Chris and Stefani Watanabe, married filing jointly, live with their two boys at 1400 Victoria Lane, Riverside,
CA 92501. Chris is an accountant who has his own accounting practice. Stefani is an elementary school teacher.
Their sons, Justin and Jordan, are ages 13 and 10, respectively. The following is additional information
regarding the Watanabes.
Social security numbers and birthdates for the Watanabe family:
Chris 412-34-5670 05/23/1981
Stefani 412-34-5671 10/14/1982
Justin 412-34-5672 02/19/2008
Jordan 412-34-5673 07/02/2011
They paid $4,500 to Friendly Hills Child Care center for after-school care for both Justin and Jordan, allocated
equally. The address is 2 River Drive, Riverside, CA 92501 and their ID number is 22-1234567.
Stefani’s W-2 from the Riverside school district showed the following:
Wages = $ 56,925.04
Federal W/H = $ 6,935.90
Social Security wages = $ 56,925.04
Social Security W/H = $ 3,529.35
Medicare Wages = $ 56,925.04
Medicare W/H = $ 825.41
California W/H = $ 2,105.75
Chris's accounting business is located in downtown Riverside and his business code is 541211. His business had
the following income and expense information (Cash basis) for the year:
Gross revenues $ 168,000
Expenses:
Advertising $ 2,100
Insurance 1,200
Legal fees 10,500
Office supplies 800
Rent 24,000
Travel 6,945
Meals 2,400
Utilities 2,800
Wages 34,000
Dues 650
Additionally, Chris and Stefani paid the following expenses during the year:
Medical and dental expenses $ 4,500
Property tax (home on Victoria Lane) 3,750
State income taxes with the 2020 return 3,900
Donations to the church (cash) 3,500
Mortgage interest (home on Victoria Lane) 17,550
Stefani paid $950 in classroom expenses for her class
Chris and Stefani also earned $1,075 of interest income from California Bank during the year.