Tax Forms Problem

ProConnect Tax

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 $2023,$ the Deans had the following receipts:

$($See attachment$)$

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 obligated to pay alimony and child support$-$the 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 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 $2023$:

$($See attachment$)$

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 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:

Social Security Number Birth Date

Lance Dean $($age $42)123-45-678612/16/1981$

Wanda Dean $($age $40)123-45-678708/08/1983$

Penny Allen $($age $19)123-45-678810/09/2004$

Kyle Allen $($age $16)123-45-678005/03/2007$

Wayne Boyle $($age $75)123-45-678506/15/1948$

Penny graduated from high school on May $9,2023,$ and is undecided about college:

During $2023,$ She earned $$8,500$ glaced in a savings ascount$)$ playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father whe died en December $20,$

$2023.$ For the past few years, Wayne qualified as a dependent of the Deans:

Federal inseme tax winheid is $$3,900($Lance$)$ and $$1,600($Wanda$).$ The proper amount of Social Security and Medicare tax was withheia:

Determine the Federal income tax for $2023$ for the Deans on a joint return by completing the appropriate forms: They do not own and did not use any digital assets

$$uring 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. Suggested software:

ProConnect Tax.

Salaries $($ $$60,000$ for Lance, $$43,000$ for Wanda$)$

Interest income$-$

City of Albuquerque general purpose bonds

Ford Motor company bonds

Ally Bank certificate of deposit

Child support payments from John Allen

Annual gifts from parents

Settlement from Roadrunner Touring Company

Lottery winnings

Federal income tax refund $($for tax year $2022)$

Medical expenses $($not covered by insurance$)$

Taxes$-$