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Maxine McQuen is 5 2 years old woman; she has a 1 2 - year - old son Max and a 3 - year -
Maxine McQuen is years old woman; she has a yearold son Max and a yearold daughter Tina. She rents an apartment with two roommates. She received dividend income in from Cisco Inc. and IBM totaling $ She had to leave work early due to an injury she sustained at har inh while performing her job in August of She currently received a payment of $ from her Job, as a settlement to the injuries she sustained and up to August her earned income was $ with $ in withholding's. She was also able to receive early social security due to her injury and received $ in She had to cash in EE saving bonds in December of which she was saving for her son's education to pay for necessities, the value she received was $ which included $ in interest. Her daughter needs care for hours a day while Maxine goes to therapy for her injuries. She was able to get a very good deal using her friend's mother which only charges her $ a week, which is just an extra expense since her injury. Before she sustained her injury life was very different, she thought that she was going to be able to move up in her company and had double the minimum of life insurance her company offered. The minimum the company offered was $ She was also very generous, donating $ to her church as well as giving money directly to people experiencing homelessness, which she estimates to be about $ for the year. She is very fashion conscious and gives away her clothes on a yearly basis every spring to the Salvation Army, the clothes she gave away in the Spring of had a FMV of $ and a cost of $ Her state income tax was $ and her sales tax totaled $ The interest she pays on her car totaled $ for the year and she uses her car to go to her therapy appointments which are miles away. Other expenses for her car for included: $ in gas, $ in new brakes, $ in car washes, and $ in tolls and parking meters when she goes for her therapy. She also received nontaxable stock dividends from her job as an incentive bonus, back on May due to a very good fiscal year for the company.
Back when her life was different on March she purchased shares of the common stock for $ Now in November of she sold shares at $ a share.
Find Maxine's Taxable income and Tax liability for tax year
B Maxine Is very concerned for her and her children's future, what advice from a tax standpoint can you give Maxine?
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