Jackie, who is age 45, earned a salary of $30,000 until she was permanently disabled (i.e.blinded) at the Fairplex's 4th of July Fireworks Show from illegal fireworks brought to the Fairplex by Engineering folk while working at her County of Los Angeles Fire Department job on July 4, 2020. She received Workers' Compensation benefits in the amount of $23,000 for the period July 5th through December 31, 2020. She sold 100 shares of IBM stock on December 1, 2020 for $6,000. She purchased these shares for $10,000 on January 2, 2016. She inherited $50,000 in cash from her mother's estate on June 1, 2020. She won the 50/50 raffle at her church's annual fund raiser in the amount of $500. She had interest income from County of Los Angeles Water Bonds in the amount of $1,000, interest from a Chase certificate of deposit in the amount of $800 and interest income from U.S. Savings Bonds in the amount of $2,000. She made a traditional IRA contribution of $7,000. Her husband died in 2018. Jackie has a dependent son, Henry, who is 15. Her itemized deductions are $20,000. She filed a lawsuit against the County of Los Angeles & Fairplex for her injuries due to lax security at the L.A. County Fairgrounds and received compensatory damages of $500,000 and punitive damages of $10,000. Ignore the potential effects of any possible tax credits.

1.What is jackie's filing status for 2020?

2.Calculate Jackies Gross Income for 2020. Show your calculations.

3.What are Jackies Adjustments from Gross Income for 2020? Show your calculations.

4.What is Jackies Adjusted Gross Income for 2020?

5.What is the amount of the standard deduction that is available to Jackie for 2020?

6.Will Jackie claim her itemized deductions or the standard deduction for 2020?

7.What is Ashley's taxable income for 2020?

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8.Calculate Ashley's capital gain/loss on the IBM stock. What amount should be reported as gross income for 2020?

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9.List the income items which are non-taxable for 2020.

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