Comprehensive Question 1. Amanda Johnson, age 40, is single and has a minor child, Jason who is 15. Amanda has been divorced from her husband, John, for four years. Amanda works for NBC as an advertising executive and earned a salary of $100,000 for 2020 with $9,000 in Federal income tax withholding and $3,000 in state income tax withholding. She is covered by an employer sponsored retirement plan. Amanda has legal custody of Jason and the divorce agreement was finalized in June 2016 which required Amanda to pay John annual alimony payments of $15,000 for the next 12 years or until his death. Amanda provided all of Jasons support. Amandas mother, Anne, died in 2020. Amanda inherited her mothers home worth $500,000 and she was the sole beneficiary of Annes life insurance policy in the amount of $200,000. Both items were received by her during 2020. Amanda sold 1,000 shares of Cant Lose, Inc. stock on December 1, 2020 for $8,000. She originally purchased these shares three years ago for $13,500. Amandas uncle, Jimmy, give her stock in IBM having a value of $4,000 at the time of the gift (which he originally purchased for $3,000) in 2020. Amanda sold the shares for $4,000 in 2020. Amanda received the following items: Interest Income of $2,000 from BofA Gift Card Prize from Vons Groceries of $500 Qualified dividends from IBM of $1,500 Interest Income from Pomona City Bonds of $4,000 Share of partnership income from CPP Partnership of $5,000 but only received $4,500* * Assume that the Qualified business income deduction applies but the W-2 wage limitation does not. Amanda made the following payments during 2020: Charitable contributions of $2,500 to My Church and $1,500 to Cal Poly Pomona. $5,000 paid to Pomona Valley Hospital for a friends medical expenses. Mortgage interest for her home in the amount of $8,000. Property taxes on her home of $3,200 and gardening expenses of $800. Estimated Federal Income Taxes of $3,000 and Estimated State Income taxes of $1,000. Medical expenses for herself of $5,000 and $500 for Jason but was reimbursed by insurance in the amount of $1,500. IRA Contribution in the amount of $6,000. Contribution of $250 to various political campaigns. $800 in sales tax that are supported by receipts.

What is Amandas filing status?

Calculate Amandas Gain/Loss from her stock transactions.

Calculate Amandas Gross Income giving income descriptions and amounts.

Calculate Amandas Adjusted Gross Income.

Calculate Amandas Itemized Deductions including the Medical Expense calculation.

Will Amanda claim her Itemized Deductions or the Standard Deduction?

Calculate Amandas Taxable Income starting with Adjusted Gross Income.

What items of income are excluded from Gross Income?

What expenditures by Amanda are not tax deductible?