Question
Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamie's social
Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamie's social security number is 412-34-5670 (date of birth 06/15/1971) and Cecilia's is 412-34-5671 (date of birth 04/12/1971). They provide more than half of the support of their daughter, Carmen (age 23), social security number 412-34-5672 (date of birth 09/01/1997), who is a full-time veterinarian school student. Carmen received a $3,200 scholarship covering her room and board at college. She was not required to perform any services to receive the scholarship. Jamie and Cecilia furnish all of the support of Maria (Jamie's grandmother), social security number 412-34-5673 (date of birth 11/06/1950), who is age 70 and lives in a nursing home. They also have a son, Gustavo (age 4), social security number 412-34-5674 (date of birth 03/14/2016). The Reyes and all of their dependents had qualifying health care coverage at all times during the tax year.
Jaime's W-2 contained the following information:
Federal Wages (box 1) =$145,625.00
Federal W/H (box 2) =$15,112.35
Social Security wages (box 3) =$137700.00
Social Security W/H (box 4) =$8537.40
Medicare Wages (box 5) =$145,625.00
Medicare W/H (box 6) =$2,111.56
State Wages (box 16) =$145,625.00
State W/H (box 17) =$5,435.00
Other receipts for the couple were as follows:
Dividends (all qualified dividends) $2,500
Interest income:
Union Bank $220
State of Idahointerest on tax refund22
City of Boise school bonds1,250
Interest from U.S. savings bonds410
(not used for educational purposes)
2019 federal income tax refund received in 20202,007
2019 state income tax refund received in 2020218
Idaho lottery winnings1,100
Casino slot machine winnings2,250
Gambling losses at casino 6500
Other information that the Reyeses provided for the 2020 tax year:
Mortgage interest on personal residence $10081
Loan interest on fully equipped motor home3,010
Doctor's fee for a face-lift for Mrs. Reyes8,800
Dentist's fee for a new dental bridge for Mr. Reyes3,500
Vitamins for the entire family110
Real estate property taxes paid $5,025
DMV fees on motor home (tax portion)1,044
DMV fees on family autos (tax portion)436
Doctors' bills for grandmother2,960
Nursing home for grandmother10,200
Wheelchair for grandmother1,030
Property taxes on boat134
Interest on personal credit card550
Interest on loan to buy public school district bonds270
Cash contributions to church (all the contributions were in cash and none more than $250 at any one time)6100
Cash contribution to man at bottom of freeway off-ramp25
Contribution of furniture to Goodwillcost basis4,000
Contribution of same furniture listed above to Goodwillfair market value410
Tax return preparation fee for 2019 taxes625
-Form 1040
-All appropiate schedules and forms
All to complete family's tax return
They do not want to contribute to the presidential election campaign and do not want anybody to be a third-party designee. For missing information, make reasonable assumptions. They had qualifying health insurance at all times throughout the year.
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