Question
Kathy and Rob Wright obtained a divorce effective May 1, 2018, and there have been no revisions to that agreement for 2019. In accordance with
Kathy and Rob Wright obtained a divorce effective May 1, 2018, and there have been no revisions to that agreement for 2019. In accordance with the divorce decree, Rob was required to pay $2,250 per month until their only child turns 18; then the payments would be reduced to $1,500 per month. Kathy has full custody of the child and appropriately takes the dependent deduction and child credit. Furthermore, Rob was to transfer title of their house, which had a cost of $150,000 and a fair value of $200,000 on the date of transfer, to Kathy and was to continue making the monthly mortgage payments of $1,235 on behalf of Kathy. Rob works for a large oil distributor in Santa Fe, NM, and after the divorce lives at 1132 Northgate Avenue, Santa Fe, NM 87501. Kathys social security number is 412-34-5671 (date of birth 11/4/1985), and Robs social security number is 412-34-5670 (date of birth 8/14/1982). His W-2 contained the following information: Wages (box 1) = $85,100.25 Federal W/H (box 2) = $ 5,125.24 Social security wages (box 3) = $85,100.25 Social security W/H (box 4) = $ 5,276.22 Medicare wages (box 5) = $85,100.25 Medicare W/H (box 6) = $ 1,233.95 He also received a Form 1099-INT from First New Mexico Bank with $336 of interest income in box 1. In addition, Rob made a timely $2,500 contribution to his new HSA account. Prepare a 2019 Form 1040 and a Schedule 1 as well as a Form 8889 for Rob.
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