Tax Return #1 Ruben and Roxanne Rivera

Use the following information to complete Ruben and Roxanne Riveras 2019 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps.

For this first tax return assignment, I will tell you what forms you will need. You need the following forms to complete this tax return: Form 1040, Schedule 1, Schedule A, and Schedule B. The forms, schedules, and instructions can be found in the Blackboard course under instructor resources or at the IRS web site (www.irs.gov). The instructions for the forms can be helpful and can be found on the IRS web site.

Ruben and Roxanne Rivera are married and have one child, Rudy, who is 19. Rudy is currently working at EP Fitness and earned $7,800 from personal training. He is attending UTEP full time, lives at home with his parents, and plans to graduate with a degree in nursing. The Riveras also support Roxannes father, Ben who lives in a small apartment down the street. Ben earns $10,000 a year from Home Depot and Roxanne pays most of his bills (food, rent, etc) for $2,000 per month. Ruben works as an engineer for the Airport Design, Inc (see W-2 information). Ruben also won $3,500 in a golf tournament at Painted Dunes. Roxanne is a nurse practitioner and works at Eastern Urgent Care (see W-2 information). She was unemployed earlier in the year and received $2,989 of unemployment compensation. Ruben and Roxanne own their home and pay interest on their home loan (balance of $322,000, original loan was on 12/2/2015 for $398,000) and a personal loan to pay for two other cars they own for $39,000. Ruben and Roxanne want to file either married filing jointly or married filing separately, whichever is best for tax purposes. Based on this information and the information below, prepare Ruben and Roxannes 2019 Federal tax return.

The Riveras do not want to contribute to the presidential election campaign.

The Riveras live at 112 Nueces Ave, El Paso, TX 79922

Rubens birthday is 9/2/1975 and his Social Security number is 544-21-4569

Roxannes birthday is 12/2/1979 and her Social Security number is 542-47-1217

Rudys birthday is 6/1/2000 and his Social Security number is 553-44-1995

Ben Solis birthday is 10/4/1956 and his Social Security #is 522-73-9004

The Riveras do not have any foreign bank accounts or trusts

Do not consider AMT tax for this tax return

A $500 credit is available for dependents claimed on the tax return over 18 years old

The Riveras have summarized the income and expenses they expect to report this year as follows: Income Rubens W2 Information: Salary $ 72,822

Federal income tax withheld 8,700

State income tax withheld 0

Social Security tax withheld 4,515

Medicare tax withheld 1,056

Roxannes W2 Information: $ 43,240

Federal income tax withheld 5,575

State income tax withheld 0

Social Security tax withheld 2,681

Medicare tax withheld 627

Interest income from bank account at Bank of America 1,450

Ordinary Dividend income from Epipen Stock 2,075

Tax exempt interest income from Ft Stockton City municipal bond funds 979

Expenditures: Sales taxes paid in 2019 (Ruben keeps receipts) 1,250

Real estate taxes paid on residence 10,006

Automobile license tax (based on weight) 320

Home mortgage interest paid 17,002

Interest paid on Discover Credit Card 422

Interest paid on loan for autos 3,275

Medical Expenses (unreimbursed) 12,086

Roxannes Medical Prescriptions 1,325

Rudys computer for school 1,699

Tax Preparation fees 1,200

Cash contributions to Beto ORourke election campaign 1,050

Cash contributions to the Rescue Mission (Ruben has receipts) 2,150