Question
Ray and Maria Gomez have been married 3 years. They live at 1610 Quince Ave., McAllen, TX 78701. Ray works for Palm Oil Corporation and
Ray and Maria Gomez have been married 3 years. They live at 1610 Quince Ave., McAllen, TX 78701. Ray works for Palm Oil Corporation and Maria works for the City of McAllen. Maria's Social Security number is 444-65-9912 and Ray's is 469-21-5523. Ray and Maria's earnings and income tax withheld for 2015 are:
Ray: earnings from Palm Oil Corp. 30,120
federal income tax witheld 4,320
state income tax witheld 0
Maria: Earnings from the City of McAllen 32,050
Federal income tax witheld 5,200
State income tax witheld 0
Ray and Maria have interest income of $603 from a savings account at McAllen State Bank. In addition, they own U.S. Savings bonds (Series EE). The bonds had a value of $10,000 on January 1, 2015, and their value is $10,700 on December 31, 2015. They have not made an election with respect to these bonds.
Ray has an ex-wife named Judy Gomez. Pursuant to their divorce decree, Ray pays her $450 per month in alimony. All payments were made on time in 2015. Judy's Social Security number is 566-74-8765.
During 2015, Ray was in the hospital for a successful operation. His health insurance company reimbursed Ray $4,732 for all of his hospital and doctor bills.
In June 2015, Maria's father died. Under a life insurance policy owned and paid for by her father, Maria was paid death benefits of $25,000.
Maria bought a Texas lottery ticket on impulse during 2015. Her ticket was lucky and she won $4,000. The winning amount was paid to Maria in November 2015, with no income tax withheld.
Palm Oil Corporation provide Ray with a company car to drive while he is working. The Corporation spent $5,000 to maintain this vehicle during 2015. Ray never uses the car for personal purposes.
Required: Complete the Gomez's federal tax return for 2015. Use 1040 Form. Make realistic assumptions about any missing data.
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