Kevin is single. In 2020, he earned $65,000 in salary this year from his employer and received $10,000 in alimony from his ex-wife. They divorced on July 1, 2017. His employer withheld $9,000 in tax from his salary this year. In addition to the above, the following occurred this year:

• He decided he did not like his nose. So he paid $2,000 in cosmetic surgery to make it larger and more defined.
• He paid $2,500 in union dues and for subscriptions to publications related to his work that were not reimbursed by his employer.
• He paid $15,000 in rent his apartment for the year.

1. Determine Kevin’s AGI for 2020.

2. Ignore your answer in a). Assume that Kevin’s AGI for the year is $78,650. Determine the amount of itemized deduction Kevin has available this year.

3. Ignore your answer in b). Assume that the amount of itemized deduction available is $2,780. Using the 2020 standard deduction amounts (assuming no additional amounts for age or blindness) from Appendix D in your book, first determine whether Kevin will itemize or take the standard deduction. If you determine he itemizes, write in the itemized deduction dollar amount given ($2,780). Alternatively, if you determine he will take the standard deduction, write in the standard deduction amount for which he qualifies (tied to the appropriate filing status).

4. Ignore your answer in a) - c). Assume that Kevin’s taxable income is $42,720 and his employer withheld $9,000 in tax from his wages. Using the tax rate schedule from Appendix D in your book, determine the amount of taxes due or the amount of refund. Remember to clearly mark the answer as either the amount of tax due or a refund due (e.g. refunds are negative amounts as represented with parentheses or a negative sign). Assume AMT does not apply, and there are no tax credits available. 

Table 1. 2020 Tax Brackets and Rates

Rate	For Single Individuals, Taxable Income Over	For Married Individuals Filing Joint Returns, Taxable Income Over	For Heads of Households, Taxable Income Over
10%	$0	$0	$0
12%	$9,875	$19,750	$14,100
22%	$40,125	$80,250	$53,700
24%	$85,525	$171,050	$85,500
32%	$163,300	$326,600	$163,300
35%	$207,350	$414,700	$207,350
37%	$518,400	$622,050	$518,400

Filing status		2020 tax year
Single		$12,400
Married, filing jointly		$24,800
Married, filing separately		$12,400
Head of household		$18,650