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Jamie and Cecilia Reyes are husband and wife and file a joint return. They live at 5677 Apple Cove Road, Boise, ID 83722. Jamies social security number is 412-34-5670 (date of birth 6/15/1967) and Cecilias is 412-34-5671 (date of birth 4/12/1969). They provide more than half of the support of their daughter, Carmen (age 23), social security number 412-34-5672 (date of birth 9/1/1993), who is a full-time veterinarian school student. Carmen received a $3,200 scholarship covering her room and board at college. She was not required to perform any services to receive the scholarship. Jamie and Cecilia furnish all of the support of Maria (Jamies grandmother), social security number 412-34-5673 (date of birth 11/6/1946), who is age 70 and lives in a nursing home. They also have a son, Gustavo (age 4), social security number 412-34-5674 (date of birth 3/14/2012). The Reyes and all of their dependents had qualifying health care coverage at all times during the tax year.

Jamies W-2 contained the following information:

Federal Wages (box 1) = $145,625.00

Federal W/H (box 2) = $ 16,812.50

Social Security wages (box 3) = $118,500.00

Social Security W/H (box 4) = $ 7,347.00

Medicare Wages (box 5) = $145,625.00

Medicare W/H (box 6) = $ 2,111.56

State Wages (box 16) = $145,725.00

State W/H (box 17) = $ 5,435.00

Page B-3

Other receipts for the couple were as follows:

Dividends (all qualified dividends)

$2,500

Interest income:

Union Bank

$ 220

State of Idahointerest on tax refund

22

City of Boise school bonds

1,250

Interest from U.S. savings bonds (not used for educational purposes)

410

2015 federal income tax refund received in 2016

2,007

2015 state income tax refund received in 2016

218

Idaho lottery winnings

1,100

Casino slot machine winnings

2,250

Gambling losses at casino

6,500

Other information that the Reyeses provided for the 2016 tax year:

Mortgage interest on personal residence

$11,081

Loan interest on fully equipped motor home

3,010

Doctors fee for a face-lift for Mrs. Reyes

8,800

Dentists fee for a new dental bridge for Mr. Reyes

3,500

Vitamins for the entire family

110

Real estate property taxes paid

$ 5,025

DMV fees on motor home (tax portion)

1,044

DMV fees on family autos (tax portion)

436

Doctors bills for grandmother

2,960

Nursing home for grandmother

9,200

Wheelchair for grandmother

1,030

Property taxes on boat

134

Interest on personal credit card

550

Interest on loan to buy public school district bonds

270

Cash contributions to church (all the contributions were in cash and none more than $250 at any one time)

4,100

Cash contribution to man at bottom of freeway off-ramp

25

Contribution of furniture to Goodwillcost basis

4,000

Contribution of same furniture to listed above Goodwillfair market value

410

Tax return preparation fee for 2015 taxes

625

Required

Prepare a Form 1040, Schedule A, and Schedule B for the completion of the Reyeses tax return. They do not want to contribute to the presidential election campaign and do not want anyone to be a third-party designee. For any missing information, make reasonable assumptions.

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