Question
Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived in Camilles
Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived in Camilles home, which she owns, for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $50,000 and contributed $4,000 of it to a qualified retirement account (a for AGI deduction). She also received $5,000 of alimony from her former husband. Finally, Camille paid $2,500 of expenditures that qualified as itemized deductions. a. What is Camilles taxable income? b. What would Camilles taxable income be if she incurred $9,500 of itemized deductions instead of $2,500? c. Assume the original facts but now suppose Camilles daughter, Kaly, is 25 years old and a full-time student. Kalys gross income for the year was $5,100. Kaly provided $3,060 of her own support, and Camille provided $5,100 of support. What is Camilles taxable income?
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