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, while Wanda is employed part-time as a paralegal for a law firm.

During 2016, the Deans recorded 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 2015)				400

Wanda previously was 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 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. As 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 2016 expenditures.

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 2015)		4,200		7,800
Interest on home mortgage				6,000
Paid church pledge				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 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	12/16/1974
Wanda Dean (age 40)	123-45-6787	08/08/1976
Penny Allen (age 19)	123-45-6788	10/09/1997
Kyle Allen (age 17)	123-45-6789	05/03/1999
Wayne Dean (age 75)	123-45-6785	06/15/1941

Penny graduated from high school on May 9, 2016, 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 Lance's widower father who died on January 20, 2016. For the past few years, Wayne qualified as a dependent of the Deans.

Federal income tax withheld is $5,200 (Lance) and $3,100 (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 2016.

Required:

Determine the 2016 Federal income tax for the Deans on a joint return by completing the appropriate forms. Use Form 1040 and Schedule A to complete this tax return. 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 "0".

When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar