Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda is employed part-time as a paralegal for a law firm. During 2019, the Deans had the following receipts: Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest income City of Albuquerque general purpose bonds $1,000 Ford Motor company bonds 1,100 Ally Bank certificate of deposit 400 2,500 Child support payments from John Allen 7,200 Annual gifts from parents 26,000 Settlement from Roadrunner Touring Company 90,000 Lottery winnings 600 Federal income tax refund (for tax year 2018) 400 Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form $332 walver.) Under the divorce decree, John was obligated to pay alimony and child support--the alimony payments were to terminate if Wanda remarried. In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. Because the driver was clearly at fault, the owner of the buo, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avold a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal Injuries the sustained. The Deans had the following expenditures for 2019 Medical expenses (not covered by insurance) $7,200 Taxes- Property taxes on personal residence $3,600 State of New Mexico income tax (includes amount withheld from wages during 2019) 4,200 7,800 Interest on home mortgage (First National Bank) 6,000 Charitable contributions 3,600 Life Insurance premiums (policy on Lance's life) 1,200 Contribution to traditional IRA (on Wanda's behalf) 5,000 Traffic fines 300 Contribution to the reelection campaign fund of the mayor of Santa Fe 500 Funeral expenses for Wayne Boyle 6,300 The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution The Deans' household includes the following, for whom they provide more than half of the support: Social Security Number Birth Date Lance Dean (age 42) 123-45-6786 12/16/1977 Wanda Dean (age 40) 123-45-6787 08/08/1979 Penny Allen (age 19) 123-45-6788 10/09/2000 Kyle Allen (age 17) 123-45-6780 05/03/2003 Wayne Boyle (age 75) 123-45-6785 06/15/1944 Penny graduated from high school on May 9, 2019, and is undecided about college. During 2019, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel, Wayne is Wanda's widower father who died on December 20, 2019. For the past few years, Wayne qualified as a dependent of the Deans. Federal Income tax withheld is $3,900 (Lance) and $1,800 (Wanda). The proper amount of Social Security and Medicare tax was withheld. Required: Determine the Federal income tax for 2019 for the Deans on a joint return by completing the appropriate forms. Use Form 1040 and Schedule 1 to complete this tax return. They do not own and did not use any virtual currency during the year, and they do not want to contribute to the Presidential Election Campaign Fund. If an overpayment results, it is to be refunded to them. Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "O". . Use the tax rate schedules included with this problem. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. 1 101,000 2b 1,500 3b 1 Wages, salaries, tips, etc. Attach Form() W-2. table interest. Attach Sch. 2a Tax-exempt interest 2a 1,000 if required 3a Qualified dividends... Ordinary dividends. Attach 3 Sch. Bit required $IRA distributions 40 Dacable amount Pensions and annuities 4e d Taxable amount Sa Social security benefits Taxable amount 6 Capital gain or loss). Attach Schedule Dif required. If not required, check here. 7a Other income from Schedule 1, line 9 4 d Sb Standard Deduction for - Single or Married filing separately. $12,200 Married filing Jointly of Qualifying widower). $24.400 Head of household $18,350 If you checked any box under Standard Deduction, see Instructions 6 7a 600 7 103,100 5.000 b Addlines 1, 2, 3, 4, 4, 5, 6, and 7a. This is your total income 80 Adjustments to Income from Schedule 1. line 22 b Subtract lines from line 70. This is your adjusted gross income Standard deduction or itemized deductions from Schedule A) 10 Qualified business Income deduction. Attach Form 1915 or Form 1995 A 10 Bb 98,100 9 9 24,400 112 Addnes 9 and 10 110 24.400 Taxable income. Subtract line la from line Sb. If zero or less enter 0 115 23. 200 Check My Work 1 2014 2/9/20 128 Tax (see inst.) Check if any from Form(s): 108814 2 04972 30 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 3,000 b Add Schedule 3, line 7, and line 13a and enter the total 13b X 14 Subtract line 13b from line 12b. If zero or less, enter 0- 14 15 16 16 12 5,700 If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see Instructions 15 Other taxes, including self-employment tax, from Schedule 2. line 10 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned Income credit (EIC). 18a b Additional child tax credit. Attach Schedule 8812 185 American opportunity credit from Form 3863, line 8 186 d Schedule 3, line 14 180 e Add lines 18a through 18d. These are your total other payments and refundable Credits 180 19 Add lines 17 and 1 Be. These are your total payments 19 5,700 19 Add lines 17 and 18e. These are your total payments ....... 19 5,700 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 20 21a Direct deposit? Routing number c Type: Checking a Savings See instructions. d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount Amount you owe. Subtract line 19 from line 16. For details on how to pay, see Instructions 23 You Owe 24 Estimated tax penalty (see instructions) 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return with D Yes. Complete below. the IRS? See instructions. No Designee (Other than Designee's Phone Personal Identification paid preparer) name - no. number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and Sign to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than Here taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Joint return Protection PIN anterior Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda is employed part-time as a paralegal for a law firm. During 2019, the Deans had the following receipts: Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest income City of Albuquerque general purpose bonds $1,000 Ford Motor company bonds 1,100 Ally Bank certificate of deposit 400 2,500 Child support payments from John Allen 7,200 Annual gifts from parents 26,000 Settlement from Roadrunner Touring Company 90,000 Lottery winnings 600 Federal income tax refund (for tax year 2018) 400 Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form $332 walver.) Under the divorce decree, John was obligated to pay alimony and child support--the alimony payments were to terminate if Wanda remarried. In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. Because the driver was clearly at fault, the owner of the buo, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avold a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal Injuries the sustained. The Deans had the following expenditures for 2019 Medical expenses (not covered by insurance) $7,200 Taxes- Property taxes on personal residence $3,600 State of New Mexico income tax (includes amount withheld from wages during 2019) 4,200 7,800 Interest on home mortgage (First National Bank) 6,000 Charitable contributions 3,600 Life Insurance premiums (policy on Lance's life) 1,200 Contribution to traditional IRA (on Wanda's behalf) 5,000 Traffic fines 300 Contribution to the reelection campaign fund of the mayor of Santa Fe 500 Funeral expenses for Wayne Boyle 6,300 The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution The Deans' household includes the following, for whom they provide more than half of the support: Social Security Number Birth Date Lance Dean (age 42) 123-45-6786 12/16/1977 Wanda Dean (age 40) 123-45-6787 08/08/1979 Penny Allen (age 19) 123-45-6788 10/09/2000 Kyle Allen (age 17) 123-45-6780 05/03/2003 Wayne Boyle (age 75) 123-45-6785 06/15/1944 Penny graduated from high school on May 9, 2019, and is undecided about college. During 2019, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel, Wayne is Wanda's widower father who died on December 20, 2019. For the past few years, Wayne qualified as a dependent of the Deans. Federal Income tax withheld is $3,900 (Lance) and $1,800 (Wanda). The proper amount of Social Security and Medicare tax was withheld. Required: Determine the Federal income tax for 2019 for the Deans on a joint return by completing the appropriate forms. Use Form 1040 and Schedule 1 to complete this tax return. They do not own and did not use any virtual currency during the year, and they do not want to contribute to the Presidential Election Campaign Fund. If an overpayment results, it is to be refunded to them. Make realistic assumptions about any missing data. Enter all amounts as positive numbers. If an amount box does not require an entry or the answer is zero, enter "O". . Use the tax rate schedules included with this problem. When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar. 1 101,000 2b 1,500 3b 1 Wages, salaries, tips, etc. Attach Form() W-2. table interest. Attach Sch. 2a Tax-exempt interest 2a 1,000 if required 3a Qualified dividends... Ordinary dividends. Attach 3 Sch. Bit required $IRA distributions 40 Dacable amount Pensions and annuities 4e d Taxable amount Sa Social security benefits Taxable amount 6 Capital gain or loss). Attach Schedule Dif required. If not required, check here. 7a Other income from Schedule 1, line 9 4 d Sb Standard Deduction for - Single or Married filing separately. $12,200 Married filing Jointly of Qualifying widower). $24.400 Head of household $18,350 If you checked any box under Standard Deduction, see Instructions 6 7a 600 7 103,100 5.000 b Addlines 1, 2, 3, 4, 4, 5, 6, and 7a. This is your total income 80 Adjustments to Income from Schedule 1. line 22 b Subtract lines from line 70. This is your adjusted gross income Standard deduction or itemized deductions from Schedule A) 10 Qualified business Income deduction. Attach Form 1915 or Form 1995 A 10 Bb 98,100 9 9 24,400 112 Addnes 9 and 10 110 24.400 Taxable income. Subtract line la from line Sb. If zero or less enter 0 115 23. 200 Check My Work 1 2014 2/9/20 128 Tax (see inst.) Check if any from Form(s): 108814 2 04972 30 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 3,000 b Add Schedule 3, line 7, and line 13a and enter the total 13b X 14 Subtract line 13b from line 12b. If zero or less, enter 0- 14 15 16 16 12 5,700 If you have a qualifying child, attach Sch. EIC. If you have nontaxable combat pay, see Instructions 15 Other taxes, including self-employment tax, from Schedule 2. line 10 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Forms W-2 and 1099 18 Other payments and refundable credits: a Earned Income credit (EIC). 18a b Additional child tax credit. Attach Schedule 8812 185 American opportunity credit from Form 3863, line 8 186 d Schedule 3, line 14 180 e Add lines 18a through 18d. These are your total other payments and refundable Credits 180 19 Add lines 17 and 1 Be. These are your total payments 19 5,700 19 Add lines 17 and 18e. These are your total payments ....... 19 5,700 Refund 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 20 21a Direct deposit? Routing number c Type: Checking a Savings See instructions. d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount Amount you owe. Subtract line 19 from line 16. For details on how to pay, see Instructions 23 You Owe 24 Estimated tax penalty (see instructions) 24 Third Party Do you want to allow another person (other than your paid preparer) to discuss this return with D Yes. Complete below. the IRS? See instructions. No Designee (Other than Designee's Phone Personal Identification paid preparer) name - no. number (PIN) Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and Sign to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than Here taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Joint return Protection PIN anterior