Lance H. and Wanda B. Dean are married and live at 431 YuccaDrive, Santa Fe, NM 87501. Lance works for the convention bureau ofthe local Chamber of Commerce, while Wanda is employed part-time asa paralegal for a law firm.
During 2016, the Deans had the following receipts:
Salaries ($60,000 for Lance, $41,000 for Wanda) $101,000 Interest incomeâ City of Albuquerque general purposebonds $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 2015) 400
Wanda was previously married to John Allen. When they divorcedseveral 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 andchild supportâthe alimony payments were to terminate if Wandaremarried.
In July, while going to lunch in downtown Santa Fe, Wanda wasinjured by a tour bus. As the driver was clearly at fault, theowner of the bus, Roadrunner Touring Company, paid her medicalexpenses (including a one-week stay in a hospital). To avoid alawsuit, Roadrunner also transferred $90,000 to her in settlementof the personal injuries she sustained.
The Deans had the following expenditures for 2016:
Medical expenses (not covered by insurance) $7,200 Taxesâ Property taxes on personal residence $3,600 State of New Mexico income tax (includesamount withheld from wages during 2016) 4,200 7,800 Interest on home mortgage (First National Bank) 6,000 Paid church pledge 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 mayor ofSanta Fe 500 Funeral expenses for Wayne Boyle 6,300
The life insurance policy was taken out by Lance several yearsago and designates Wanda as the beneficiary. As a part-timeemployee, Wanda is excluded from coverage under her employer'spension plan. Consequently, she provides for her own retirementwith a traditional IRA obtained at a local trust company. Becausethe mayor is a member of the local Chamber of Commerce, Lance feltcompelled to make the political contribution.
The Deans' household includes the following, for whom theyprovide more than half of the support:
Social Security Number Birth Date Lance Dean (age 42) 123-45-6786 12/16/1974 Wanda Dean (age 40) 123-45-6787 08/08/1976 Penny Allen (age 19) 123-45-6788 10/09/1997 Kyle Allen (age 17) 123-45-6789 05/03/1999 Wayne Boyle (age 75) 123-45-6785 06/15/1941
Penny graduated from high school on May 9, 2016, and isundecided about college. During 2016, she earned $8,500 (placed ina savings account) playing a harp in the lobby of a local hotel.Wayne is Wanda's widower father who died on January 20, 2016. Forthe past few years, Wayne qualified as a dependent of theDeans.
Federal income tax withheld is $5,200 (Lance) and $3,100(Wanda). The proper amount of Social Security and Medicare tax waswithheld.
how to find taxable interest? line 8a on 1040 form
Lance H. and Wanda B. Dean are married and live at 431 YuccaDrive, Santa Fe, NM 87501. Lance works for the convention bureau ofthe local Chamber of Commerce, while Wanda is employed part-time asa paralegal for a law firm.
During 2016, the Deans had the following receipts:
| Salaries ($60,000 for Lance, $41,000 for Wanda) | $101,000 | |||
| Interest incomeâ | ||||
| City of Albuquerque general purposebonds | $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 2015) | 400 |
Wanda was previously married to John Allen. When they divorcedseveral 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 andchild supportâthe alimony payments were to terminate if Wandaremarried.
In July, while going to lunch in downtown Santa Fe, Wanda wasinjured by a tour bus. As the driver was clearly at fault, theowner of the bus, Roadrunner Touring Company, paid her medicalexpenses (including a one-week stay in a hospital). To avoid alawsuit, Roadrunner also transferred $90,000 to her in settlementof the personal injuries she sustained.
The Deans had the following expenditures for 2016:
| Medical expenses (not covered by insurance) | $7,200 | |||
| Taxesâ | ||||
| Property taxes on personal residence | $3,600 | |||
| State of New Mexico income tax (includesamount withheld | ||||
| from wages during 2016) | 4,200 | 7,800 | ||
| Interest on home mortgage (First National Bank) | 6,000 | |||
| Paid church pledge | 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 mayor ofSanta Fe | 500 | |||
| Funeral expenses for Wayne Boyle | 6,300 |
The life insurance policy was taken out by Lance several yearsago and designates Wanda as the beneficiary. As a part-timeemployee, Wanda is excluded from coverage under her employer'spension plan. Consequently, she provides for her own retirementwith a traditional IRA obtained at a local trust company. Becausethe mayor is a member of the local Chamber of Commerce, Lance feltcompelled to make the political contribution.
The Deans' household includes the following, for whom theyprovide more than half of the support:
| Social Security Number | Birth Date | |
| Lance Dean (age 42) | 123-45-6786 | 12/16/1974 |
| Wanda Dean (age 40) | 123-45-6787 | 08/08/1976 |
| Penny Allen (age 19) | 123-45-6788 | 10/09/1997 |
| Kyle Allen (age 17) | 123-45-6789 | 05/03/1999 |
| Wayne Boyle (age 75) | 123-45-6785 | 06/15/1941 |
Penny graduated from high school on May 9, 2016, and isundecided about college. During 2016, she earned $8,500 (placed ina savings account) playing a harp in the lobby of a local hotel.Wayne is Wanda's widower father who died on January 20, 2016. Forthe past few years, Wayne qualified as a dependent of theDeans.
Federal income tax withheld is $5,200 (Lance) and $3,100(Wanda). The proper amount of Social Security and Medicare tax waswithheld.
how to find taxable interest? line 8a on 1040 form
