Lance h

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Lance h. and Wanda B. dean are married and live at 431 front St., Perrysburg, oh 43551. 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 2015, the deans had the following receipts:

Salaries ($60,000 for lance, $41,000 for Wanda)      $101,000

 

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 war to terminate if Wanda remarried.

The deans’ household includes the following, for whom they provide more than half of the support:

Social security number                                      Birth date

Lance dean (age 45)                                123-45-6786                                                      12/16/1973

Wanda dean (age 43)                              123-45-6787                                                      08/08/1975

Penny Allen (age 22)                                123-45-6788                                                      10/09/1996

Kyle Allen (age 16)                                    123-45-6789                                                      05/03/2002

Wayne Boyle (age 78)                              123-45-6785                                                      06/15/1940

 

Penny graduated from high school in 2014, and has not attended college. During 2018, she earned

$8,500 (placed in a savings account) playing a harp in the lobby of a local hotel.

 

Wayne is wand’s widower father who died on January 20, 2018. For the past few years, Wayne qualified as a dependent of the deans.

Kyle Allen is a high school student.

Federal income tax withheld is $5,200 (lance) and $3,100 (Wanda). The proper amount of social security and Medicare tax was withheld. Ohio income tax withheld is $2,100 (lance) and $800(Wanda). Perrysburg income tax withheld is $900 (lance). Toledo income tax withheld is $900 (Wanda). School district income tax withheld is $305 (lance) and $200 (Wanda).

 

Required:

Determine the federal income tax for 2018 for the deans on a joint return by completing the appropriate forms. Use form 1040 to complete this tax return. 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.

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