Question
Ray has an ex-wife named Judy Gomez. Pursuant to their January 27, 2015 (pre-2019) divorce decree, Ray pays her $450 per month in alimony. All
Ray has an ex-wife named Judy Gomez. Pursuant to their January 27, 2015 (pre-2019) divorce decree, Ray pays her $450 per month in alimony. All payments were made on time in 2020. Judy's Social Security number is 566-74-8765.
During 2020, 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 2020, 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 2020. Her ticket was lucky and she won $4,432. The winning amount was paid to Maria in November 2020, 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 2020. Ray never uses the car for personal purposes.
Ray and Maria received a $2,400 EIP in 2020.
Required: Complete the Gomez's federal tax return for 2020 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.
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