1. (UNITED STATES) Reba divorced her husband several years back. In the current year (2018), she received $87,000 in salary, $25,000 in child support from her ex-husband, and $4,500 in interest income. Her three children, Cheyenne, Jake, and Kyra, lived with her this year but only Jake and Kyra qualify as her dependents and count as qualifying persons for determining filing status. In addition, she has $12,000 in total itemized deductions available for the year. Assume she is not subject to AMT, is not self-employed, does not qualify for any additional tax credits, and has not made any prepayments of tax for the year.

a. What filing status should Reba use for her 2018 tax return?

b. Using the information above, the appropriate Federal Tax Schedule and other values from Appendix D, and the individual tax formula to calculate Rebas 2018 tax due at the end of the year.

c. Assume that in addition to the original facts, Reba had a long-term capital gain of $8,000 (subject to the 15% capital gains rate). What are Rebas taxes due at the end of the year now?

d. Assume there was no long-term capital gain but that Reba had 30,000 of itemized deductions available instead of $12,000. How much would this change Rebas tax liability for the year?