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Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamies social

Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamies social security number is 412-34-5670 (date of birth 6/15/1971) and Cecilias is 412-34-5671 (date of birth 4/12/1973). They provide more than half of the support of their daughter, Carmen (age 23), social security number 412-34-5672 (date of birth 9/1/1997), who is a full-time veterinarian school student. Carmen received a $3,200 scholarship covering some of her tuition at college. She was not required to perform any services to receive the scholarship. Jamie and Cecilia furnish all of the support of Maria (Jamies mother), social security number 412-34-5673 (date of birth 11/6/1950), 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 3/14/2016).

Jamie'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) = $ 137,700.00
Social Security W/H (box 4) = $ 8,537.40
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 refund 22
City of Boise school bonds 1,250
Interest from U.S. savings bonds (not used for educational purposes) 410
2019 federal income tax refund received in 2020 2,007
2019 state income tax refund received in 2020 218
Idaho lottery winnings 1,100
Casino slot machine winnings 2,250
Gambling losses at casino 6,500

Other information that the Reyeses provided for the 2020 tax year:

Mortgage interest on personal residence $ 10,081
Loan interest on fully equipped motor home 3,010
Doctors fee for a face-lift for Mrs. Reyes 8,800
Dentists fee for a new dental bridge for Mr. Reyes 3,500
Vitamins for the entire family 110
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 mother 2,960
Nursing home for mother 10,200
Wheelchair for mother 1,030
Property taxes on boat 134
Interest on personal credit card 550
Interest on loan to buy public school district bonds 270
Cash contributions to church (all the contributions were in cash and none more than $250 at any one time) 6,100
Cash contribution to man at bottom of freeway off-ramp 25
Contribution of furniture to Goodwillcost basis 4,000
Contribution of same furniture listed above to Goodwillfair market value 410
Tax return preparation fee for 2019 taxes 625

Required:

Prepare a Form 1040 and appropriate schedules for the completion of the Reyess tax return. They do not want to contribute to the presidential election campaign and do not want anyone to be a third-party designee. For any missing information, make reasonable assumptions. (List the names of the taxpayers and any income they receive in the order in which they appear in the problem. Enter the required information in the Dependents section in a chronological order of "Dependent's social security number". Input all the values as positive numbers unless otherwise stated in the forms. Instructions can be found on certain cells within the forms. Round your final answers to the nearest whole dollar amount. Do not skip rows while entering in Deductions section of Form 1040 PG1 and in Interest section of Schedule B.)

Use the appropriate Tax Tables and Tax Rate Schedules.

  • 1040 PG 1
  • 1040 PG 2
  • Schedule 1
  • Schedule A
  • Schedule B
  • Qualified Dividend

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