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 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 1,426 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 tultion 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 premiums 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, pald 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) Description Amount $ $ $ $ 38,000 14,400 50,000 1,200 2,200 0 105,800 $ $ $ Gross Income: Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds (1) Gross income Deductions for AGI: Expenses for rental property (2) Total for AGI deductions (3) AGI From AGI deductions: Medical expenses State income taxes Charitable contributions (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 Tax refund $ $ $ 19,500 19,500 86,300 $ $ $ $ 972 5,800 12,500 19,272 18,350 19,272 67,028 9,184 $ $ $ $ $ 685 $ 10,000 1,501 $ 1 5,800 2b 3b 4b 5b 6 5,800 7 B 9 10 0 11 1 Wagos, salaries, tips, etc. Attach Form(s) W-2 Form(s) W-2. Also 20 b Taxable interest Form(s) W-26 and 2a Tax-exempt interest if tax was 3a Qualified dividends 30 b Ordinary dividends 4a IRAs, pensions, and annuities 4a Taxable amount 5a Social security benefits Sa b Taxable amount d deduction for 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1 or Married filing ine 36, from line 6 aly $12,000 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- dfling joindy or g widower), 11 a Tox (see inst.) (check if any from: 1. Form(s) 8814 2. Form 4972 3. b Add any amount from Schedule 2 and check here f household 12 a Child tax credit credit for other dependents b Add any amount from Schedule 3 and check here 13 Subtractine 12 from line 11. If zero or less, enter-O- 14 Otheraxos. Attach Schedule 4 hecked any box 15 Total tax. Add lines 13 and 14 andard see 16 Federal income tax withheld from Forms W-2 and 1099 17 Refundable credits: a EIC (see inst) b Sch. 8812 Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpeid 20a Amount of line 19 you want refunded to you. If Form 3888 is attached, check here osit? See Routing number Type: Checking Savings d Account number 21 Amount of line 10 you want applied to your 2019 estimated tax 21 You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 23 Estimated tax penalty (see instructions) 23 12 13 14 0 15 16 17 18 19 lololo 20a 22