INDIVIDUAL TAX RETURN PROBLEM

Cletus and Josepha Mayor have been married for twelve years and currently live

at 2907 Seven Oaks Lane, Columbia, SC 29210. Their Social Security numbers are

223-34-4444 and 322-32-2222, respectively. They have two daughters, Sheena, age

10, (SSN 344-44-1234) and Carletta, age 7, (SSN 566-55-6543) who live with them

and are fully supported by them.

Cletus is a manager for a local building contractor and earned a salary of

$59,800 for the current tax year. He had $7,600 withheld for federal income

taxes and $1,300 for state income taxes. Josepha is an elementary school teacher

and earned $31,950. She had $3,280 withheld for federal income taxes and $700

for state income taxes.

On July 20 they purchased a new home for $210,000. The last five years they

have lived in rented homes or apartments because they moved frequently for

Cletus