Question 2 Cassie Snell is a dog expert employed by Camp Bow Wow and earns a salary of S38,000 in 2018. She is 45 years old and has been divorced for four years. She received $1,200 of alimony payments each month from her former husband (divorced in 2016). Cassie also rents out many units using Air BnB Cassie received $50,000 of rental gross income and had $19,500 of rental expenses. Cassie and her daughter Emma (20 years old at the end of the 2018) moved to Alabama in January of 2018. Cassie provides more than one-half of Emma's support. They had been living in Montana for the past 15 years but ever since her divorce, Cassie has been wanting to move back to Alabama to be closer to her family Luckily, last December, a dog expert position opened up and Cassie and Emma to make the move Cassie paid a moving company $2,010 to move their personal belongings, and she and Emma spent two days driving the 1,426 miles to Alabama. Cassie rented a home in Alabama. Emma decided to continue living at home with her mom, but she started attending school full-time in January at a nearby college. She was awarded a $3,000 partial tuition scholarship this year, and Cassie helped out by paying the remaining $500 tuition cost. If possible, Cassie thought it would be best to claim the education credit for these expenses. Cassie 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. Cassie paid S5,800 in state taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Emma Insurance premiums Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for EmmaS 200 S5,795 $1,100 350 S 100 Shortly after the move, Cassie got distracted while driving and had a car accident. The accident caused $900 in damage to the car and she suffered some injuries. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Cassie wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Camp Bow Wow, paid 60% of the premiums on the policy as a nontaxable fringe benefit and Cassie paid the remaining 40% portion. A few years ago, Cassie 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 $1,500 interest income from the City of Ellisville municipal bonds. Overall, Cassie's stock portfolio appreciated by $12,000 but she did not sell any of her stocks Emma reported S6,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Emma's only source of income for the year. Cassie had S10,000 of federal income taxes withheld by her employer. Emma made $1,000 of estimated tax payments during the year. Cassie did not make any estimated payments. Cassie had qualifying insurance for purposes of the Affordable Care Act (ACA) Determine the following for Cassie Snell: (Show the details of your work in order to qualify for partial credit.) 1. AGI (Adjusted gross income) 2. Taxable Income 3. Tax Owed or Refund Question 2 Cassie Snell is a dog expert employed by Camp Bow Wow and earns a salary of S38,000 in 2018. She is 45 years old and has been divorced for four years. She received $1,200 of alimony payments each month from her former husband (divorced in 2016). Cassie also rents out many units using Air BnB Cassie received $50,000 of rental gross income and had $19,500 of rental expenses. Cassie and her daughter Emma (20 years old at the end of the 2018) moved to Alabama in January of 2018. Cassie provides more than one-half of Emma's support. They had been living in Montana for the past 15 years but ever since her divorce, Cassie has been wanting to move back to Alabama to be closer to her family Luckily, last December, a dog expert position opened up and Cassie and Emma to make the move Cassie paid a moving company $2,010 to move their personal belongings, and she and Emma spent two days driving the 1,426 miles to Alabama. Cassie rented a home in Alabama. Emma decided to continue living at home with her mom, but she started attending school full-time in January at a nearby college. She was awarded a $3,000 partial tuition scholarship this year, and Cassie helped out by paying the remaining $500 tuition cost. If possible, Cassie thought it would be best to claim the education credit for these expenses. Cassie 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. Cassie paid S5,800 in state taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Emma Insurance premiums Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for EmmaS 200 S5,795 $1,100 350 S 100 Shortly after the move, Cassie got distracted while driving and had a car accident. The accident caused $900 in damage to the car and she suffered some injuries. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Cassie wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Camp Bow Wow, paid 60% of the premiums on the policy as a nontaxable fringe benefit and Cassie paid the remaining 40% portion. A few years ago, Cassie 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 $1,500 interest income from the City of Ellisville municipal bonds. Overall, Cassie's stock portfolio appreciated by $12,000 but she did not sell any of her stocks Emma reported S6,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Emma's only source of income for the year. Cassie had S10,000 of federal income taxes withheld by her employer. Emma made $1,000 of estimated tax payments during the year. Cassie did not make any estimated payments. Cassie had qualifying insurance for purposes of the Affordable Care Act (ACA) Determine the following for Cassie Snell: (Show the details of your work in order to qualify for partial credit.) 1. AGI (Adjusted gross income) 2. Taxable Income 3. Tax Owed or Refund