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Please correct my answers: I have also attached the correctted answer for a different dataset for you to use as a reference: Required information [The
Please correct my answers:
I have also attached the correctted answer for a different dataset for you to use as a reference:
Required information [The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2021 . She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,350 to move their personal belongings, and she and Heather spent two days driving the 1,700 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,510 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $6,870 in state income taxes and $14,820 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $1,070 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,840 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $14,210, but she did not sell any of her stocks. Heather reported $6,600 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather's only source of income for the year. Reba had $11,840 of federal income taxes withheld by her employer. Heather made $1,170 of estimated tax payments during the year. Reba did not make any estimated payments. Assume Reba received the correct advance payment for her 2021 individual recovery credit. a-1. Determine Reba's federal income taxes due or taxes payable for the current year. Use Tax Rate Schedule for reference. (Do not round intermediate values. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) 2021 Tax Rate Schedules Individuals Scherule. X-Single Srhedule V_1_Married Filino .Tnintlv or Oualifvino Widnw(er) Required: b. Is Reba allowed to file as a head of household or single? c. Determine the amount of FICA taxes Reba was required to pay on her salary. (Round your final answer to the nearest whole dollar amount.) d. Determine Heather's federal income taxes due or payable. Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates.) for reference. (Round your intermediate computations and final answer to the nearest whole dollar amount.) Answer is complete but not entirely correct. Required information [The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2021 . She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016 ). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,390 to move their personal belongings, and she and Heather spent two days driving the 1,740 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,590 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $7,010 in state income taxes and $15,120 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $1,090 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,880 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $14,490, but she did not sell any of her stocks. Heather reported $6,900 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather's only source of income for the year. Reba had $12,080 of federal income taxes withheld by her employer. Heather made $1,190 of estimated tax payments during the year. Reba did not make any estimated payments. Assume Reba received the correct advance payment for her 2021 individual recovery credit. a-1. Determine Reba's federal income taxes due or taxes payable for the current year. Use Tax Rate Schedule for reference. (Do not round intermediate values. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) a-1. Alimony received: $1,200 per month 12 months =$14,400 Disability insurance payments: $800 of $2,000(40%) of payment excluded because taxpayer paid 40% of premium on insurance policy = $1,200 Medical expenses: $11,440$6,473[7.5%(3)]=$4,968 Tax on taxable income: See head of household tax rate schedule; $6,220+$1,100[22%($59,202$53,700)]=$7,320 Credits: American Opportunity Tax Credit of $185 for $500 tuition paid on Heather's behalf and $500 child tax credit (see Note D) Note A. The moving expenses and repair costs from her accident are nondeductible. Note B. Medical expenses: All of the medical expenses qualify for the deduction except the nonprescription medicine. Note C. The first question we have to answer to determine Reba's filing status is whether she can claim Heather as a dependent. If so, she may qualify for head of household filing status. If not, she will file a single taxpayer. Does Heather qualify as Reba's dependent? Yes, as analyzed below. Note D: Reba may claim a $500 child tax credit for Heather because Heather is a qualifying dependent (but not a qualified child under age 18). Because Reba's AGI($86,300 ) is in the phase-out range for the American Opportunity Tax Credit (i.e., between $80,000 - $90,000 ), she may not take the full $500 AOTC credit. Instead, she is limited to a $185 credit ((\$500 qualified expenses [1(($86,300AGI$80,000 Phase-out threshold) / $10,000 phase-out range)]) =($500[10.63])=$185). Note that 40% of the AOTC is refundable ($1850.40=$74) and appears on line 29 of page 2 , Form 1040; the remaining $111 ( $185$74=$111 ) is nonrefundable and appears on line 20 of page 2 , Form 1040. 2021 individual recovery credit. Required: b. Is Reba allowed to file as a head of household or single? c. Determine the amount of FICA taxes Reba was required to pay on her salary. (Round your final answer to the nearest whole dollar amount.) d. Determine Heather's federal income taxes due or payable. Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates.) for reference. (Round your intermediate computations and final answer to the nearest whole dollar amount.) Head of Household. To qualify as head of household, a taxpayer must pay more than half the costs of maintaining a household that is the principal place of abode for a dependent who is a qualifying child (or for maintaining a separate household for her mother or father if the mother or father also qualifies as a dependent of the taxpayer). Reba pays all the costs of providing the home in which she and Heather reside. Consequently, she may file as a head of household. c. Reba's entire $38,000 is subject to FICA taxes. Because her salary amount is under the social security tax base, Reba pays 7.65% of her salary as FICA taxes. Consequently, her employer should have withheld $2,907 of FICA taxes during the year ($38,0007.65%). d. $(46) refundStep by Step Solution
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