Tax Return Problem

Derek Zoolander is a widower whose wife, Matilda, died on October 16, 2014. He lives at 4801 Apple Lane, Saginaw, MI 48601. He is employed as a model. During 2016, he had the following receipts:

Salary		$92,000
Interest income-
Checking account at Community Bank	300
Savings account at Community Bank	1,100
City of Saginaw bonds	3,000	4,400
Inheritance from Hansel		50,000
Life insurance proceeds		200,000
Federal income tax refund from 2015 tax return		700

Derek inherited $50,000 of securities from his friend Hansel who died in 2016. He also was the designated beneficiary of an insurance policy on Hansels life. The proceeds were $200,000.

Dereks expenditures in 2016 include:

State income tax paid (includes withholdings during 2016)	$3,200
Home mortgage interest paid to Community Bank	4,700
Contribution to traditional IRA	5,000
Property taxes on home	4,000
Funeral expenses for Hansel	6,000
Charitable contributions to church	3,800
Medical expenses (including $10,000 for dental)	$11,500

Derek and his dependents are covered by his employers health insurance policy for all of 2016. However, he is subject to a deductible and dental care is not included. The $10,000 for dental is for Harriets dentures. Harriet is Dereks widowed mother, who lives with him (see below).

Dereks household, all of whom he supports 100%, includes the following:

	Social Security Number	Birth Date
Derek Zoolander	123-45-6787	08/30/1968
Harriet Zoolander (Dereks mother)	123-45-6780	01/13/1946
Derek Zoolander, Jr. (Dereks son)	123-45-6783	07/18/1991
Scrappy Zoolander (Dereks nephew)	123-45-6784	02/16/1996

Harriet passed away on February 1, 2016. For the past few years, Harriet qualified as a dependent of Dereks. Scrappy is a full-time student in a coal-mining school and earns $4,500 as an intern. Derek Jr. does not work and is engaged to be married.

Federal income tax of $5,600 was withheld from his wages. If Derek has any overpayment on his income tax, he wants the refund sent to him. He does not wish to contribute to the Presidential Election Campaign.

Complete Dereks 2016 Federal income tax return and necessary schedules using the fillable forms, you will need Form 1040 and Schedule A. Anything not mentioned can be skipped over in the forms.