Question
Morgan (age 45) is single and provides more than 50% of the support of Tammy (a family friend), Jen (a niece, age 18), and Jerold
Morgan (age 45) is single and provides more than 50% of the support of Tammy (a family friend), Jen (a niece, age 18), and Jerold (a nephew, age 18). Both Tammy and Jen live with Morgan, but Jerold (a French citizen) lives in Canada. Morgan earns a salary of $95,000, contributes $5,000 to a traditional IRA, and receives sales proceeds of $15,000 for an RV that cost $60,000 and was used for vacations. She has $8,200 in itemized deductions. Ignore any credits for which she may qualify. Click here to access the standard deduction table to use if required. a. Morgan's taxable income is $fill in the blank 1 . b. Using the Tax Rate Schedules (click here), tax liability for Morgan is $fill in the blank 2 for 2021. c. Compute Morgan's dependent tax credit.
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