Requirements:

You will file 2022 Federal income tax return (treat all info as for year 2022 not year 2021).

Ignore the last paragraph of the tax return problem info (it does not apply to 2022, the book was still on tax year 2021)

file Form 1040 and Sch. 1 (do not need Schedule A because they use standard deduction)

Check Figures: AGI is $98100; taxable income $72200; Calculated tax: 8253; child and/or dependent credit is $3000; a tax refund of $447.

It is fine If you have a few dollars difference due to rounding.

Problem:

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, while Wanda is employed part-time as a paralegal for a law firm.

During 2021, the Deans had the following receipts:

Salaries, 60,000 dollars for Lance, 42,000 dollars for Wanda. 102,000 dollars. Interest income. City of Albuquerque general purpose bonds. 1,000 dollars. Ford Motor Company bonds. 1,100 dollars. Ally Bank certificate of deposit. 400 dollars. Total 2,500 dollars. Child support payments from John Allen. 7,200 dollars. Annual gifts from parents. 26,000 dollars. Settlement from Roadrunner Touring Company 90,000 dollars. Lottery winnings. 600 dollars. Federal income tax refund, for tax year 2020. 400 dollars.

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 supportthe 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. As 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 2021: Medical expenses, not covered by insurance. 7,200 dollars. Taxes. Property taxes on personal residence 3,600 dollars. State of New Mexico income tax, includes amount withheld from wages during 2018. 4,200 dollars. Total 7,800 dollars. Interest on home mortgage, first National Bank. 6,000 dollars. Charitable contributions. 3,600 dollars. Life insurance premiums, policy on Lance's life. 1,200 dollars. Contributions to traditional IRA, on Wanda's behalf. 5,000 dollars. Traffic fines. 300 dollars. Contribution to the reelection campaign fund of the mayor of Santa Fe. 500 dollars. Funeral expenses for Wayne Boyle. 6,300 dollars.

The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employers pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.

The Deans household includes the following, for whom they provide more than half of the support:

Social Security Number Birth Date Lance Dean (age 42) 123-45-6786 12/16/1979 Wanda Dean (age 40) 123-45-6787 08/08/1981 Penny Allen (age 19) 123-45-6788 10/09/2002 Kyle Allen (age 16) 123-45-6789 05/03/2005 Wayne Boyle (age 75) 123-45-6785 06/15/1946

Penny graduated from high school on May 9, 2021, and is undecided about college. During 2021, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wandas widower father, who died on January 20, 2021. For the past few years, Wayne qualified as a dependent of the Deans.

Federal income tax withheld is $3,900 (Lance) and $1,800 (Wanda). The proper amount of Social Security and Medicare tax was withheld. The Deans received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored.

Determine the Federal income tax for 2021 for the Deans on a joint return by completing the appropriate forms. They do not own and did not use any virtual currency during the year, and they do not want to contribute to the Presidential Election Campaign Fund. If an overpayment results, it is to be refunded to them. Suggested software: ProConnect Tax. Note: For 2021, non-itemizers may deduct up to $300 of cash charitable contributions (see text Section 10-4d).

Lance H. and Wanda B. Dean are married and live at 431 ProConnect" Tax Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm. 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. As 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 2021 : The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution. The Deans' household includes the following, for whom they provide more than half of the support: The Deans' household includes the following, for whom they provide more than half of the support: Penny graduated from high school on May 9, 2021, and is undecided about college. During 2021, 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 January 20 , 2021. For the past few years, Wayne qualified as a dependent of the Deans. Federal income tax withheld is $3,900 (Lance) and $1,800 (Wanda). The proper amount of Social Security and Medicare tax was withheld. The Deans received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. Determine the Federal income tax for 2021 for the Deans on a joint return by completing the appropriate forms. They do not own and did not use any virtual currency during the year, and they do not want to contribute to the Presidential Election Campaign Fund. If an overpayment results, it is to be refunded to them. Suggested software: ProConnect Tax. Note: For 2021, non-itemizers may deduct up te $300 of cash charitable contributions (see text Section 10-4d)