Please only leave the answers for the boxes with X's.

Note: This problem is for the 2018 tax year. 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 had 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 Child support payments from John Allen Annual gifts from parents Settlement from Roadrunner Touring Company Lottery winnings Federal income tax refund (for tax year 2017) 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 2018: Medical expenses (not covered by insurance) $7,200 Wayne Boyle (age 75) 123-45-6785 06/15/1943 Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, 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, 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. Required: Determine the Federal income tax for 2018 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 want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. 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 2018 OMB No. 1545-0074 IRS Use Only Filing status: Last name Your first name and initial Lance H. Dean Your social security number 123-45-6786 Your standard deduction: Wanda B. Dean 123-45-6787 Spouse standard deduction: Someone can claim your spouse as a dependent Spouse was born before January 2, 1954 Spouse is blind Spouse itemizes on a separate return or you were dual- status alien Full-year health care coverage or exempt (see inst.) Apt. no. Home address (number and street). If you have a P.O. box, see instructions. 431 Yucca Drive Presidential Election Campaign (see inst.) City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. Santa Fe, NM 87501 If more than four dependents, see inst. and here (2) Social security number (3) Relationship to you (4) Vif qualifies for (see inst.): Dependents (see instructions): (1) First name Last name Child tax credit Credit for other dependents Penny Allen 123-45-6788 Child Kyle Allen 123-45-6780 Child 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 preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation Manager If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Joint return? See instructions. Keep a copy for your records. Spouse's signature. If a joint Date return, both must sign. Spouse's occupation Paralegal If the IRS sent you an Identity Protection PIN, enter it here Paid Preparer's name PTIN Firm's EIN Check if: Preparer's signature Self-Prepared Preparer Use Only . 3rd Party Designee Self-employed Firm's name Phone no. Firm's address BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2018) Form 1040 (2018) Lance H. and Wanda B. Dean 123-45-6786 Page 2 1 101,000 2a 26 1,500 3b 4a Wages, salaries, tips, etc. Attach Form(s) W-2.... Tax-exempt interest 1,000 1,000 b Taxable interest Qualified dividends b Ordinary dividends IRAS, pensions, and b Taxable amount annuities Social security benefits b Taxable amount Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 103,500 X ...... Attach Form(s) W- 2. Also attach Form(s) W-2G and 1099-R if tax was withheld. 46 5a 5b 6 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6. 103,100 Standard 8 Standard deduction or itemized deductions (from Schedule A) ......... 17,400 x 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here ......... Direct deposit? b Routing number c Type: Checking Savings See instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax ....... Lax . . . . . . . . . . . . . . . . . . Amount + 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions ....... Estimated tax penalty (see instructions)..... | ruu uwe 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2018) Schedule 1 Complete Schedule A for Lance and Wanda Dean for 2018. OMB No. 1545-0074 Additional Income and Adjustments to Income SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service 2018 Attachment Sequence No. 01 Attach to Form 1040. Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 Lance H. and Wanda B. Dean Your social security number 123-45-6786 Additional 1-9b 1-9b Reserved ........ 10 Taxable refunds, credits, or offsets of state and local income taxes ...... Income 10 11 12 13 Alimony received ......... Business income or loss). Attach Schedule C or C-Ez ............... Capital gain or loss). Attach Schedule D if required. If not required, check here 14 14 Other gains or losses). Attach Form 4797 ........ 15a Reserved ................. 15b 16a Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E............................................. 18 Farm income or loss). Attach Schedule F ..................... 18 19 Unemployment compensation .............. 19 20a Reserved ........................ . . 20b 21 Other income. List type and amount Lottery Winnings 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 22 Adjustments 23 Educator expenses ....... 23 Adjustments 23 Educator expenses ........ to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 Health savings account deduction. Attach Form 8889 ........... 27 Moving expenses for members of the Armed Forces. Attach Form 3903........... Deductible part of self-employment tax. Attach Schedule SE........ 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction .... 30 Penalty on early withdrawal of savings ..... 31a Alimony paid b Recipient's SSN 29 30 32 IRA deduction ...... 33 34 33 Student loan interest deduction ......... 34 Reserved ......................... 35 Reserved .................. 36 Add lines 23 through 35 ........ 35 36 60,700 BAA For Paperwork Reduction Act Notice. see your tax return instructions Schedule 1 (Form 1040) 2018 Note: This problem is for the 2018 tax year. 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 had 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 Child support payments from John Allen Annual gifts from parents Settlement from Roadrunner Touring Company Lottery winnings Federal income tax refund (for tax year 2017) 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 2018: Medical expenses (not covered by insurance) $7,200 Wayne Boyle (age 75) 123-45-6785 06/15/1943 Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, 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, 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. Required: Determine the Federal income tax for 2018 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 want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. 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 2018 OMB No. 1545-0074 IRS Use Only Filing status: Last name Your first name and initial Lance H. Dean Your social security number 123-45-6786 Your standard deduction: Wanda B. Dean 123-45-6787 Spouse standard deduction: Someone can claim your spouse as a dependent Spouse was born before January 2, 1954 Spouse is blind Spouse itemizes on a separate return or you were dual- status alien Full-year health care coverage or exempt (see inst.) Apt. no. Home address (number and street). If you have a P.O. box, see instructions. 431 Yucca Drive Presidential Election Campaign (see inst.) City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. Santa Fe, NM 87501 If more than four dependents, see inst. and here (2) Social security number (3) Relationship to you (4) Vif qualifies for (see inst.): Dependents (see instructions): (1) First name Last name Child tax credit Credit for other dependents Penny Allen 123-45-6788 Child Kyle Allen 123-45-6780 Child 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 preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Here Your signature Date Your occupation Manager If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Joint return? See instructions. Keep a copy for your records. Spouse's signature. If a joint Date return, both must sign. Spouse's occupation Paralegal If the IRS sent you an Identity Protection PIN, enter it here Paid Preparer's name PTIN Firm's EIN Check if: Preparer's signature Self-Prepared Preparer Use Only . 3rd Party Designee Self-employed Firm's name Phone no. Firm's address BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040 (2018) Form 1040 (2018) Lance H. and Wanda B. Dean 123-45-6786 Page 2 1 101,000 2a 26 1,500 3b 4a Wages, salaries, tips, etc. Attach Form(s) W-2.... Tax-exempt interest 1,000 1,000 b Taxable interest Qualified dividends b Ordinary dividends IRAS, pensions, and b Taxable amount annuities Social security benefits b Taxable amount Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 103,500 X ...... Attach Form(s) W- 2. Also attach Form(s) W-2G and 1099-R if tax was withheld. 46 5a 5b 6 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6. 103,100 Standard 8 Standard deduction or itemized deductions (from Schedule A) ......... 17,400 x 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here ......... Direct deposit? b Routing number c Type: Checking Savings See instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax ....... Lax . . . . . . . . . . . . . . . . . . Amount + 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions ....... Estimated tax penalty (see instructions)..... | ruu uwe 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2018) Schedule 1 Complete Schedule A for Lance and Wanda Dean for 2018. OMB No. 1545-0074 Additional Income and Adjustments to Income SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service 2018 Attachment Sequence No. 01 Attach to Form 1040. Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 Lance H. and Wanda B. Dean Your social security number 123-45-6786 Additional 1-9b 1-9b Reserved ........ 10 Taxable refunds, credits, or offsets of state and local income taxes ...... Income 10 11 12 13 Alimony received ......... Business income or loss). Attach Schedule C or C-Ez ............... Capital gain or loss). Attach Schedule D if required. If not required, check here 14 14 Other gains or losses). Attach Form 4797 ........ 15a Reserved ................. 15b 16a Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E............................................. 18 Farm income or loss). Attach Schedule F ..................... 18 19 Unemployment compensation .............. 19 20a Reserved ........................ . . 20b 21 Other income. List type and amount Lottery Winnings 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 22 Adjustments 23 Educator expenses ....... 23 Adjustments 23 Educator expenses ........ to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 Health savings account deduction. Attach Form 8889 ........... 27 Moving expenses for members of the Armed Forces. Attach Form 3903........... Deductible part of self-employment tax. Attach Schedule SE........ 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction .... 30 Penalty on early withdrawal of savings ..... 31a Alimony paid b Recipient's SSN 29 30 32 IRA deduction ...... 33 34 33 Student loan interest deduction ......... 34 Reserved ......................... 35 Reserved .................. 36 Add lines 23 through 35 ........ 35 36 60,700 BAA For Paperwork Reduction Act Notice. see your tax return instructions Schedule 1 (Form 1040) 2018