Ray and Maria Gomez have been married for 3 years. Ray is a propane salesman for Palm Oil Corporation and Maria works as a city clerk for the City of McAllen. Ray's birthdate is February 21, 1991 and Maria's is December 30, 1993. Ray and Maria each received a W-2 from their respective employers (see separate tab).

Ray and Maria have interest income from McAllen State Bank which is reported a 1099-INT form (see separate tab). In addition, they own U.S. Savings bonds (Series EE). The bonds had a value of $10,000 on January 1, 2019, and their value is $10,700 on December 31, 2019. They have not made an election with respect to these bonds.

Ray has an ex-wife named Judy Gomez. Pursuant to their January 27, 2014 (pre-2019) divorce decree, Ray pays her $450 per month in alimony. All payments were made on time in 2019. Judy's Social Security number is 566-74-8765.

During 2019, 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 2019, Maria's father died. Under a life insurance policy owned and paid for by her father, Maria was paid death benefits of $25,000. She used $7,800 to cover a portion of the funeral costs for her father.

Maria bought a Texas lottery ticket on impulse during 2019. Her ticket was lucky and she won $4,025. The winning amount was paid to Maria in November 2019, with no income tax withheld.

Palm Oil Corporation provides Ray with a company car to drive while he is working. The Corporation spent $5,000 to maintain this vehicle during 2019. Ray never uses the car for personal purposes.

Required: Complete the Gomez's federal tax return for 2019 on Form 1040 and Schedule 1. The Gomez's had health care coverage the entire year. They do not want to make a contribution to the presidential election campaign. Make any other realistic assumptions about any missing data. If an amount box does not require an entry or the amount is zero, enter "0". Enter amounts as positive numbers. If required, round amounts to the nearest dollar.

Ray and Maria's earnings are reported on the following Form W-2s: a Employee's social security number Safe, accurate, Visit the IRS website at OMB No. 1545-0008 IRS e n file 469-21-5523 FASTI Use www.irs.gov/efile b Employer identification number (EIN) 1 Wages, tips, other compensation 21-7654321 30,415.00 2 Federal income tax withheld 3,070.00 c Employer's name, address, and ZIP code Palm Oil Corporation 11134 E. Pecan Blvd. McAllen, TX 78501 3 Social security wages 30,415.00 5 Medicare wages and tips 30,415.00 7 Social security tips 4 Social security tax withheld 1,885.73 6 Medicare tax withheld 441.02 8 Allocated tips ld Control number 9 10 Dependent care benefits Last Suff. 11 Nonqualified plans 12a See instructions for box 12 name e Employee's first name and initial Ray Gomez 1610 Quince Avenue McAllen, TX 78701 o d e 12b 13 Statutory employee Retirement plan Third-party sick pay o d 14 Other 12c Ic o d e 12d c O d e |f Employee's address and ZIP code 15 State Employer's state ID 16 State wages, tips, 17 State income 18 Local wages, tips, 19 Local income 20 Locality number etc. tax etc. tax name TX Department of the Treasury-Internal Revenue Service Form W-2 Wage and Tax 2019 Statement Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. a Employee's social security number Safe, accurate, Visit the IRS website at OMB No. 1545-0008 IRS e - file 444-65-9912 FAST! Use www.irs.gov/efile b Employer identification number (EIN) 1 Wages, tips, other compensation 23-4444321 32,402.00 2 Federal income tax withheld 2,654.00 c Employer's name, address, and ZIP code City of McAllen 1300 W. Houston Ave. McAllen, TX 78501 3 Social security wages 32,402.00 5 Medicare wages and tips 32,402.00 7 Social security tips 4 Social security tax withheld 2,008.92 6 Medicare tax withheld 469.83 8 Allocated tips Id Control number 9 10 Dependent care benefits Last Suff. 11 Nonqualified plans 12a See instructions for box 12 name e Employee's first name initial Maria Gomez 1610 Quince Ave. McAllen, TX 78701 0 d e 12b 13 Statutory employee Retirement plan Third-party sick pay 10 D D O d e 14 Other 12c 0 d e 12d lo d If Employee's address and ZIP code 15 State Employer's state ID 16 State wages, tips, TX number etc. 17 State income 19 Local income 18 Local wages, tips, etc. 20 Locality name tax tax W-2 Statement Wage and Tax Department of the Treasury-Internal Revenue Service Form 2019 Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. Ray and Maria's Form 1099-INT Ray and Maria have interest income as reported on the following 1099-INT: CORRECTED (if checked) PAYER'S name, streel address, city Payer's RTN or town, state or province, country, OMB No. 1545-0112 (optional) ZIP or foreign postal code, and telephone no. Interest 2019 1 Interest Income income Form 1099-INT McAllen State Bank 3302 N. 10th Street McAllen, TX 78501 $ 673.12 2 Early withdrawal penalty Copy B PAYER'S TIN RECIPIENT'S TIN $ For Recipient 3 Interest on U.S. Savings Bonds and Treas. obligations 34- 444-65-9912 $ 7657651 4 Federal This is important tax information and is being furnished to the IRS. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. RECIPIENT'S name Maria Gomez 5 Investment expenses $ income tax withheld $ 6 Foreign tax paid 7 Foreign country or U.S. possession Street address (including apt. no.) 1610 Quince Avenue $ 8 Tax- exempt interest City or town, state or province, country, and ZIP or foreign postal code McAllen, TX 78701 9 Specified private activity bond interest $ $ 10 Market 11 Bond premium discount FATCA filing requirement $ $ 13 Bond 12 Bond premium on Treasury obligations $ premium on tax- exempt bond $ Form 1040 Complete the Gomez's Form 1040. Ray 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 Married filing jointly Your first name and middle initial Last name Your social security number Gomez 469-21-5523 If joint return, spouse's first name Last name Spouse's social security number and middle initial Gomez 444-65-9912 Maria Home address (number and street). If you have a P.O. Apt. no. box, see instructions Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this City, town or post office, state, and ZIP code. If you have a foreign fund. Checking a box below will not change your tax or refund. address, also complete spaces below (see instructions). None 1610 Quince Avenue Foreign country name Foreign Foreign If more than four dependents, see instructions and here McAllen, TX 78701 province/State/county postal code Standard Deduction Someone can claim: None You: None Age/Blindness Spouse: None Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for see instructions): (1) First name Last name Child tax credit Credit for other dependents D 1 Wages, salaries, tips, etc. Attach Form(s) W-2. 1 62,817 2a Tax-exempt interest .. 2a Taxable interest. Attach Sch. B if required 2b 673 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 62,817 2a Tax-exempt interest .. 2a 2b 673 b Taxable interest. Attach Sch. B if required b Ordinary dividends. Attach Sch. B if required 3a Qualified dividends ... 3a 3b 4a IRA distributions ..... 4a b Taxable amount 4b c Pensions and annuities 4c d Taxable amount 4d 5b 5a Social security benefits 5a b Taxable amount 6 Capital gain or loss). Attach Schedule D if required. If not required, check here ... 6 Standard Deduction for- Single or Married filing separately, $12,200 Married filing jointly or Qualifying widow(er), $24,400 Head of household, $18,350 If you checked any box under Standard Deduction, see Instructions. 7a Other income from Schedule 1, line 9 7 b Add lines 1, 2b, 3b, 45, 40, 5b, 6, and 7a. This is your total income 7b 8a Adjustments to income from Schedule 1, line 22.. 8 b Subtract line 8a from line 7b. This is your adjusted gross income 8b 9 9 Standard deduction or itemized deductions (from Schedule A).. Qualified business income deduction. Attach Form 8995 or Form 8995-A 10 10 11a Add lines 9 and 10 11a b Taxable income. Subtract line 11a from line 8b 11b For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2019) Form 1040 (2019) Page 2 12a Tax (see inst.) Check if any from Form(s): 1 08814 2 0 4972 30 12a b Add Schedule 2, line 3, and line 12a and enter the total 12b 13a Child tax credit or credit for other dependents ... 13a 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- 14 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 Other payments and refundable credits: a Earned income credit (EIC) 18a If you have a qualifying child, attach Sch. EIC. . If you have nontaxable combat pay, see instructions. b Additional child tax credit. Attach Schedule 8812 18b c American opportunity credit from Form 8863, line 8 18c d Schedule 3, line 14 18d 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 overpaid 20 21a Amount of line 20 you want refunded to you. If Form 8888 is attached, check here 21a 10 Educator expenses. 10 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE. 14 15 15 Self-employed SEP, SIMPLE, and qualified plans 16 Self-employed health insurance deduction 16 17 Penalty on early withdrawal of savings 17 18a Alimony paid 18a b Recipient's SSN Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 21 22 Reserved for future use. Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line 8a..... 22 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040 or 1040-SR) 2019