Anne has been filing as head of household since her divorce in 2005. The divorce decree specified Anne would receive $10,000/year in alimony. Anne could claim the children as her dependents even though the expenses of raising their children were divided 50/50 with her ex-husband. Daughter Meaghan, born 2-2-1999, graduated from college in May 2023; she is working full-time and was married on August 26, 2023. Son Matthew, born 9-12-2002 dropped out of college; he did not return to school in spring 2023. Matthew will earn $10,000 in 2023 from a part-time job. Matthew currently lives with Anne but plans to get his own apartment when he secures full-time employment. Anne was a self-employed consultant for the past 10 years; she retired at the end of 2022. Anne receives Social Security benefits of $2,000/month and fully taxable distributions from her retirement plan of $3,000/month to cover living expenses totaling $5,000 per month. Anne has been filing as head of household, claiming the standard deduction since 2005. For 2023 her itemized deductions will be: Massachusetts state income taxes: $2,500 Real estate taxes on personal residence: $10,000 Home mortgage interest expense: $2,000. The mortgage will be paid off in 2023. Anne pledged $12,500 in cash to her church building capital fund to be paid equally over 5 years beginning in 2023. She wonders if she should accelerate her pledge by paying it in a lump sum in 2023. She recently received a cash inheritance of $150,000 and would use this cash to make the contribution. Since Matthew may soon no longer live at home, Anne is considering selling her house and downsizing. She received the house now worth $400,000 as part of the property settlement in the divorce. Anne & her ex-husband purchased the house for $150,000 in 1999. QUESTIONS: 1. How do Annes children impact her filing status? 2. How do Annes Social Security benefits impact her taxable income? 3. What will Anne deduct from AGI in 2023? 4. What advice do you have for Anne regarding the timing of payment of her church pledge? 5. What are the tax consequences if she sells her house? What additional information do you need from Anne?