Question
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 6/15/1967) and Cecilias is 412-34-5671 (date of birth 4/12/1969). They provide more than half of the support of their daughter, Carmen (age 23), social security number 412-34-5672 (date of birth 9/1/1993), 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 (Jamies grandmother), social security number 412-34-5673 (date of birth 11/6/1946), 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 3/14/2012). The Reyes and all of their dependents had qualifying health care coverage at all times during the tax year. Jamies W-2 contained the following information: Federal Wages (box 1) = $145,625.00 Federal W/H (box 2) = $ 16,112.25 Social Security wages (box 3) = $ 128,400.00 Social Security W/H (box 4) = $ 7,960.80 Medicare Wages (box 5) = $145,625.00 Medicare W/H (box 6) = $ 2,111.56 State Wages (box 16) = $145,725.00 State W/H (box 17) = $ 5,435.00 Page B-3 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 2015 federal income tax refund received in 2016 2,007 2015 state income tax refund received in 2016 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 2016 tax year: Mortgage interest on personal residence $11,081 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 grandmother 2,960 Nursing home for grandmother 10,200 Wheelchair for grandmother 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 to listed above Goodwillfair market value 410 Tax return preparation fee for 2015 taxes 625 Required Prepare a Form 1040,Schedule 1, Schedule A, and Schedule B, and Qualified Dividends for the completion of the Reyeses 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.
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