Reba Dixon Is a fifth-grade school teacher who earned a salary of $38,000 In 2019. She Is 45 years old and has been divorced for four years. She recelves $1,200 of allmony payments each month from her former husband (divorced In 2016). Reba also rents out a small apartment bullding. This year Reba recelved $50,000 of rental payments from tenants and she Incurred $19,500 of expenses assoclated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgla In January of this year. Reba provides more than one-half of Heather's support. They had been Ilving in Colorado for the past 15 years, but ever slnce her divorce, Reba has been wanting to move back to Georgla to be closer to her family. Luckily, Iast December, a teaching positlon opened up and Reba and Heather decided to make the move. Reba pald a moving company $2,010 to move thelr personal belongings, and she and Heather spent two days driving the 1,426 mles to Georgla. Reba rented a home In Georgla. Heather declded to continue IiMing 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 partlal tultlon scholarship this year, and Reba helped out by paylng the remalning $500 tultlon cost. If possible, Reba thought It would be best to clalm the educatlon 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 pald $5,800 In state Income taxes and $12,500 In charltable contributions during the year. She also pald the following medlcal-related expenses for herself and Heather $7,952 $1,100 $350 100 200 Insurance premiums Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for Heather Shortly after the move, Reba got distracted while driving and she ran Into a street sign. The accldent caused $900 In damage to the car and gave her whiplash. Because the repalrs were less than her Insurance deductible, she pald the entire cost of the repalrs. Reba wasn't able to work for two months after the accldent. Fortunately, she recelved $2,000 from her disability Insurance. Her employer, the Central Georgla School DIstrict, pald 60 percent of the premlums on the policy as a nontaxable fringe benefit and Reba pald the remalning 40 percent portlon. A few years ago, Reba acqulred several Investments with her portlon 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 municlpal bonds. Overall, Reba's stock portfollo appreclated by $12,000 but she dld not sell any of her stocks. Heather reported $6,200 of Interest Income from corporate bonds she recelved 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 qualifylng Insurance for purposes of the Affordable Care Act (ACA) a. Determine Reba's federal income taxes due or taxes payable for the current year. Use Tax Rate Schedule for reference. (Round your intermediate computations and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.) Description Amount Gross Income: 38,000 Salary Alimony received $ 14,400 50,000 Rental receipts Disability insurance payments $ 1,200 Interest income from corporate bonds 2,200 Interest income from municipal bonds $ 0 (1) Gross income 105,800 Deductions for AGI: Expenses for rental property 19,500 (2) Total for AGI deductions $ 19,500 (3) AGI From AGI deductions: 86,300 Medical expenses 5,800 State income taxes $ Charitable contributions 12,500 (4) Total itemized deductions (5) Standard deduction (6) Greater of itemized deductions or standard deduction (7) Taxable income (8) Tax on taxable income (9) Credits (10) Tax prepayments