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Maria is a Paralegal at Dewey, Cheatham & Howe, a law firm in Arizona. Information about her 2018 income and expenses is as follows: Income

Maria is a Paralegal at Dewey, Cheatham & Howe, a law firm in Arizona. Information about her 2018 income and expenses is as follows:

Income received

Salary $150,000

Taxes withheld from Salary:

Federal Income tax $30,000

State Income Tax 9,000

Social Security Tax 7,961

Medicare Tax 2,175

Interest income from bank 6,000

Dividend income from U.S. Stocks 4,000

Short-Term Capital Gain 2,000

Long-Term Capital Gain 3,000

State income tax refund from last year 500

Expenses Paid:

Unreimbursed dental and eye-care costs 1,800

Property taxes on her home 3,900

Fees paid to town for garbage pickup 400

Stock donated to American Red Cross; FMV $5,000;

Purchased in 2014 for $2,500

Home mortgage interest 10,000

Interest on car loan 300

In addition, she operates a small pottery activity to try to make some money. This year she reported the following income and expenses from this activity:

Revenue from sale of pottery $ 9,000

Depreciation on potter's wheel (3,000)

Property taxes on shed where she does pottery (1,200)

Supplies used such as clay, etc. (6,500)

COMPUTE Maria's TAXABLE INCOME for 2018. Show all supporting computations.

Maria is single, and she elects to itemize her deductions each year. Also assume that her tax profile was similar in the preceding year.

Use U.S. tax laws from 2018.

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