The following additional information is available for the Dr. Ivan and Irene Incisor family.
Ivan and Irene have the following investment income, in addition to that reported in Chapter 1:
Dividends (qualified) on Big Bank stock..................................................$850
Dividends (qualified) on Big Gas Company stock.........................................470
Dividends (nonqualified) from Mango Mutual Fund......................................145
Interest on Washington State Municipal Bonds............................................650
Interest on Big Electric Company Bonds...................................................650
Ivan went to a local Indian casino and won $6,000 playing Keno. Ivan had no other gambling income or loss for the year.
In February, Irene received $50,000 in life insurance proceeds from the death of her friend Sharon.
In July, Ivan's uncle Igor died and left him real estate (undeveloped land) worth $72,000.
Five years ago, Ivan and Irene were divorced. Ivan married Mary Molar, but that marriage did not work out and they were divorced a year later. Under their divorce decree, Ivan pays Mary $13,000 per year alimony. All payments were made on time during 2012. Mary's Social Security number is 667-34-9224. Three years ago, Ivan and Irene were remarried.
Bitewing Dental Clinic, Inc. pays Ivan's dental license fees and membership dues to dental organizations. During 2012, Bitewing paid $1,240 for such dues and fees for Ivan.
Irene was laid off from her job on January 2, 2012. For 2012, she received $3,750 in unemployment benefits.
Ivan and his family are covered by an employer-sponsored health insurance plan at work. Bitewing pays $700 per month premiums for Ivan and his family. During the year, Irene was in the hospital for a few days to have her appendix removed.
The bill for the surgery was $5,100 of which the health insurance plan reimbursed Ivan the full $5,100.
Required: Combine this new information about the Incisor family with the information from Chapter 1 and complete a revised 2012 tax return for Ivan and Irene. Be sure to save your data input files since this case will be expanded with more tax information in later chapters.