Harry and Sally Wentz, ages 35 and 34 respectively, have been married for ten years and have two children, Henry and Sandy, ages 4 and 3 respectively.
Both Harry and Sally work and the children are in daycare. Besides W-2- and 1099R-reported income, Harry and Sally have the following income:

Harry took a distribution from his company’s retirement plan of \($20,000.\) \($6,000\) was rolled over into another qualified retirement plan, \($10,000\) was used towards a down payment on a home (this is the first home that Harry and Sally have purchased), and \($4,000\) was used to pay off high interest rate credit cards.
You will review provided W-2s and 1099R, and calculate: the taxable portion for dependent care assistance;
Harry and Sally’s gross income; and the premature distribution penalty.

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Tip income that was not reported to their employer $8,300 Meals provided by Harry's employer while Harry was working $1,200 $1,000 Length of service award received by Sally in a qualified plan