11 Bond premium FATCA filing requirement $ 12 Bond premium on Treasury obligations $ 13 Bond premium on tax- exempt bond $ Account number (see instructions) 14 Tax-exempt and tax credit bond CUSIP no. 15 State 16 State identification no. 17 State tax withheld $ $ Form 1099-INT (keep for your records) www.irs.gov/Form1099INT Department of the Treasury - Internal Revenue Service Instructions Comprehensive Problem 2-2A Ray and Maria Gomez have been married for 3 years. Ray is a propane salesman for Palm Oil Corporation and Maria works as a city clerk for the City of McAllen. Ray's birthdate is February 21, 1991 and Maria's is December 30, 1993. Ray and Maria each received a W-2 from their respective employers (see separate tab). Ray and Maria have interest income from McAllen State Bank which is reported a 1099-INT form (see separate tab). In addition, they own U.S. Savings bonds (Series EE). The bonds had a value of $10,000 on January 1, 2019, and their value is $10,700 on December 31, 2019. They have not made an election with respect to these bonds. Ray has an ex-wife named Judy Gomez. Pursuant to their January 27, 2014 (pre-2019) divorce decree, Ray pays her $450 per month in alimony. All payments were made on time in 2019. Judy's Social Security number is 566-74-8765. During 2019, Ray was in the hospital for a successful operation. His health insurance company reimbursed Ray $4,732 for all of his hospital and doctor bills. In June 2019, Maria's father died. Under a life insurance policy owned and paid for by her father, Maria was paid death benefits of $25,000. She used $7,800 to cover a portion of the funeral costs for her father. Maria bought a Texas lottery ticket on impulse during 2019. Her ticket was lucky and she won $4,025. The winning amount was paid to Maria in November 2019, with no income tax withheld. Palm Oil Corporation provides Ray with a company car to drive while he is working. The Corporation spent $5,000 to maintain this vehicle during 2019. Ray never uses the car for personal purposes. Required: Complete the Gomez's federal tax return for 2019 on Form 1040 and Schedule 1. The Gomez's had health care coverage the entire year. They do not want to make a contribution to the presidential election campaign. Make any other realistic assumptions about any missing data. If an amount box does not require an entry or the amount is zero, enter "O". Enter amounts as positive numbers. If required, round amounts to the nearest dollar. OMB No. 1545-0008 Safe, accurate, FAST! Use IRS en file Visit the IRS website at www.irs.gov/elile a Employee's social security number 469-21-5523 b Employer identification number (EIN) 21-7654321 C Employer's name, address, and ZIP code Palm Oil Corporation 11134 E. Pecan Blvd. McAllen, TX 78501 1 Wages, tips, other compensation 30,415.00 2 Federal income tax withheld 3,070.00 4 Social security tax withheld 1,885.73 3 Social security wages 30,415.00 5 Medicare wages and tips 30,415.00 7 Social security tips 6 Medicare tax withheld 441.02 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Ray Gomez 1610 Quince Avenue McAllen, TX 78701 d e 13 Statutory employee Retirement Third-party 12b plan sick pay C 0 14 Other 12c d 12d On e f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, state ID TX number 17 State income tax 18 Local wages, tips, etc. 20 Locality name 19 Local income tax etc OMB No. 1545-0008 Ray and Maria's W-2 Forms a Employee's social security number 444-65-9912 b Employer identification number (EIN) 23-4444321 Safe, accurate, FAST! Use IRS e w file Visit the IRS website at www.irs.gov/eile 1 Wages, tips, other compensation 32,402.00 2 Federal income tax withheld 2,654.00 4 Social security tax withheld 2,008.92 C Employer's name, address, and ZIP code City of McAllen 1300 W. Houston Ave. McAllen, TX 78501 3 Social security wages 32,402.00 5 Medicare wages and tips 32,402.00 7 Social security tips 6 Medicare tax withheld 469.83 8 Allocated tips d Control number 9 10 Dependent care benefits Last name Suff. 11 Nonqualified plans 12a See instructions for box 12 e Employee's first name and initial Maria Gomez 1610 Quince Ave. McAllen, TX 78701 d e 13 Statutory employee Retirement Third-party 12b plan c. sick pay 10 d e 14 Other 12c C 0 d e 12d 0 f Employee's address and ZIP code 15 State Employer's 16 State wages, tips, TX state ID etc. number 17 State income 19 Local income 20 Locality name 18 Local wages, tips, etc. tax tax CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or Payer's RTN (optional) foreign postal code, and telephone no. OMB NO. 1545-0112 2019 Interest Income 1 Interest income McAllen State Bank 3302 N. 10th Street McAllen, TX 78501 $ 673.12 Form 1099-INT 2 Early withdrawal penalty PAYER'S TIN RECIPIENT'S TIN $ Copy B 34-7657651 444-65-9912 For Recipient RECIPIENT'S name Maria Gomez 3 Interest on U.S. Savings Bonds and Treas. obligations $ 4 Federal income tax 5 Investment expenses withheld $ $ 6 Foreign tax paid 7 Foreign country or U.S. possession Street address (including apt. no.) 1610 Quince Avenue City or town, state or province, country, and ZIP or foreign postal code McAllen, TX 78701 8 Tax-exempt interest 9 Specified private $ activity bond interest $ This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. 10 Market discount 11 Bond premium FATCA filing requirement $ 12 Bond premium on Treasury obligations $ 13 Bond premium on tax- exempt bond $ Account number (see instructions) 14 Tax-exempt and tax credit bond CUSIP no. 15 State 16 State identification no. 17 State tax withheld $ $ Form 1099-INT (keep for your records) www.irs.gov/Form1099INT Department of the Treasury - Internal Revenue Service