Note: This problem is for the 2020 tax year. Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda is employed part-time as a paralegal for a law firm. During 2020, 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 Annual gifts from parents 26,000 Settlement from Roadrunner Touring Company 90,000 Lottery winnings 600 Federal income tax refund (for tax year 2019) 400 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 B332 waiver.) Under the divorce decree, John was obligated to pay almony and child support-the alimony payments were to terminate F Wanda remarried. In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. Because the driver was dearly at faule, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained, The Deans had the following expenditures for 2020- Medical expenses (not covered by insurance) $7,200 Taxes- Property taxes on personal residence $3,600 State of New Mexico income tax (indudes amount withheld from wages during 2020) 4,200 7.800 Interest on home mortgage (First National Bank) 6.000 Charitable contributions (cash) 3.600 Ufe insurance premiums (policy on Lance's life) 1,200 Contribution to traditional IRA (on Wanda's behalf) 6.000 Traffic lines 300 Contribution to the reelection campaign fund of the mayor of Santa Fe 500 Funeral expenses for Wayne Boyle 6,300 The fenourance policy was a cenout by Lance several years ago and designet Wands as the beneficiary. As a part time employee Wande is excluded from coverage under her employer's pension plan. Consequently, the provides for her own retirement with traditional 4,200 Note: This problem is for the 2020 tax year. Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda is employed part-time as a paralegal for a law firm. During 2020, 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 Annual gifts from parents 26,000 Settlement from Roadrunner Touring Company 90,000 Lottery winnings 600 Federal income tax refund (for tax year 2019) 400 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 B332 waiver.) Under the divorce decree, John was obligated to pay almony and child support-the alimony payments were to terminate F Wanda remarried. In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. Because the driver was dearly at faule, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained, The Deans had the following expenditures for 2020- Medical expenses (not covered by insurance) $7,200 Taxes- Property taxes on personal residence $3,600 State of New Mexico income tax (indudes amount withheld from wages during 2020) 4,200 7.800 Interest on home mortgage (First National Bank) 6.000 Charitable contributions (cash) 3.600 Ufe insurance premiums (policy on Lance's life) 1,200 Contribution to traditional IRA (on Wanda's behalf) 6.000 Traffic lines 300 Contribution to the reelection campaign fund of the mayor of Santa Fe 500 Funeral expenses for Wayne Boyle 6,300 The fenourance policy was a cenout by Lance several years ago and designet Wands as the beneficiary. As a part time employee Wande is excluded from coverage under her employer's pension plan. Consequently, the provides for her own retirement with traditional 4,200