only question #1 involving the Lance and Wanda Dean.

Return Problems 1. 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, blem $101.000 while 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) $1,000 1,100 400 Interest income- City of Albuquerque general purpose bonds Ford Motor Company bonds Ally Bank certificate of deposit Child support payments from John Allen Annual gifts from parents Settlement from Roadrunner Touring Company Lottery winnings Federal income tax refund (for tax year 2018) 2,500 7,200 26,000 90,000 600 400 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 8332 waiver.) Under the divorce decree, John was obli- gated 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 Tour- ing Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained. CHAPTER 9 De had the following expends for 2014 57.100 a personal residence Nec 51.600 from wages during 2019 4300 one mortgage First National Park 7.300 6,000 mums policy on Lance 1600 12200 Canto traditional A (on Wanda's beha) 5.000 300 Co the reelection campaign fund of the 500 penses for Wayne Boyle 6300 The e insurance policy was taken out by Lance several years ago and destes as the beneficiary. As a part-time employee, Wanda is excluded from cover under her employer's pension plan. Consequently, she provides for her own iment with a traditional IRA obtained at a local trust company. Because the Cramember of the local Chamber of Commerce, Lance felt compelled to e political contribution ra Santa nie Dean' household includes the following for whom they provide more than of the support Deanlage 42 and Dean age 401 Aage 19 Alle tage 16 Boyle bage 750 Social Security Numbert Birth Date 123-45-6786 12/16/1977 123-45-6787 08/05/1979 123-45-6788 10/09/2000 123-45-6789 05/03/2003 123-45-6785 06/15/1944 privacy and to protect again taxpayer identification se focal Security tumewed out to have been replaced with fibers Peray 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 January 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 Determine the Federal income tax for 2019 for the Deans on a joint return by completing the appropriate forms. They do not own and did not use any virtual Currency during the year, and they do not want to contribute to the Presidential llection Campaign Fund. If an overpayment results, it is to be refunded to them. pested software ProConnect Tax Online Logan B Taylor is a widower whose wife, Sara, died on June 6, 2017. He lives at 4680 Dywood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law Im During 2019, he had the following receipts: $ 80,000 - De Co income $ 300 1,100 Money market account at Omnl Bank Savings account at Boone State Bank City of Springfield general purpose bonds 3,000 Whence from Daniel hence proceeds Tortfiom sale of St. Louis lot Photos from estate sale 4400 60,000 200,000 80,000 9,000 700 Per income tax refund (for 2018 tax overpayment xation of individuals Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2019 Daniel's life on May 2.2014, Logan also was the designated beneficiary of an insurance policy on with a maturity value of $200,000. The lot in St. Louis was purchased 511,500 for $85,000 and held as an investment. As the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2019, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (eg, camper, bol, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9.000 he received and has declined or stayed the same in value since Sara and Daniel died. Logan's expenditures for 2019 include the following: Medical expenses (including $10,500 for dental) Taxes- $4,200 State of Missouri income tax (includes withholdings during 2019) Property taxes on personal residence 4,500 Interest on home mortgage Contribution to church (paid pledges for 2019 and 2020) Although Logan and his dependents are covered by his employer's health insurance policy, he is subject to a deductible and dental care is not included. The $10,50 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2019, upon the advice of his pastor, he prepaid lies pledge for 2020. Logan's household, all of whom he supports, includes the following: 8.700 5.500 4.800 Social Security Number Birth Date Logan Taylor fage 48) 123-45-6787 08/30/1971 Helen Taylor (age 70) 123-45-6780 01/13/1949 Asher Taylor (age 23) 123-45-6783 07/18/1996 Mia Taylor (age 22) 123-45-6784 02/16/1997 Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married. Part 1 - Tax Computation Using the appropriate forms and schedules, compute Logan's income tax for 2019- Federal income tax of $4,500 was withheld from his wages. If Logan has ang overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes were withheld. Logan dos not own and did not use any virtual currency during the year, and he does are want to contribute to the Presidential Election Campaign Fund. Suggested software ProConnect Tax Online, Department of the Treasury Internal Revenue Service (99) 2019 OMB No. 1545-0074 IRS Use On-Do not write or table in this Filing Status Single Married ning jointly Married fing aparately (MFS) Head of household COM Qualifying widlowers com Check only If you checked the MFS box, enter the name of spone, you checked the HOH or ow box, enter the child's rame it the qualifying person is one box a child but not your dependent. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initiat Last name Spoune's social security number Home address number and street). If you have a P.O. box, toe instructions Apt.no Presidential Election Campaign Check here if you of your spouse fing intly want $3 to go to the fund City, town or pont office, state, and ZIP code. If you have a foreign address, also complete spaces below (soo instruction), Checking a box below will not change you Barrund You Spoune Foreign country name Foreign province/stata county Foreign postal code If more than four dependents see instructions and here Standard Someone can claim You as a dependent Your spouso as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You! Were born before January 2, 1965 Are blind Spouse Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number Relationship to you (if qualified for see instruction (1) Pastrame Last name Child tax credit Credit for other dependents 1 1 2b 3b 4b 4d 5b Wages, salarios, tips, ofe, Attach Formis) W-2 2a Tax-exempt interest 2a b Taxable interest. Attach Sch. Bit required Ja Standard 3 Qualified dividends b Ordinary dividends. Attach Sch. Bit required Deduction for 4a TRA distributions 40 b Taxable amount Single or Med Tring sprey G Pensions and annuities 40 d Taxable amount $12.200 Sa Social security benefits Ba Taxable amount Married ling 6 jointly or Duallying Capital gain or (03). Attach Schedule Dif required. If not required, check here widower 70 $24,400 Other income from Schedule 1, line 9. Head of b Add Ines 1, 2, 3, 4b, 4d, 56, 6, and 7a. This is your total income household $18.350 80 Adjustments to income from Schedule 1, line 22 . if you checked b Subtract line Ba from line 7b. This is your adjusted gross income any box under Standard Standard deduction or itemized deductions from Schedule 9 Oduction 10 10 bohuone Qualified business income deduction Attach Form 8995 or Form 0905-A 11a Add lines and 10 b Taxable income. Subtract line 11a from line. Bb. If zero or lose, entero For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, se separate instructions, Cat No. 11310n 0 70 7b ab 110 Form 1040 0019 Page 2 A 130 a b O Form 1040 (2019) 12a Tax (see inst.) Check if any from Fomisk 1 8814 2 4972 3 12a b Add Schedule 2, line 3, and line 128 and enter the total 12b 13a Child tax credit or credit for other dependents 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-O- 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 17 Federal income tax withheld from Forms W-2 and 1099 17 18 . If you have a Other payments and refundable credits: qualifying child Earned Income credit (EIC) 18a attach Sch. EC If you have Additional child tax credit. Attach Schedule 8812 185 nontaxable combat pay, se American opportunity credit from Form 1863, line 8 18c instructions d Schedule 3. line 14 180 e Add lines 18a through 18d. These are your total other payments and refundable credits 18e 19 Add lines 17 and 18e. These are your total payments 19 20 Refund If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpald 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a Direct deposi? Routing number Type: Checking Savings See instructions d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 Amount 23 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 retum with the IRS? See instructions. Yes. Complete below Designee No Other than Designee's Phone Personal identification paid preparen name no number (PIN) Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparar (other than taxpayer) is based on all information of which preparer has any knowledge Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst) Joint return? See instructions. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent your spouse an Keep a copy for Identity Protection PIN, enter it here your records see inst.) Phone no Email address Preparer's name Preparer's signature Date PTIN Check it Paid 3rd Party Designee Preparer Firm's name Phone no Self-employed Use Only Firm's address Firm's EIN Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 10402019 . Return Problems 1. 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, blem $101.000 while 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) $1,000 1,100 400 Interest income- City of Albuquerque general purpose bonds Ford Motor Company bonds Ally Bank certificate of deposit Child support payments from John Allen Annual gifts from parents Settlement from Roadrunner Touring Company Lottery winnings Federal income tax refund (for tax year 2018) 2,500 7,200 26,000 90,000 600 400 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 8332 waiver.) Under the divorce decree, John was obli- gated 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 Tour- ing Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained. CHAPTER 9 De had the following expends for 2014 57.100 a personal residence Nec 51.600 from wages during 2019 4300 one mortgage First National Park 7.300 6,000 mums policy on Lance 1600 12200 Canto traditional A (on Wanda's beha) 5.000 300 Co the reelection campaign fund of the 500 penses for Wayne Boyle 6300 The e insurance policy was taken out by Lance several years ago and destes as the beneficiary. As a part-time employee, Wanda is excluded from cover under her employer's pension plan. Consequently, she provides for her own iment with a traditional IRA obtained at a local trust company. Because the Cramember of the local Chamber of Commerce, Lance felt compelled to e political contribution ra Santa nie Dean' household includes the following for whom they provide more than of the support Deanlage 42 and Dean age 401 Aage 19 Alle tage 16 Boyle bage 750 Social Security Numbert Birth Date 123-45-6786 12/16/1977 123-45-6787 08/05/1979 123-45-6788 10/09/2000 123-45-6789 05/03/2003 123-45-6785 06/15/1944 privacy and to protect again taxpayer identification se focal Security tumewed out to have been replaced with fibers Peray 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 January 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 Determine the Federal income tax for 2019 for the Deans on a joint return by completing the appropriate forms. They do not own and did not use any virtual Currency during the year, and they do not want to contribute to the Presidential llection Campaign Fund. If an overpayment results, it is to be refunded to them. pested software ProConnect Tax Online Logan B Taylor is a widower whose wife, Sara, died on June 6, 2017. He lives at 4680 Dywood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law Im During 2019, he had the following receipts: $ 80,000 - De Co income $ 300 1,100 Money market account at Omnl Bank Savings account at Boone State Bank City of Springfield general purpose bonds 3,000 Whence from Daniel hence proceeds Tortfiom sale of St. Louis lot Photos from estate sale 4400 60,000 200,000 80,000 9,000 700 Per income tax refund (for 2018 tax overpayment xation of individuals Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2019 Daniel's life on May 2.2014, Logan also was the designated beneficiary of an insurance policy on with a maturity value of $200,000. The lot in St. Louis was purchased 511,500 for $85,000 and held as an investment. As the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2019, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (eg, camper, bol, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9.000 he received and has declined or stayed the same in value since Sara and Daniel died. Logan's expenditures for 2019 include the following: Medical expenses (including $10,500 for dental) Taxes- $4,200 State of Missouri income tax (includes withholdings during 2019) Property taxes on personal residence 4,500 Interest on home mortgage Contribution to church (paid pledges for 2019 and 2020) Although Logan and his dependents are covered by his employer's health insurance policy, he is subject to a deductible and dental care is not included. The $10,50 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2019, upon the advice of his pastor, he prepaid lies pledge for 2020. Logan's household, all of whom he supports, includes the following: 8.700 5.500 4.800 Social Security Number Birth Date Logan Taylor fage 48) 123-45-6787 08/30/1971 Helen Taylor (age 70) 123-45-6780 01/13/1949 Asher Taylor (age 23) 123-45-6783 07/18/1996 Mia Taylor (age 22) 123-45-6784 02/16/1997 Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married. Part 1 - Tax Computation Using the appropriate forms and schedules, compute Logan's income tax for 2019- Federal income tax of $4,500 was withheld from his wages. If Logan has ang overpayment on his income tax, he wants the refund sent to him. Assume that the proper amounts of Social Security and Medicare taxes were withheld. Logan dos not own and did not use any virtual currency during the year, and he does are want to contribute to the Presidential Election Campaign Fund. Suggested software ProConnect Tax Online, Department of the Treasury Internal Revenue Service (99) 2019 OMB No. 1545-0074 IRS Use On-Do not write or table in this Filing Status Single Married ning jointly Married fing aparately (MFS) Head of household COM Qualifying widlowers com Check only If you checked the MFS box, enter the name of spone, you checked the HOH or ow box, enter the child's rame it the qualifying person is one box a child but not your dependent. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initiat Last name Spoune's social security number Home address number and street). If you have a P.O. box, toe instructions Apt.no Presidential Election Campaign Check here if you of your spouse fing intly want $3 to go to the fund City, town or pont office, state, and ZIP code. If you have a foreign address, also complete spaces below (soo instruction), Checking a box below will not change you Barrund You Spoune Foreign country name Foreign province/stata county Foreign postal code If more than four dependents see instructions and here Standard Someone can claim You as a dependent Your spouso as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You! Were born before January 2, 1965 Are blind Spouse Was born before January 2, 1955 Is blind Dependents (see instructions): (2) Social security number Relationship to you (if qualified for see instruction (1) Pastrame Last name Child tax credit Credit for other dependents 1 1 2b 3b 4b 4d 5b Wages, salarios, tips, ofe, Attach Formis) W-2 2a Tax-exempt interest 2a b Taxable interest. Attach Sch. Bit required Ja Standard 3 Qualified dividends b Ordinary dividends. Attach Sch. Bit required Deduction for 4a TRA distributions 40 b Taxable amount Single or Med Tring sprey G Pensions and annuities 40 d Taxable amount $12.200 Sa Social security benefits Ba Taxable amount Married ling 6 jointly or Duallying Capital gain or (03). Attach Schedule Dif required. If not required, check here widower 70 $24,400 Other income from Schedule 1, line 9. Head of b Add Ines 1, 2, 3, 4b, 4d, 56, 6, and 7a. This is your total income household $18.350 80 Adjustments to income from Schedule 1, line 22 . if you checked b Subtract line Ba from line 7b. This is your adjusted gross income any box under Standard Standard deduction or itemized deductions from Schedule 9 Oduction 10 10 bohuone Qualified business income deduction Attach Form 8995 or Form 0905-A 11a Add lines and 10 b Taxable income. Subtract line 11a from line. Bb. If zero or lose, entero For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, se separate instructions, Cat No. 11310n 0 70 7b ab 110 Form 1040 0019 Page 2 A 130 a b O Form 1040 (2019) 12a Tax (see inst.) Check if any from Fomisk 1 8814 2 4972 3 12a b Add Schedule 2, line 3, and line 128 and enter the total 12b 13a Child tax credit or credit for other dependents 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-O- 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 17 Federal income tax withheld from Forms W-2 and 1099 17 18 . If you have a Other payments and refundable credits: qualifying child Earned Income credit (EIC) 18a attach Sch. EC If you have Additional child tax credit. Attach Schedule 8812 185 nontaxable combat pay, se American opportunity credit from Form 1863, line 8 18c instructions d Schedule 3. line 14 180 e Add lines 18a through 18d. These are your total other payments and refundable credits 18e 19 Add lines 17 and 18e. These are your total payments 19 20 Refund If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpald 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a Direct deposi? Routing number Type: Checking Savings See instructions d Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 Amount 23 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 retum with the IRS? See instructions. Yes. Complete below Designee No Other than Designee's Phone Personal identification paid preparen name no number (PIN) Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparar (other than taxpayer) is based on all information of which preparer has any knowledge Here Your signature Date Your occupation If the IRS sent you an Identity Protection PIN, enter it here (see inst) Joint return? See instructions. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent your spouse an Keep a copy for Identity Protection PIN, enter it here your records see inst.) Phone no Email address Preparer's name Preparer's signature Date PTIN Check it Paid 3rd Party Designee Preparer Firm's name Phone no Self-employed Use Only Firm's address Firm's EIN Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 10402019