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Morgan (age 45) is single and provides more than 50% of the support of Tammy (a family friend, age 36), Jen (a niece, age 18),
Morgan (age 45) is single and provides more than 50% of the support of Tammy (a family friend, age 36), Jen (a niece, age 18), and Jerold (a nephew, age 18). Both Tammy and Jen live with Morgan, but Jerold (a citizen of France) lives in Canada. Morgan earns a $95,000 salary, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used only for vacations. She incurs $8,200 in itemized deductions. Click here to access the standard deduction table to use if required. a. Morgan's taxable income is $ 81,800 x. b. Using the Tax Rate Schedules (click here), tax liability for Morgan is $ 10,388 x for 2019. c. Compute Morgan's dependent tax credit. $ 0 x Basic Standard Deduction Amounts Filing Status 2018 2019 Single $12,000 $12,200 Married, filing jointly 24,000 24,400 Surviving spouse 24,000 24,400 Head of household 18,000 18,350 Married, filing separately 12,000 12,200
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