Tax Refund and Federal Income 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, while Wanda is employed part-time as a paralegal for a law firm.
During 2012, the Deans recorded 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 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 2011) 400
Wanda previously was 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.
As 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 to her $90,000 cash in settlement of the personal injuries she sustained.
The Deans made the following expenditures for 2012.
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 2012) 4,200 7,800
Interest on home mortgage 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 of Santa Fe 500
Funeral expenses for Wayne Boyle 6,300
Tax Return Problem
The life insurance policy was taken out by Lance several
During 2012, the Deans recorded 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 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 2011) 400
Wanda previously was 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.
As 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 to her $90,000 cash in settlement of the personal injuries she sustained.
The Deans made the following expenditures for 2012.
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 2012) 4,200 7,800
Interest on home mortgage 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 of Santa Fe 500
Funeral expenses for Wayne Boyle 6,300
Tax Return Problem
The life insurance policy was taken out by Lance several