Prepare income tax return for the couple?

Olga and Emmitt Mulle are married and file a joint return. Their Social Security numbers are 123-45-8068 and 111-11-8069, respectively. Olgas birthday is September 15, 1967 and Emmitts is June 15, 1966. They live at 2900 Bedford Avenue, Brooklyn, NY, 11210. Olga is a nurse at Brooklyn Hospital, 121 Dekalb Avenue, Brooklyn, NY 11201 (employer ID number 98-7654333). Emmitt is the manager of Flatbush Theatre owned and operated by Weiser Corporation, 429 Nostrand Avenue, Brooklyn, NY 11221 (employer ID number 47-7654222). The following information is shown on their Wage and Tax Statements (Form W-2) for 2015.

Line	Description	Olga	Emmitt
1	Wages, tips, other compensation	$65,000	$65,000
2	Federal income tax withheld	6,000	6,400
3	Social Security Wages	65,000	65,000
4	Social Security tax withheld	4,030	4,030
5	Medicare wages and tips	65,000	65,000
6	Medicare tax withheld	943	943
15	State	NY	NY
16	State wages, tips, etc.	65,000	65,000
17	NY State income tax withheld	3,300	3,200

The Mulles provide over half of the support of their children, Malika (born April 20, 1991, Social Security number 123-45-8001) and Jay (born February 27, 1994, Social Security number 123-45-8011). Both children are full-time students at Brooklyn College and live with their parents. In 2015 Malika earned $3,950 from a summer job, and Jay earned $3,900 working at an accounting firm. During 2015 the Mulles provided 65% of the total support of Emmitts widower father, Erald Mulle (born March 6, 1938, Social Security number 123-45-7654). Erald lived alone and covered the rest of his support with his Social Security benefits. Erald died on September 15 and Emmitt was the beneficiary of Eralds life insurance policy; Emmitt received $400,000 from the life insurance policy on November 15, 2015.

The Mulles had the following expenses relating to their home in 2015:

NY City Real Estate Tax (ad valorem tax) $5,600

Mortgage interest (home acquisition) $11,000

NY City Water bills (based on water use) $1,000

Heat and Electric bills $4,100

Homeowners insurance premium $1,500

The Mulles had the following medical expenses during the taxable year:

Medical insurance premiums $4,800

Doctor bill for Erald incurred in 2014 but paid in 2015 $7,500

Operation for Erald $8,000

Prescription medicines for Erald $500

Hospital expenses for Erald $3,000

Reimbursement from insurance company, received in 2015 $3,500

The medical expenses for Erald represent most of the 65% that Emmitt contributed toward his fathers support.

Additional information:

In 2015 the taxpayers paid $2,000 in union dues and they also paid an accountant $500 to prepare their tax return.

Olga and Emmitt each contributed $3,000 in 2015 to their traditional Individual Retirement Accounts (IRAs). Neither Olga nor Emmitt is covered by a retirement plan at their job.

When they filed their 2014 NY State income tax return in 2015 the Mulles were entitled to a $700 refund from the state which they received in April 2015. The Mulles did not itemize deductions on their 2014 form 1040.

The Mulles contributed $5,000 to the Brooklyn College Foundation, a qualified charity. They also contributed used furniture to the Salvation Army (cost of $1,400 and fair market value of $400). The furniture was in good condition and all contributions are receipted.

The Mulles received $1,100 of interest income from Citibank, which was reported on form 1099-INT.

The Mulles received $9 of interest on an interest-bearing checking account at Island Federal Credit Union. They did not receive a 1099-INT from the credit union.

The Mulles own NY City bonds and received $1,000 of interest on the bonds this year. They received a 1099-INT for this interest and the $1,000 was reported in box 8 of the 1099-INT.

The Mulles own some Microsoft stock on which they received $600 of dividends, which was reported on form 1099-DIV. The 1099-DIV (box 1b) indicates that all of the dividends were qualified.

When Erald died he owned 200 shares of Peach Corporation for which he had paid $10 per share on February 15, 2001. When Erald died the stock was worth $100 per share. Emmitt inherited the stock and sold it on December 15, 2015 for $80 per share. Emmitt received a 1099-B that reported the selling price but the stock basis was not reported to the IRS.

On July 5, 2005 Olgas mother gave Olga some stock in Banana Corporation for which her mother had paid $45 per share on January 10, 2003. The stocks market value was $35 per share on July 5, 2005. On June 30, 2015 Olga sold the stock (100 shares) for $27 per share. Olga received a 1099-B that reported the selling price but the stock basis was not reported to the IRS.

The Mulles do not keep receipts for sales taxes they paid and had no major purchases subject to sales tax.

All members of the family had health insurance coverage for all of the year.

The Mulles do not want to designate $3 to the Presidential Election Campaign Fund.