Lance H. and Wanda B. Dean are married. Lance works for the convention bureau of the local Chamber of Commerce, and Wanda is employed part-time as a paralegal for a law firm. During 2024, the Deans had the following receipts: Salaries ($60,000 for lance and $41,000 for Wanda) $101,000 Interest Income: City of Albuquerque general purpose bonds Ford Motor Company Bonds Ally Bank Savings Account Payments from John Allen Annual Gift from Parent Settlement from Roadrunner Touring Company Lottery Winnings $1,000 1,100 400 7,200 26,000 90,000 600 400 Refund of 2023 Federal Income Taxes And Expenditures Property Taxes on personal Residence State of New Mexico Income Tax Interest on Home Mortgage Charitable Contributions Contributions to a traditional IRA Traffic Tickets Contribution to the reelection campaign fund of the mayor of Santa Fe. 500 Estimated Federal Tax Payments for 2024 3,600 4,200 6,000 3,600 5,000 300 10,000 Additional Information: 1) Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution. 2) Wanda was previously married to John Allen. When they divorced in 2016, Wanda was awarded custody of their Two children, Penny and Kyle - aged 12 and 13 respectively. Under the divorce decree, John was obligated to pay alimony and child support—the alimony payments were to terminate if Wanda remarried. 3) In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. Because 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 4) paid her $90,000 as a settlement of the personal injuries she sustained. The deans have two children, in addition to Penny and Kyle, for whom they provide the full support, Brett who is 13 and Jane who is 20 and does not attend school full time. 5) Their tax rate for 2024 is 30% Required: What is the amount of the Dean's 2024 net tax due/(refunded)?

To determine the Deans' 2024 net tax due or refund, we need to calculate their taxable income and then apply their tax rate. Here's a step-by-step breakdown: ### Gross Income: 1. **Salaries**: $101,000 2. **Interest Income**: - City of Albuquerque bonds: $1,000 (tax-exempt) - Ford Motor Company bonds: $1,100 - Ally Bank savings account: $400 3. **Payments from John Allen**: $7,200 (alimony received before 2019 is taxable) 4. **Lottery Winnings**: $400 **Total Gross Income**: $101,000 + $1,100 + $400 + $7,200 + $400 = $110,100 ### Exclusions from Gross Income: - **City of Albuquerque Bonds**: $1,000 (tax-exempt) - **Settlement from Roadrunner Touring Company**: $90,000 (personal injury settlements are generally tax-exempt) ### Adjustments to Income: - **IRA Contributions**: $5,000 (deductible) ### Deductions: - **Standard Deduction for Married Filing Jointly (2024)**: $27,700 (assuming they take the standard deduction as it is likely higher than itemized deductions) ### Taxable Income: - **Adjusted Gross Income (AGI)**: $110,100 - $5,000 =

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