Question
Camille Sikorski was divorced last year. She currently owns and provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived
Camille Sikorski was divorced last year. She currently owns and provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived in Camilles home for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $107,500 and contributed $6,400 of it to a qualified retirement account (a for AGI deduction). She also received $16,500 of alimony from her former husband. Finally, Camille paid $4,800 of expenditures that qualified as itemized deductions.
a.What is Camilles taxable income?
b. | What would Camilles taxable income be if she incurred $12,950 of itemized deductions instead of $4,800? |
c. | Assume the original facts except that Camilles daughter, Kaly, is 25 years old and a full-time student. Kalys gross income for the year was $7,400. Kaly provided $4,440 of her own support, and Camille provided $7,400 of support. What is Camilles taxable income? |
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