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Ana, your college friend, is asking for your help in determining her tax refund for 2020. Ana knows that since you are a brilliant tax

Ana, your college friend, is asking for your help in determining her tax refund for 2020. Ana knows that since you are a brilliant tax student, you would help her to get back the most tax refund possible. Below are Ana financial items in 2020.

  • Anas main source of income is from her hair salon. In 2020, her hair salon generates the total revenue of $120k.
  • Ana told you that she believes her total business expenses is $80k. In that, $50k is to pay her only employee/salon manager. $3k is for supplies. $7k is for utilities. $12k is the rent. And the remaining $8k is for food. Ana told you that because the salon closes at 9 pm, they often order food and have dinner at the salon together.
  • Ana completely divorced her husband in October 2019. In 2020, Ana receive the full $12k from her ex-husband.
  • Ana paid her Texas property tax of $7k in 2020.
  • Ana also donate $1k for the Covid-19 foundation in 2020. Through your research, you know that the foundation is a qualified public charity operating foundation.
  • As a self-employed, Ana have made 4 prepayments in 2020. Her total prepayment is $12k.

  1. What is Anas filing status?
  2. What is Anas gross income?
  3. What is Anas total For AGI deduction?
  4. What is Anas total Itemized deduction?
  5. What is Anas DQBI (if any)?
  6. What is Anas taxable income?
  7. What is Anas income tax liability?

Can Ana claim any potential tax credit with just the info she provided?

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