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.

Form 1040 - U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only - Do not write in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box. a child but not your dependent. Your social security number Your first name and middle initial Last name (Enter as XXX-XX-XXXX) Rob Wright 412-34-5670 Spouse's social security numb If joint return, spouse's first name and middle initial Last name (Enter as XXX-XX-XXXX) Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campai 1132 Northgate Avenue Check here if you, or your spouse if filing ja to go to this fund. Checking a box below wi your tax or refund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Santa Fe, NM 87501 Foreign country name Foreign province/state/county Foreign postal code You Spouse If more than four dependents, see instructic and here Someone can claim: You as a dependent Your spouse as a dependent Standard Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to vou (4) if qualifies for (see instructie (1) First name Last name (Enter as XXX-XX-XXXX) Child tax credit Credit for other 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest 2a 2b b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required 3a Qualified dividends 3b 4a IRA distributions 4a b Taxable amount 4b c Pensions and annuities 40 d Taxable amount 4d 5a Social security benefits 5a b Taxable amount 5b 6 Capital gain or loss). Attach Schedule D if required. If not required, check here 6 7a Other income from Schedule 1, line 9 7a Standard Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 If you checked any box under Standard Deduction, see instructions. b Add lines 1, 2b, 36, 46, 4d, 55, 6, and 7a. This is your total income 7b 8a Adjustments to income from Schedule 1, line 22 8a b Subtract line 8a from line 7b. This is your adjusted gross income 8b 9 Standard deduction or itemized deductions (from Schedule A) 9 12,200 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 12a Tax (see inst.) Check if any from Form(s): (1) 8814 (2) 4972 (3) 12a b Add Schedule 2, line 3, and line 12a and enter the total 12b 13a Child tax credit or credit for other dependents 13a b Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter -0- 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax 16 0 17 Federal income tax withheld from Forms W-2 and 1099 17 18 Other payments and refundable credits: a Earned income credit (EIC) 18a b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14 18d e Add lines 18a through 18d. These are your total other payments and refundable credits 18e 0 19 Add lines 17 and 18e. These are your total payments 19 0 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a b Routing number c Type: : Checking Savings d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 23 OMB No. 1545-0074 SCHEDULE (Form 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 Department of the Treasury Internal Revenue Service Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form 1040 for instructions and the latest information. Attachment Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Rob Wright 412-34-5670 Part 1 Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received 2a b 3 3 4 Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F 4 5 5 6 6 7 Unemployment compensation 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 0 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 2,500 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 14 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans 15 15 16 Self-employed health insurance deduction 16 17 Penalty on early withdrawal of savings 17 18a Alimony paid 18a b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Reserved for future use 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 22 2,500 For Panerwork Reduction Act Notice see your tax return instructions Cat No 71479F Schedule 1 (Form 1040 or 1040.SR) 2019 OMB No. 1545-0074 Form 8889 Health Savings Accounts (HSAs) 2019 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form8889 for instructions and the latest information. Sequence No. 52 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Social security number of HSA beneficiary. If both spouses have 412-34-5670 Rob Wright HSAs, see instructions Before you begin: Complete Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, if required. Part HSA Contributions and Deduction. See the instructions before completing this part. If you are filing jointly Family 2 and both you and your spouse each have separate HSAs, complete a separate Part I for each spouse. 1 Check the box to indicate your coverage under a high-deductible health plan (HDHP) during 2019 (see Self-only instructions) 2 HSA contributions you made for 2019 (or those made on your behalf), including those made from January 1, 2020, through April 15, 2020, that were for 2019. Do not include employer contributions, contributions through a cafeteria plan, or rollovers (see instructions) 3 If you were under age 55 at the end of 2019 and, on the first day of every month during 2019, you were, or were considered, an eligible individual with the same coverage, enter $3,500 ($7,000 for family coverage). All others, see the instructions for the amount to enter 4 Enter the amount you and your employer contributed to your Archer MSAs for 2019 from Form 8853, lines 1 and 2. If you or your spouse had family coverage under an HDHP at any time during 2019, also include any amount contributed to your spouse's Archer MSAs 3 4 5 Subtract line 4 from line 3. If zero or less, enter -0- 5 0 6 6 Enter the amount from line 5. But if you and your spouse each have separate HSAs and had family coverage under an HDHP at any time during 2019, see the instructions for the amount to enter 7 If you were age 55 or older at the end of 2019, married, and you or your spouse had family coverage under an HDHP at any time during 2019, enter your additional contribution amount (see instructions) 8 Add lines 6 and 7 7 8 0 9 Employer contributions made to your HSAs for 2019 9 during 2019, enter your additional contribution amount (see instructions) 8 Add lines 6 and 7 8 0 9 Employer contributions made to your HSAs for 2019 9 10 Qualified HSA funding distributions 10 11 Add lines 9 and 10 11 0 0 12 Subtract line 11 from line 8. If zero or less, enter -0- 12 13 HSA deduction. Enter the smaller of line 2 or line 12 here and on Schedule 1 (Form 1040 or 1040-SR), line 12, or Form 1040-NR, 13 line 25 Caution: If line 2 is more than line 13, you may have to pay an additional tax (see instructions). Part II HSA Distributions. If you are filing jointly and both you and your spouse each have separate HSAs, complete a separate Part II for each spouse. 14a 14 a Total distributions you received in 2019 from all HSAs (see instructions) b Distributions included on line 14a that you rolled over to another HSA. Also include any excess contributions (and the earnings on those excess contributions) included on line 14a that were withdrawn by the due date of your return (see instructions) c Subtract line 14b from line 14a 14b 14C 0 15 Qualified medical expenses paid using HSA distributions (see instructions) 15 16 Taxable HSA distributions. Subtract line 15 from line 14c. If zero or less, enter -O-. Also, include this amount in the total on 16 0 Schedule 1 (Form 1040 or 1040-SR), line 8, or Form 1040-NR, line 21. Enter HSA and the amount on the line next to the box 17a If any of the distributions included on line 16 meet any of the Exceptions to the Additional 20% Tax (see instructions), check here b Additional 20% tax (see instructions). Enter 20% (0.20) of the distributions included on line 16 that are subject to the additional 20% tax. Also include this amount in the total on Schedule 2 (Form 1040 or 1040-SR), line 8, or Form 1040 NR, line 60. Check box c 17b on Schedule 2 (Form 1040 or 1040-SR), line 8, or box b on Form 1040-NR, line 60. Enter HSA and the amount on the line next to the box For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37621P Form 8889 (2019) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education. Form 1040 - U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only - Do not write in this space. Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Qualifying widow(er) (QW) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box. a child but not your dependent. Your social security number Your first name and middle initial Last name (Enter as XXX-XX-XXXX) Rob Wright 412-34-5670 Spouse's social security numb If joint return, spouse's first name and middle initial Last name (Enter as XXX-XX-XXXX) Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campai 1132 Northgate Avenue Check here if you, or your spouse if filing ja to go to this fund. Checking a box below wi your tax or refund. City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Santa Fe, NM 87501 Foreign country name Foreign province/state/county Foreign postal code You Spouse If more than four dependents, see instructic and here Someone can claim: You as a dependent Your spouse as a dependent Standard Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1955 Are blind Spouse: Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to vou (4) if qualifies for (see instructie (1) First name Last name (Enter as XXX-XX-XXXX) Child tax credit Credit for other 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest 2a 2b b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required 3a Qualified dividends 3b 4a IRA distributions 4a b Taxable amount 4b c Pensions and annuities 40 d Taxable amount 4d 5a Social security benefits 5a b Taxable amount 5b 6 Capital gain or loss). Attach Schedule D if required. If not required, check here 6 7a Other income from Schedule 1, line 9 7a Standard Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 If you checked any box under Standard Deduction, see instructions. b Add lines 1, 2b, 36, 46, 4d, 55, 6, and 7a. This is your total income 7b 8a Adjustments to income from Schedule 1, line 22 8a b Subtract line 8a from line 7b. This is your adjusted gross income 8b 9 Standard deduction or itemized deductions (from Schedule A) 9 12,200 10 Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 12a Tax (see inst.) Check if any from Form(s): (1) 8814 (2) 4972 (3) 12a b Add Schedule 2, line 3, and line 12a and enter the total 12b 13a Child tax credit or credit for other dependents 13a b Add Schedule 3, line 7, and line 13a and enter the total 13b 14 Subtract line 13b from line 12b. If zero or less, enter -0- 14 15 Other taxes, including self-employment tax, from Schedule 2, line 10 15 16 Add lines 14 and 15. This is your total tax 16 0 17 Federal income tax withheld from Forms W-2 and 1099 17 18 Other payments and refundable credits: a Earned income credit (EIC) 18a b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14 18d e Add lines 18a through 18d. These are your total other payments and refundable credits 18e 0 19 Add lines 17 and 18e. These are your total payments 19 0 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a b Routing number c Type: : Checking Savings d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 23 OMB No. 1545-0074 SCHEDULE (Form 1040 or 1040-SR) Additional Income and Adjustments to Income 2019 Department of the Treasury Internal Revenue Service Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form 1040 for instructions and the latest information. Attachment Sequence No. 01 Name(s) shown on Form 1040 or 1040-SR Your social security number Rob Wright 412-34-5670 Part 1 Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 1 2a Alimony received 2a b 3 3 4 Date of original divorce or separation agreement (see instructions) Business income or (loss). Attach Schedule C Other gains or losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E Farm income or (loss). Attach Schedule F 4 5 5 6 6 7 Unemployment compensation 7 8 Other income. List type and amount 8 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a 9 0 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 2,500 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 14 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans 15 15 16 Self-employed health insurance deduction 16 17 Penalty on early withdrawal of savings 17 18a Alimony paid 18a b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Reserved for future use 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a 22 2,500 For Panerwork Reduction Act Notice see your tax return instructions Cat No 71479F Schedule 1 (Form 1040 or 1040.SR) 2019 OMB No. 1545-0074 Form 8889 Health Savings Accounts (HSAs) 2019 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Internal Revenue Service Go to www.irs.gov/Form8889 for instructions and the latest information. Sequence No. 52 Name(s) shown on Form 1040, 1040-SR, or 1040-NR Social security number of HSA beneficiary. If both spouses have 412-34-5670 Rob Wright HSAs, see instructions Before you begin: Complete Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, if required. Part HSA Contributions and Deduction. See the instructions before completing this part. If you are filing jointly Family 2 and both you and your spouse each have separate HSAs, complete a separate Part I for each spouse. 1 Check the box to indicate your coverage under a high-deductible health plan (HDHP) during 2019 (see Self-only instructions) 2 HSA contributions you made for 2019 (or those made on your behalf), including those made from January 1, 2020, through April 15, 2020, that were for 2019. Do not include employer contributions, contributions through a cafeteria plan, or rollovers (see instructions) 3 If you were under age 55 at the end of 2019 and, on the first day of every month during 2019, you were, or were considered, an eligible individual with the same coverage, enter $3,500 ($7,000 for family coverage). All others, see the instructions for the amount to enter 4 Enter the amount you and your employer contributed to your Archer MSAs for 2019 from Form 8853, lines 1 and 2. If you or your spouse had family coverage under an HDHP at any time during 2019, also include any amount contributed to your spouse's Archer MSAs 3 4 5 Subtract line 4 from line 3. If zero or less, enter -0- 5 0 6 6 Enter the amount from line 5. But if you and your spouse each have separate HSAs and had family coverage under an HDHP at any time during 2019, see the instructions for the amount to enter 7 If you were age 55 or older at the end of 2019, married, and you or your spouse had family coverage under an HDHP at any time during 2019, enter your additional contribution amount (see instructions) 8 Add lines 6 and 7 7 8 0 9 Employer contributions made to your HSAs for 2019 9 during 2019, enter your additional contribution amount (see instructions) 8 Add lines 6 and 7 8 0 9 Employer contributions made to your HSAs for 2019 9 10 Qualified HSA funding distributions 10 11 Add lines 9 and 10 11 0 0 12 Subtract line 11 from line 8. If zero or less, enter -0- 12 13 HSA deduction. Enter the smaller of line 2 or line 12 here and on Schedule 1 (Form 1040 or 1040-SR), line 12, or Form 1040-NR, 13 line 25 Caution: If line 2 is more than line 13, you may have to pay an additional tax (see instructions). Part II HSA Distributions. If you are filing jointly and both you and your spouse each have separate HSAs, complete a separate Part II for each spouse. 14a 14 a Total distributions you received in 2019 from all HSAs (see instructions) b Distributions included on line 14a that you rolled over to another HSA. Also include any excess contributions (and the earnings on those excess contributions) included on line 14a that were withdrawn by the due date of your return (see instructions) c Subtract line 14b from line 14a 14b 14C 0 15 Qualified medical expenses paid using HSA distributions (see instructions) 15 16 Taxable HSA distributions. Subtract line 15 from line 14c. If zero or less, enter -O-. Also, include this amount in the total on 16 0 Schedule 1 (Form 1040 or 1040-SR), line 8, or Form 1040-NR, line 21. Enter HSA and the amount on the line next to the box 17a If any of the distributions included on line 16 meet any of the Exceptions to the Additional 20% Tax (see instructions), check here b Additional 20% tax (see instructions). Enter 20% (0.20) of the distributions included on line 16 that are subject to the additional 20% tax. Also include this amount in the total on Schedule 2 (Form 1040 or 1040-SR), line 8, or Form 1040 NR, line 60. Check box c 17b on Schedule 2 (Form 1040 or 1040-SR), line 8, or box b on Form 1040-NR, line 60. Enter HSA and the amount on the line next to the box For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 37621P Form 8889 (2019) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education