Question
Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 AppleCove Rd., Spokane, Washington. Both are under 65
Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 AppleCove Rd., Spokane, Washington. Both are under 65 years of age. They provide more than half ofthe support of their daughter, Carmen (age 23), who is a full-time veterinarian school student.Carmen receives a $3,200 scholarship covering her room and board at college. They furnish allof the support of Maria (Jamies grandmother, who is age 70 and lives in a nursing home. Theyalso have a son, Gustavo (age 4), DOB 3-12-07.During 2011, Jamie had the following transactions:Salary$175, 625Qualified dividends 2, 500Other receipts for the couple were as follows:Interest Income:Union Bank $220State of Washington - Interest on tax refund 22City of Alto Loma School Bonds 1,250Interest from U.S. Savings Bonds 4102010 Federal Income tax refund received in 2011 2,0072010 State Income tax refund received in 2011 218Washington lottery winnings 1,100Pechanga casino slot machine winnings 2,250Gambling losses at Pechanga casino 6,500Other information that the Reyess provided for the 2011 tax year.Mortgage interest on personal residence $15,081Interest on motor home 5,010Doctors fee for a face lift for Mrs. Reyes 6,800Dentists fee for new dental bridge for Mr. Reyes 2,500Prescribed vitamins for the entire family 110Property taxes paid 7,025DMV fees on motor home (tax portion) 1,044DMV fees on family autos (tax portion) 436Doctors bills for Grandmother 3,960Nursing home for Grandmother 12,200Wheel chair for Grandmother 1,030Property taxes on boat 134Interest on personal MasterCard 550Interest on loan to buy school bonds 270Cash contributions to Church 5,1005-22 Chapter 05 - Itemized DeductionsCash contribution to man at bottom of freeway off ramp 10Contribution of furniture to Goodwill Cost basis 4,000Contribution of same furniture to Goodwill Fair Market Value410Tax return preparation fee for 2010 taxes525Prepare a Form 1040, Schedule A, and other required forms and schedules necessary for thecompletion of the Reyess tax return.
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