Question: Note: This problem is for the tax year.Lance H . and Wanda B . Dean are married and live at 4 3 1 Yucca Drive,
Note: This problem is for the tax year.Lance H and Wanda B Dean are married and live at Yucca Drive, Santa Fe NM Lance works for the convention bureau of the local Chamber of Commerce, and Wanda is employed parttime as a paralegal for a law firm.During the Deans had the following receipts:Line Item DescriptionAmountAmountSalaries $ for Lance, $ for Wanda$Interest incomeCity of Albuquerque general purpose bonds$Ford Motor company bondsAlly Bank certificate of depositTotalChild support payments from John AllenAnnual gifts from parentsSettlement from Roadrunner Touring CompanyLottery winningsFederal income tax refund for tax year 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 waiver. Under the divorce decree, John was obligated to pay alimony and child supportthe alimony payments were to terminate if Wanda remarried.In July, while going to lunch in downtown Santa Fe Wanda was injured by a tour bus. Because the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses including a oneweek stay in a hospital To avoid a lawsuit, Roadrunner also transferred $ to her in settlement of the personal injuries she sustained.The Deans had the following expenditures for :Line Item DescriptionAmountAmountMedical expenses not covered by insurance$TaxesProperty taxes on personal residence$State of New Mexico income tax includes amount withheldfrom wages during TotalInterest on home mortgage First National BankCharitable contributions cashLife insurance premiums policy on Lance's lifeContribution to traditional IRA on Wanda's behalfTraffic finesContribution to the reelection campaign fund of the mayor of Santa FeFuneral expenses for Wayne BoyleThe life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a parttime employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.The Deans' household includes the following, for whom they provide more than half of the support:Line Item DescriptionSocial Security NumberBirth DateLance Dean age Wanda Dean age Penny Allen age Kyle Allen age Wayne Boyle age Penny graduated from high school on May and is undecided about college. During she earned $placed in a savings account playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on December For the past few years, Wayne qualified as a dependent of the Deans.Federal income tax withheld is $Lance and $Wanda The proper amount of Social Security and Medicare tax was withheld.Required:Determine the Federal income tax for for the Deans on a joint return by completing the appropriate forms. Use Form and Schedule to complete this tax return. They do not own and did not use any digital assets during the year, and they do not want to contribute to the Presidential Election Campaign Fund. If an overpayment results, it is to be refunded to them.Make realistic assumptions about any missing data.Enter all amounts as positive numbers.If an amount box does not require an entry or the answer is zero, enter Use the tax rate schedules included with this problem. When computing the tax liability, do not round your immediate calculations. If required, round your final answers to the nearest dollar.
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