Please note: This is for Tax Year 2018. Please answer all questions in boxes: 1,2a, 2b,6,7,8,10,11a,11,12,13,15,16,18,19,20a,21,22,32,36. Thank you.

arried and live at 431 Yucca Drive, Santa Fe, NM 1. Lance H. and Wanda B. Dean are married and live at 431 Yuc 87501. Lance works for the convention bureau of the Vorks for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law fi During 2018, the Deans had the following receipts: Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest income- City of Albuquerque general purpose bonds $1,000 Ford Motor Company bonds 1,100 Ally Bank certificate of deposit 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 Federal income tax refund (for tax year 2017) 400 400 600 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 8332 waiver.) Under the divorce decree, John was obli- gated 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. As the driver was clearly at fault, the owner of the bus, Roadrunner Tour- ing Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained. The Deans had the following expenditures for 2018: Medical expenses (not covered by insurance) $7,200 Taxes- Property taxes on personal residence $3,600 State of New Mexico income tax (includes amount withheld from wages during 2018) 4,200 7,800 Interest on home mortgage (First National Bank) 6,000 Charitable contributions 3,600 Life insurance premiums (policy on Lance's life) 1,200 Contribution to traditional IRA (on Wanda's behalf) 5,000 Traffic fines 300 Contribution to the reelection campaign fund of the 500 mayor of Santa Fe Funeral expenses for Wayne Boyle 6,300 The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from cover- age 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: Social Security Number* Birth Date Lance Dean (age 42) Wanda Dean (age 40) Penny Allen (age 19) Kyle Allen (age 16) Wayne Boyle (age 75) 123-45-6786 123-45-6787 123-45-6788 123-45-6789 123-45-6785 12/16/1976 08/08/1978 10/09/1999 05/03/2002 06/15/1943 *In the interest of privacy and to protect against taxpayer identification misuse, Social Security numbers used throughout the textbook have been replaced with fictitious numbers. Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father, who died on January 20, 2018. For the past few years, Wayne qualified as a dependent of the Deans. Federal income tax withheld is $4,200 (Lance) and $2,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld. Determine the Federal income tax for 2018 for the Deans on a joint return by completing the appropriate forms. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. If an overpayment results, it is to be refunded to them. Suggested software: ProConnect Tax Online. Form 1040 (2018) Lance H. and Wanda B. Dean 123-45-6786 Page 2 1 Wages, salaries, tips, etc. Attach Form(s) W-2.. 2a 3b 4a TRA Attach Form(s) W- 2. Also attach Form(s) W-2G and 1099-R if tax was withheld. Tax-exempt interest b Taxable interest Qualified dividends b Ordinary dividends IRAS, pensions, and 4a b Taxable amount annuities Social security benefits | 5 b Taxable amount Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 5a 6 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6.. Standard deduction or itemized deductions (from Schedule A)...... Qualified business income deduction (see instructions).. Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0-.. 10 Form(s) 8814 Standard Deduction for- Single or married ied 9 filing separately, 10 $12,000 Married filing 11 jointly or Qualifying widow(er), $24,000 Head of household, $18,000 If you checked 13 any box under Standard 14 a Tax (see inst) (check if any from: 2 o Form 4972 3 b Add any amount from Schedule 2 and check here a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here. Subtract line 12 from line 11. If zero or less, enter -0-.. Other taxes. Attach Schedule 4... 15 eduction, see structions. Total tax. Add lines 13 and 14..... 16 Federal income tax withheld from Forms W-2 and 1099.... 17 Refundable credits: a EIC (see inst.) b Sch 8812 c Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid.. 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 202 Direct deposit? Routing number c Type: Checking O Savings See instructions. d Account number 21 . Amount of line 19 you want applied to your 2019 estimated tax. Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 22 Amount 22 You Owe 23 Estimated tax penalty (see instructions)..... 23 Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2018) 21 Other income. List type and amount 21 22 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 Adjustments . 23 Educator expenses..... 23 to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . Health savings account deduction. Attach Form 8889. 25 26 Moving expenses for members of the Armed Forces. Attach Form 3903....... 28 27 Deductible part of self-employment tax. Attach Schedule SE....... 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction .... 30 Penalty on early withdrawal of savings ..... 31a Alimony paid b Recipient's SSN 30 31a 32 IRA deduction ..., 32 33 Student loan interest deduction .. 33 34 Reserved ........ 34 35 Reserved .. 35 36 Add lines 23 through 35 ...... 36 arried and live at 431 Yucca Drive, Santa Fe, NM 1. Lance H. and Wanda B. Dean are married and live at 431 Yuc 87501. Lance works for the convention bureau of the Vorks for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law fi During 2018, the Deans had the following receipts: Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest income- City of Albuquerque general purpose bonds $1,000 Ford Motor Company bonds 1,100 Ally Bank certificate of deposit 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 Federal income tax refund (for tax year 2017) 400 400 600 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 8332 waiver.) Under the divorce decree, John was obli- gated 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. As the driver was clearly at fault, the owner of the bus, Roadrunner Tour- ing Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained. The Deans had the following expenditures for 2018: Medical expenses (not covered by insurance) $7,200 Taxes- Property taxes on personal residence $3,600 State of New Mexico income tax (includes amount withheld from wages during 2018) 4,200 7,800 Interest on home mortgage (First National Bank) 6,000 Charitable contributions 3,600 Life insurance premiums (policy on Lance's life) 1,200 Contribution to traditional IRA (on Wanda's behalf) 5,000 Traffic fines 300 Contribution to the reelection campaign fund of the 500 mayor of Santa Fe Funeral expenses for Wayne Boyle 6,300 The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from cover- age 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: Social Security Number* Birth Date Lance Dean (age 42) Wanda Dean (age 40) Penny Allen (age 19) Kyle Allen (age 16) Wayne Boyle (age 75) 123-45-6786 123-45-6787 123-45-6788 123-45-6789 123-45-6785 12/16/1976 08/08/1978 10/09/1999 05/03/2002 06/15/1943 *In the interest of privacy and to protect against taxpayer identification misuse, Social Security numbers used throughout the textbook have been replaced with fictitious numbers. Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father, who died on January 20, 2018. For the past few years, Wayne qualified as a dependent of the Deans. Federal income tax withheld is $4,200 (Lance) and $2,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld. Determine the Federal income tax for 2018 for the Deans on a joint return by completing the appropriate forms. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. If an overpayment results, it is to be refunded to them. Suggested software: ProConnect Tax Online. Form 1040 (2018) Lance H. and Wanda B. Dean 123-45-6786 Page 2 1 Wages, salaries, tips, etc. Attach Form(s) W-2.. 2a 3b 4a TRA Attach Form(s) W- 2. Also attach Form(s) W-2G and 1099-R if tax was withheld. Tax-exempt interest b Taxable interest Qualified dividends b Ordinary dividends IRAS, pensions, and 4a b Taxable amount annuities Social security benefits | 5 b Taxable amount Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 5a 6 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6.. Standard deduction or itemized deductions (from Schedule A)...... Qualified business income deduction (see instructions).. Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0-.. 10 Form(s) 8814 Standard Deduction for- Single or married ied 9 filing separately, 10 $12,000 Married filing 11 jointly or Qualifying widow(er), $24,000 Head of household, $18,000 If you checked 13 any box under Standard 14 a Tax (see inst) (check if any from: 2 o Form 4972 3 b Add any amount from Schedule 2 and check here a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here. Subtract line 12 from line 11. If zero or less, enter -0-.. Other taxes. Attach Schedule 4... 15 eduction, see structions. Total tax. Add lines 13 and 14..... 16 Federal income tax withheld from Forms W-2 and 1099.... 17 Refundable credits: a EIC (see inst.) b Sch 8812 c Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid.. 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 202 Direct deposit? Routing number c Type: Checking O Savings See instructions. d Account number 21 . Amount of line 19 you want applied to your 2019 estimated tax. Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 22 Amount 22 You Owe 23 Estimated tax penalty (see instructions)..... 23 Go to www.irs.gov/Form1040 for instructions and the latest information. Form 1040 (2018) 21 Other income. List type and amount 21 22 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and include on Form 1040, line 6. Otherwise, go to line 23 Adjustments . 23 Educator expenses..... 23 to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 . Health savings account deduction. Attach Form 8889. 25 26 Moving expenses for members of the Armed Forces. Attach Form 3903....... 28 27 Deductible part of self-employment tax. Attach Schedule SE....... 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction .... 30 Penalty on early withdrawal of savings ..... 31a Alimony paid b Recipient's SSN 30 31a 32 IRA deduction ..., 32 33 Student loan interest deduction .. 33 34 Reserved ........ 34 35 Reserved .. 35 36 Add lines 23 through 35 ...... 36