Question
Camille Sikorski was divorced in 2018. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camilles home for the entire year,
Camille Sikorski was divorced in 2018. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camilles home for the entire year, and Camille paid for all the costs of maintaining the home. Camille received a salary of $72,500 and contributed $4,900 of it to a qualified retirement account (a for AGI deduction). She also received $9,500 of alimony from her former husband (per divorce decree issued in 2018). Finally, Camille paid $16,000 of expenditures that qualified as itemized deductions, including a $1,000 donation to United Way (a public charity). (Use the tax rate schedules and 2021 rules.)
b. What would Camilles taxable income be if she incurred $25,000 of itemized deductions, including a $1,000 donation to the United Way (a public charity), instead of $16,000?
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