CUMULATIVE PROBLEMS 99. Alton Newman, age 67, is married and files a joint return with his wife, Clair, age 65. Alton and Clair are both retired, and during 2012, they received Social Security 123-45-6789. They reside at 210 College Drive, Columbia, SC 29201. Alton, who retired on January 1, 2012, receives benefits from a qualified pension plan of $750 a month for life. His total contributions to the plan (none of which were deductible) were $68,250. In January 2012, he received a bonus of $2,000 from his former employer for service performed in 2011. Although the former employer accrued the bonus in 2011, it was not paid until 2012. Clair, who retired on December 31, 2011, started receiving benefits of $900 a month on January 1, 2012. Her contributions to the qualified pension plan (none of which were deductible) were $74,100. Clair had casino winnings for the year of $4,500 and casino losses of $2,100, while Alton won $17,000 on a $1 lottery ticket. On September 27, 2012, Alton and Clair received a 10% stock dividend on 600 shares of stock they owned. They had bought the stock on March 5, 2005, for $20 a share. On December 16, 2012, they sold the 60 dividend shares for $55 a share.