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 Heathers 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 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 $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 $ 7,952 Medical care expenses $ 1,100 Prescription medicine $ 350 Nonprescription medicine $ 100 New contact lenses for Heather $ 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 wasnt 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, Rebas 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 Heathers 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). Using the information from part a-1, Complete pages 1 and 2, Schedule 1, and Schedule 3 of Form 1040 for Reba. Reba Dixon's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Reba Dixon: 111-11-1111 Heather Dixon: 222-22-2222

Requincomo Amount 38,000 14,400 50 000 1,200 2200 $ 105,800 $ (2) 19,500 19,500 86,300 Description Gross Income Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds Gross income Deductions for AGI Expenses for rental property Total for AGI deductions AGI From AGI deductions Medical expenses State income taxes Charitable contributions Total itemized deductions Standard deduction Greater of itemized deductions or standard deduction Taxable income Tax on taxable income Credits Tax prepayments Tax refund $ $ $ $ $ 972 5,800 12,500 19,272 18,350 19,272 67 028 9,184 1,000 10,000 1,816 (8) (10) BL e NASA ce Suchometer 184 hekim Fomes, 0814 Fom 9,164 Isi 04 100 any mor e and check here acredited or other dependents thom she and check here et ne 12 from me zeroor issoner es Attached x Al Anes 13 and 14 income tax withheld from Forms W2 1099 a EC seenist) 500X Add any amount from Scheduses 16 and 17 These are your total payments is more than ine 15, actine 15 from the 18 This is the amount you overpad afine 19 you want rended to you for 8888 is attached, check here lex000000 Type Checking number 11111111111 me 19 you want applied to your 2019 estimated tax b Sch. 1812 500 10,00 1,816 1115 20 Savings Schedule 1 Schedule Schedule Schedule Nonrefundable Credits Attach to Form 1040 de to www.insgow Fom:1040 for instructions and the best CAO 2018 hann Sequere Y ube credit Altach Form 7116 regard d and dependent care expenses. Anach Form 2441 edits from Form 1863. Ane 19 avings contributions credit Altach Form 8880 50 500 wendy credit Altach Form 5696 om Fom a 3800 8801 ats in the far right column Enter here and include on Form 1040 line 12 55 500 your tax return instructions Schedule 3Form 1069 2018 SA SIMULATION OF AN OFFICIAL U.S. TAX FORM.ITIS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2019 McGraw-Hill Education