Instructions Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501, Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm . During 2016 , the Deans recorded the following receipts . Salaries ($60,000 for Lance, $41,000 for Wanda) $ 101,000 Interest income City of Albuquerque general purpose bonds $1,000 Ford Motor Company bonds 1,100 Ally Bank certificate of deposit 400 2,500 Child support payments from John Allen 7,200 Annual gifts from parents 26,000 Settlement from Roadrunner Touring Company 90,000 Lottery winnings 600 Federal income tax refund (for tax year 2015) 400 Wanda previously was married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree , John was obligated to pay alimony and child support - the alimony payments were to terminate if Wanda remarried. In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred to her $90,000 cash in settlement of the personal injuries she sustained The Deans made the following 2016 expenditures Medical expenses ( not covered by insurance $7,200 Taxes Property taxes on personal residence $3,600 State of New Mexico income tax (includes amount withheld from wages during 2015 ) 4,200 7,800 Interest on home mortgage 6,000 Paid church pledge 3,600 Life insurance premiums (policy on Lance's life ) 1,200 Contribution to traditional IRA (on Wanda's behalf ) 5,000 Traffic fines 300 Contribution to the reelection campaign fund of the mayor of Santa Fe 500 Funeral expenses for Wayne Boyle 6,300 The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she