Reba Dixon is a fifth grade school teacher who earned a salary of $38,000 in 2020. 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 $2,010 to move their personal belongings, and she and Heather spent two days driving the 1426 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 $3,000 partial tution 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 $5,800 in state income taxes and $12,500 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather Insurance premium Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for Heather $7,952 $1,100 $350 $ 100 $ 200 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $900 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 $1,500 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,000, but she did not sell any of her stocks Heather reported $6.200 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 $10,000 of federal income taxes withheld by her employer Heather made $1,000 of estimated tax payments during the year Reba did not make any estimated payments. Reba had qualifying insurance for purposes of the Affordable Care Act (ACA) 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. a Determine Heather's federal income taxes due or payable. Use Fox Rate Schedule. Dividends and Capital Gains Tax Rates. Estates and Trusts for reference b Head of household Status of taxpayer FICA taxes Tax refund d Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9.875 10% of taxable income $ 9.875 $ 40.125 $987.50 plus 12% of the excess over $9.875 $ 40.125 $ 85,525 $4.617.50 plus 22% of the excess over $40.125 $ 85,525 $163,300 $14.605.50 plus 24% of the excess over $85.525 $163,300 $207,350 $33.271.50 plus 32% of the excess over $163.300 $207,350 $518.400 $47.367.50 plus 35% of the excess over $207,350 $518,400 $156,235 plus 37% of the excess over $518.400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19.750 10% of taxable income $ 19.750 $ 80,250 $1.975 plus 12% of the excess over $19,750 $ 80,250 $171,050 $9.235 plus 22% of the excess over $80.250 $171.050 $326,600 $29.211 plus 24% of the excess over $171.050 $326.600 $414.700 $66,543 plus 32% of the excess over $326,600 $414.700 $622.050 $94.735 plus 35% of the excess over $414.700 $622.050 $167.307.50 plus 37% of the excess over $622,050 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: $ 0 $ 14,100 10% of taxable income $ 14,100 $ 53.700 $1.410 plus 12% of the excess over $14.100 $ 53,700 $ 85,500 $6.162 plus 22% of the excess over $53,700 $ 85,500 $163.300 $13,158 plus 24% of the excess over $85.500 $163.300 $207,350 $31.830 plus 32% of the excess over $163,300 $207,350 $518,400 $45.926 plus 35% of the excess over $207.350 $518.400 $154.793.50 plus 37% of the excess over $518.400 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $ 9.875 10% of taxable income $ 9.875 $ 40,125 $987.50 plus 12% of the excess over $9,875 $ 40,125 S 85.525 $4,617.50 plus 22% of the excess over $40,125 $ 85.525 $163,300 $14.605.50 plus 24% of the excess over $85,525 $163,300 $207,350 $33.271.50 plus 32% of the excess over $163,300 $207,350 $311,025 $47,367.50 plus 35% of the excess over $207,350 $311,025 $83.653.75 plus 37% of the excess over $311.025 Tax Rates for Net Capital Gains and Qualified Dividends Rate 096 15% 2094 Married Filing Jointly $0-$80,000 $80,001 - $196,600 $196,601+ Married Filing Separately $0-$40,000 $40,001 - $248,300 $248,301+ Taxable income Single $0 $40,000 $40,001 - $441.450 $441.451+ Head of Household $0-$53,600 $53,601 - $169,050 $469.051 Trusts and Estates 0-$2,650 $2,651 - $13,150 $13,151+ Estates and Trusts The tax is: If taxable income is over. But not over: $ 0 $ 2,600 $ 2.600 $ 9,450 $ 9,450 $12.950 $12.950 10% of taxable income $260 plus 24% of the excess over $2,600 $1,904 plus 35% of the excess over $ 9.450 $3.129 plus 37% of the excess over $12.950