In June 2013 Phillip and Barbara Jones and their two dependent children, who are both over 17, moved from Chicago to Albuquerque, New Mexico, a distance of 1,327 miles, which they drove in their own car. The children's names are Roger and Gwen and both will be attending the University of New Mexico in the fall, Roger as a freshman and Gwen as a junior. The move was a result of a job transfer for Phillip. The distance from their old home to Phillip's old office was 30 miles. Barbara quit her job in Chicago and decided to perform volunteer work for a year before seeking further employment. Phillip and Barbara incurred expenses of $4,550 to the moving company ( which included $320 for temporary furniture storage), hotel charges of $550, and meals of $712 en route from Chicago to Albuquerque. Their new home is located at 7432 Desert Springs Way, Albuquerque, NM 87101. Phillip, but not Barbara, was employed in the new location throughout the year. Phillip's social security number is 412-34-5670 (date of birth 6/12/1971), Barbara's is 412-34-5671 (date of birth 8/12/1973), Roger's is 412-34-5672 (date of birth 2/17/1996), and Gwen's is 412-34-5673 (date of birth 9/14/1994). Phillip is an attorney for a national law firm; his W-2 contained the following information.
Wages (box 1)=$110,220.45
Federal W/H (box 2)=$11,115.42
Social securtiy wages (box 3)=$110,220.45
Social security (box 4)=$6,833.67
Medicare wages (box 5)=$110,220.45
Medicare W/H (box 6)=$1,598.20
Employer moving expense reimbursement
(box 12, Code P)=$5,000.00
In addition, both he and Barbara received forms 1098-E from the federal student loan program. Phillip had student loan interest of $1,050, and Barbara had student loan interest of $750.
Prepare a form 1040 for Phillip and Barbara as well as Form 3903 and a student loan interest worksheet. If manually preparing return, the student loan interest deduction worksheet can be found in IRS publication 970, Tax Benefits for Education.