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Beth is anticipating significant changes in her life in 2019, and she has asked you to estimate her taxable income and tax liability for 2019.

Beth is anticipating significant changes in her life in 2019, and she has asked you to estimate her taxable income and tax liability for 2019.

She just received word that she has been qualified to adopt a two-year-old daughter. Beth expects that the adoption will be finalized in 2019 and that she will incur approximately $2,000 of adoption expenses.

In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time because of her daughter, she has decided to discontinue her two part-time jobs (i.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments.

In your computations, assume that all other income and expenditures will remain at approximately the same levels as in 2018. Use the 2018 standard deduction amounts and Tax Rate Schedules. Medical deductions are subject to a 10% reduction of AGI in 2019. Beth's rate for the child an dependent care credit is 20% and she is entitled to the full child tax credit and adoption credit as well.

For 2019, determine the following for Beth:

Filing status:Head of Household

Total gross income: $

Adjusted gross income: $

Greater of itemized deductions or standard deduction:$

Taxable income: $

Total income tax liability (before credits) $

Total tax credits: $

Net tax liability (after credits but before any tax withholdings or payments): $

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