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 ofCommerce, while Wanda is employed part-time as a paralegal for alaw firm.

During 2016, the Deanshad the following receipts:

Salaries ($60,000 for Lance,$41,000 for Wanda)				$101,000
Interest income—
City ofAlbuquerque general purpose bonds		$1,000
Ford Motorcompany bonds		1,100
Ally Bankcertificate of deposit		400		2,500
Child support payments fromJohn Allen				7,200
Annual gifts from parents				26,000
Settlement from RoadrunnerTouring Company				90,000
Lottery winnings				600
Federal income tax refund (fortax year 2015)				400

Wanda was previouslymarried to John Allen. When they divorced several years ago, Wandawas awarded custody of their two children, Penny and Kyle. (Note:Wanda has never issued a Form 8332 waiver.) Under the divorcedecree, John was obligated to pay alimony and child support—thealimony payments were to terminate if Wanda remarried.

In July, while goingto lunch in downtown Santa Fe, Wanda was injured by a tour bus. Asthe driver was clearly at fault, the owner of the bus, RoadrunnerTouring Company, paid her medical expenses (including a one-weekstay in a hospital). To avoid a lawsuit, Roadrunner alsotransferred $90,000 to her in settlement of the personal injuriesshe sustained.

The Deans had thefollowing expenditures for 2016:

Medical expenses (not coveredby insurance)				$7,200
Taxes—
Propertytaxes on personal residence		$3,600
State of NewMexico income tax (includes amount 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 traditionalIRA (on Wanda's behalf)				5,000
Traffic fines				300
Contribution to the reelectioncampaign fund of the mayor of Santa Fe				500
Funeral expenses for WayneBoyle				6,300

The life insurancepolicy was taken out by Lance several years ago and designatesWanda as the beneficiary. As a part-time employee, Wanda isexcluded from coverage under her employer's pension plan.Consequently, she provides for her own retirement with atraditional IRA obtained at a local trust company. Because themayor is a member of the local Chamber of Commerce, Lance feltcompelled to make the political contribution.

The Deans' householdincludes the following, for whom they provide more than half of thesupport:

	Social SecurityNumber	BirthDate
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 fromhigh school on May 9, 2016, and is undecided about college. During2016, she earned $8,500 (placed in a savings account) playing aharp in the lobby of a local hotel. Wayne is Wanda's widower fatherwho died on January 20, 2016. For the past few years, Waynequalified as a dependent of the Deans.

Federal income taxwithheld is $5,200 (Lance) and $3,100 (Wanda). The proper amount ofSocial Security and Medicare tax was withheld.

how to find taxableinterest? line 8a on 1040 form

I need help on thisproblem using the new tax forms for this current year now that theychanged the forms.

thanks in advance.