Morgan (age 45) is single and provides more than 50% of support of Rosalyn (a family friend age 36), Flo (a niece, age 18), and Jerold (a nephew age 18). Both Rosalyn and Flo live with Morgan. But Jerold (a citizen of France) lives in Canada. Morgan earns a 95,000 salary, contributes 5000 to a traditional IRA and receives sales proceeds of 15000 for an RV that cost 60,000. and was used only for vacations. She incurs 8200 in itemized deductions Income Salary 95,000 Traditional IRA 5000 Gross Income 100,000 Less Deductions for AGI: Traditional IRA -5,000 AGI 95,000 Less the greater of standard deduction or itemized 9350 deduction Personal and dependency exemptions 16200 Taxable Income 69,450 Tax Liability 11,615 Calculation: 6,952.5+(69,450- 50,800) *0.25