Lance H. and Wanda 8. 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) 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) $101,000 $1,000 1,100 400 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 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 bus, Roadrunner Touring 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. 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 300 500 6,300 Contribution to the reelection campaign fund of the mayor of Santa Fe Funeral expenses for Wayne Boyle 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 "0". 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. Form 1040 Complete Form 1040 below for Lance and Wanda Dean. Form Department of the Treasury-Internal Revenue Service (99) 1040 U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 IRS Use Only Filing Status Your first name and middle initial Lance H. Dean Last name If joint return, spouse's first Last name Your social security number 123-45-6786 Spouse's social security number 123-45-6787 name and middle initial Wanda B. Dean Home address (number and street). If you have a P.O. Apt. no. box, see instructions. 431 Yucca Drive Presidential Election Campaign Check here if you, or your spouse if filing jointly, want: City, town or post office, state, and ZIP code. If you have a foreign this fund. Checking a box below will not change your ta address, also complete spaces below (see instructions). Santa Fe, NM 87501 Foreign country name Foreign Foreign If more than four dependents, see instructions and h province/state/county postal code Standard Deduction Soma Use the 2019 Tax Rate Schedules to compute the tax. (Note: Because the tax rate schedules are used instead of the tax tables, the amount of tax computed may vary slightly from the amount listed in the tables.) 2019 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable income is: Over- But not of the amount If taxable of the income is: But not amount over- The tax is: over- Over- $0 $ 9,700 9,700 39,475 ......10% $970.00 + 12% $ 0 9,700 39,475 84,200 84,200 160,725 160,725 204,100 204,100 510,300 510,300 4,543.00 + 22% 14,382.50 + 24% 32,748.50 + 32% 46,628.50 + 35% 153,798.50 + 37% 39,475 84,200 over- $ 0 $ 13,850 13,850 52,850 52,850 84,200 84,200 160,700 The tax is: over- 10% ***** $0 $1,385.00 + 12% 13,850 6,065.00 +22% 52,850 12,962.00 + 24% 84,200 160,725 160,700 204,100 31,322.00 + 32% 160,700 204,100 510,300 204,100 510,300 510,300 45,210.00 + 35% 204,100 152,380.00 + 37% 510,300 Married filing jointly or Qualifying widow(er)-Schedule Y- Married filing separately-Schedule Y-2 1 If taxable income is: But not of the amount If taxable of the Over- over- The tax is: over- income is: But not Over- amount $0 $ 19,400 ...... 10% 19,400 78,950 78,950 168,400 168,400 321,450 $1,940.00 + 12% 9,086.00 +22% 28,765.00 + 24% $ 0 19,400 78,950 168,400 321,450 408,200 408,200 612,350 612,350 ****** 65,497.00 + 32% 93,257.00 + 35% 164,709.50 + 37% 321,450 408,200 612,350 over- $0 $9,700 9,700 39,475 39,475 84,200 84,200 160,725 160,725 204,100 204,100 306,175 306,175 The tax is: over- 10% $ 0 $970.00+12% 9,700 4,543.00 +22% 14,382.50 +24% 32,748.50 + 32% 46,628.50 + 35% 204,100 39,475 84,200 160,725 82,354.75 + 37% 306,175 ore Check My Work uses remaining