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Reba Dixon is a fifth-grade school teacher who earned a salary of $42,000 in 2023 . She is 45 years old and receives $1,200 of
Reba Dixon is a fifth-grade school teacher who earned a salary of $42,000 in 2023 . She is 45 years old and 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 $2,450 to move their personal belongings, and she and Heather spent two days driving the 1,800 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 $3,710 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 $7,220 in state income taxes and $15,570 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 ran into a street sign. The accident caused $1,120 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. Shortly after the move, Reba got distracted while driving and ran into a street sign. The accident caused $1,120 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 \$1,940 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $14,930, 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 $12,440 of federal income taxes witheld by her employer. Heather made $1,220 of estimated tax payments during the year. Reba did not make any estimated payments. 2. Complete pages 1 and 2 of Form 1040 for Reba. ote: Visit the IRS website and download Form 1040. Enter the required values in the appropriate fields. Save your completed Tax Form to your omputer and then upload it here by clicking "Browse." Next, click "Save." Use 2023 tax rules regardless of the year on the form
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