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Aarons wife, Suzy, died in the current tax year. Since, then he has been caring for their one dependent daughter, Tessa. He has not remarried

Aarons wife, Suzy, died in the current tax year. Since, then he has been caring for their one dependent daughter, Tessa. He has not remarried and he is 45 years old. (Disregard all child credits for purposes of your calculations) Last year his itemized deductions were $5,000. [CTY = 2018]

Aarons Salary $130,000 Ordinary, qualified dividends on stock $4,000 Refund of prior year state income taxes $2,500 Mortgage interest on personal residence $8,000 Unreimbursed, qualified moving expenses attributable to a job change for Aaron $14,000 State income taxes paid this year $1,900 Net capital losses on stock sales $10,000 Medical expenses for Tessa (out-of-pocket) 16,000

Calculate his

1) AGI;

2) Taxable Income; and

3) Tax Liability (before any credits).

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