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Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL

60781. Her Social Security number is 123-45-6789. Roberta has been divorced

from her former husband, Wayne, for three years. She has a son, Jason, who is 17,

and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112,

and June's is 123-45-6788. Roberta does not want to contribute $3 to the

Presidential Election Campaign Fund.

Roberta, an advertising executive, earned a salary of $80,000 in 2016. Her

employer withheld $9,000 in Federal income tax and $3,100 in state income tax.

Roberta has legal custody of Jason and June. The divorce decree provides that

Roberta is to receive the dependency deductions for the children. Jason lives with

his father during summer vacation. Wayne indicates that his expenses for Jason

are $10,500. Roberta can document that she spent $6,500 for Jason's support

during 2016. In prior years, Roberta gave a signed Form 8332 to Wayne

regarding Jason. For 2016, she has decided not to do so. Roberta provides all of

June's support.

Roberta's mother died on January 7, 2016. Roberta inherited assets worth

$625,000 from her mother. As the sole beneficiary of her mother's life insurance

policy, Roberta received insurance proceeds of $300,000. Her mother's cost basis

for the life insurance policy was $120,000. Roberta's favorite aunt gave her

$13,000 for her birthday in October.

On November 8, 2016, Roberta sells for $22,000 Amber stock that she had

purchased for $24,000 from her first cousin, Walt, on December 5, 2010. Walt's

cost basis for the stock was $26,000, and the stock was worth $23,000 on

December 5, 2010. On December 1, 2016, Roberta sold Falcon stock for $13,500.

She had acquired the stock on July 2, 2012, for $8,000.

An examination of Roberta's records reveals that she received the following:

Interest income of $2,500 from First Savings Bank.

Groceries valued at $750 from a local grocery store for being the

100,000th customer.

Qualified dividend income of $1,800 from Amber.

Interest income of $3,750 on City of Springfield school bonds.

Alimony of $16,000 from Wayne.

Distribution of $4,800 from ST Partnership. Her distributive share of the

partnership passive taxable income was $5,300. She had no prior passive

activity losses.

From her checkbook records, she determines that she made the following

payments during 2016:

Charitable contributions of $4,500 to First Presbyterian Church and $1,500

to the American Red Cross (proper receipts obtained).

Mortgage interest on her residence of $7,800.

Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her

car.

Estimated Federal income taxes of $3,800 and estimated state income

taxes of $1,000.

Medical expenses of $5,000 for her and $800 for Jason. In December, her

medical insurance policy reimbursed $1,500 of her medical expenses.

A $1,000 ticket for parking in a handicapped space.

Attorney's fees of $500 associated with unsuccessfully contesting the

parking ticket.

Contribution of $250 to the campaign of a candidate for governor.

Because she did not maintain records of the sales tax she paid, she

calculates the amount from the sales tax table to be $994.

Compute Form 1040 U.S. Individual Income Tax Return 2016 for Roberta Santos

Use the 2016 Tax Rate Schedule.

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