• You will file2022Federal income tax return (treat all info as for year 2022not 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)
• fileForm 1040andSch. 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.

Tax Return Problems 1. Tax Forms Problem 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. During 2021, the Deans had the following receipts: Salaries ($60,000 for Lance, $42,000 for Wanda) $102,000 Interest income- City of Albuquerque general purpose bonds $1,000 Ford Motor Company bonds 1,100 Ally Bank certificate of deposit 400 2,500 Child support payments from John Allen 7,200 26,000 90,000 Lottery winnings 600 400 Annual gifts from parents Settlement from Roadrunner Touring Company Federal income tax refund (for tax year 2020) Details 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.