Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Erica is a single parent with three children who lives in Pennsylvania. Randall is her 19 years old son is a full-time student at Heartland
- Erica is a single parent with three children who lives in Pennsylvania. Randall is her 19 years old son is a full-time student at Heartland College and earned $4,900 in 2021 at his part-time job. Tiffany is 9 and Donna is 1 All three live at home with Erica who provides more than half of their support.
- Erica had wages in 2021 (box 1 of W-2) of $65,500 and $2,600 was withheld from her check for federal taxes. She received 1099-Int from First Federal Savings Bank for $32, Olympic Savings for $78 and State of Pennsylvania general bonds $200.
- Erica contributed 2,200 to her HSA for 2021.
- Some payments that Erica thinks might be deductible are: $3,140 withheld from check to pay state income taxes, $695 sales tax paid on purchase of car, copayments on various visits to doctors and dentists $920, $2,750 for health insurance withheld from her check that reduced box 1, $7,850 for interest on first mortgage to acquire the home and $2,634 interest paid on 2nd mortgage to fix up the house, real estate taxes $4,820, private mortgage insurance $620, losing lottery tickets $520(no winners), $300 to get her taxes for last year prepared, gifts to her church $3520, two loads of clothes to goodwill $150, mileage to raise money for the AHA Heart Walk 200 miles, gave $200 to her sister to buy food.
How much would Erica receive as a refund from her 2021 taxes if she already received the full amount of any stimulus payment and half of the child tax credit that was allowed during 2021?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started