Question
Required information [The following information applies to the questions displayed below.] Camille Sikorski was divorced in 2018. She currently provides a home for her 15-year-old
Required information [The following information applies to the questions displayed below.]
Camille Sikorski was divorced in 2018. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camilles home for the entire year, and Camille paid for all the costs of maintaining the home. Camille received a salary of $90,000 and contributed $5,600 of it to a qualified retirement account (a for AGI deduction). She also received $13,000 of alimony from her former husband (per divorce decree issued in 2018). Finally, Camille paid $16,700 of expenditures that qualified as itemized deductions. (Use the tax rate schedules and 2020 rules.)
a. What is Camilles taxable income?
b. What would Camilles taxable income be if she incurred $32,500 of itemized deductions instead of $16,700?
c. Assume the original facts but now suppose Camilles daughter, Kaly, is 25 years old and a full-time student. Kalys gross income for the year was $6,700. Kaly provided $4,020 of her own support, and Camille provided $6,700 of support. What is Camilles taxable income?
fill out the following For (a) (b) and (c) each separately
1 | gross income | ||||||
2 | for AGI deductions | ||||||
3 | adjusted gross income | ||||||
4 | standard deduction | ||||||
5 | itemized deduction | ||||||
6 | ? | ||||||
Taxable income |
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