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 2018, the Deans recorded the following receipts. Computing the Deans receipts. The entry is on the left, and the amounts are listed in two columns. The line entries and the corresponding amounts are as follows. Line 1. Salaries, $60,000 for Lance, $41,000 for Wanda. $101,000 in the second column. Line 2. Interest income. Line 3, indented. City of Albuquerque general purpose bonds. $1,000 in the first column. Line 4, indented. Ford Motor Company bonds. 1,100 in the first column. Line 5, indented. Ally Bank certificate of deposit. 400 in the first column, underlined, and 2,500 in the second column. Line 6. Child support payments from John Allen. 7,200 in the second column. Line 7. Annual gifts from parents. 26,000 in the second column. Line 8. Settlement from Roadrunner Touring Company. 90,000 in the second column. Line 9. Lottery winnings. 600 in the second column. Line 10. Federal income tax refund, for tax year 2017. 400 in the second column. Wanda previously was married to John Allen. When they divorced in 2013, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child supportthe 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 bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred to her $90,000 cash in settlement of the personal injuries she sustained. The Deans made the following 2018 expenditures. Computing the Deans expenditures. The entry is on the left, and the amounts are listed in two columns. The line entries and the corresponding amounts are as follows. Line 1. Medical expenses, not covered by insurance. $7,200 in the second column. Line 2. Taxes. Line 3, indented. Property taxes on personal residence. $3,600 in the first column. Line 4, indented. State of New Mexico income tax, includes amount withheld from wages during 2018. 4,200 in the first column, underlined, and 7,800 in the second column. Line 5. Interest on home mortgage, First National Bank. 6,000 in the second column. Line 6. Charitable contributions. 3,600 in the second column. Line 7. Life insurance premiums, policy on Lances life. 1,200 in the second column. Line 8. Contributions to traditional I R A, on Wandas behalf. 5,000 in the second column. Line 9. Traffic fines. 300 in the second column. Line 10. Contribution to the reelection campaign fund of the mayor of Santa Fe. 500 in the second column. Line 11. Funeral expenses for Wayne Boyle. 6,300 in the second column. 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 employers 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 Dean 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 12/16/1976 Wanda Dean (age 40) 123-45-6787 08/08/1978 Penny Allen (age 19) 123-45-6788 10/09/1999 Kyle Allen (age 16) 123-45-6780 05/03/2002 Wayne Dean (age 75) 123-45-6785 06/15/1943 Penny graduated from high school on May 9, 2018, and is undecided about college. This year, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Lances widower father who died on December 20, 2017. For the past few years, Wayne qualified as a dependent of the Deans. Federal income tax withheld is $4,200 (Lance) and $2,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld. All members of the family were covered by health insurance for all of 2018. Determine the 2018 Federal income tax for the Deans on a joint return by completing the appropriate forms. They do not want to contribute to the Presidential Election Campaign Fund. If an overpayment results, it is to be refunded to them. Suggested software: ProConnect Tax Online.

Also, Ally bank deposit is $500

and: ignore all information in the problem relating to the Deans expenditures (i.e., the information beginning with Medical Expenses of $7,200 and ending with funeral expenses of $6,300). Total itemized deductions should be $0.

: The $5,000 contribution to a traditional IRA should be entered as an adjustment to income, rather than a source of income; adjustments to income can be found under Deductions. IF you can show it on pro connect that would be immensely helpful thank you