Lance H. and Wanda E. Dean are man*ied and liye at 431 'r'ucca Driye, Santa Fe, NM ETSDI. Lance works for the conyention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law rm. During EDIE, the Deans had the following receipts: Salaries l$ED,DDD for Lance, $4I,DDD for Wanda} $1DI,DDD Interest income City of Albuquerque general purpose bonds $I,DDD Ferd Motor company bonds I,IDD Ally Bank certicate of deposit ADD E,SDD Child support payments from John Allen ?,EDD Annual gifts from parents EE,DDD Settlement fmm Roadrunner Touring Company IElID,DDlEI Lottery winnings EDD Federal income tax refund {for tax year EDIE} ADD Wanda was preyiously married to john Allen. When they diyorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Mote: Wanda has neyer issued a Form 333E waiyer.} 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 driyer was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses {including a one- weelc stay in a hospital}. To ayoid a lawsuit, Roadrunner also transferred $SD,DDD to her in settlement of the personal injuries she sustained. The Deans had the following expenditures for EDIE: Medical expenses [not covered by insurance} $?,EDD Taxes Property taxes on personal residence $3,EDD State of New Mexico income tax [includes amount withheld from wages during EDIE} 4,EDD T,EDD Interest on home mortgage [First National Eanlt} E,DDD Paid church pledge S,EDD Life insurance premiums [policy on Lance's life} I,EDD Contribution to traditional IRA ion Wanda's behalf} S,DDD 'li'afc fines EDD Contribution to the reelection campaign fund of the mayor of Santa Fe EDD Funeral expenses for Wayne Boyle E,SDD The life insurance policy was taken out by Lance seyeral years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coyerage under her employer's pension plan. Consequently, she proyides 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 Deansr household includes the following, for whom they proyide more than half of the support: Social Security Number Birth Date Lance Dean {age 42} IES-AE-EEEE IErIErISH Wanda Dean lage 4D} IES-4E-ETE? DEIDEIISEE Penny Allen (age 19} IES-ASETEE IDIDSIISE? K'yle Allen (age 1?} IES-AE-ETES DEIDSIIDSS Wayne Boyle lage TE} IEE-dE-ETEE DEl'IEl-'IDAI Penny graduated from high school on May S, EDIE, and is undecided about college. During EDIE, she earned $E,SDD [placed in a sayings account} playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on january ED, EDIE. For the past few years, Wayne qualified as a dependent of the Deans. Federal income tax withheld ls $S,EDD {Lance} and $3,1DD {Wanda}. The proper amount of Social Security and Medicare tax was withheld. Determine the Federal income tax for EDIE for the Deans on a joint return by completing the appropriate forms. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coyerage for all of EDIE. If an overpayment results, it is to be refunded to
