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Required Information (The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38.200 in
Required Information (The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38.200 in 2018. She is 45 years old and has been divorced for four years. She receives $1.265 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,200 of rental payments from tenants and she incurred $19,578 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 $2.140 to move their personal belongings, and she and Heather spent two days driving the 1.452 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 at a nearby university. She was awarded a $3,130 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 $5.930 in state income taxes and $12.630 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 $5,925 $1,230 $ 489 $ 230 $ 330 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $1,030 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 $2.130 from her disability insurance. Her employer, the Central Georgia School District, paid 60% of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40% 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: $2,330 of interest income from corporate bonds and $1,630 interest income from the City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,130 but she did not sell any of her stocks. Heather reported $6.460 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). a. Determine Reba's federal income tax refund or taxes payable for the current year. Use Tax Rate Schedule for reference. (Round percentages to two decimal places. Round your Intermedlate computations and final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero If applicable.) Answer is not complete. Amount 38,200 15,180 50,200 1,278 2,330 000000 $ 107,188 19,578 (2) 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 10.578 87.610 Solo (3) 5.930 (5) 13,000 (7) (8) (9) (10) 10,000 2018 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9.525 10% of taxable income $ 9,525 $ 38,700 5952.50 plus 12% of the excess over $9,525 $ 38,700 $ 82,500 $4,453.50 plus 22% of the excess over $38,700 $ 82,500 $157,500 $14.089.50 plus 24% of the excess over $82,500 $157,500 $200,000 $32.089.50 plus 32% of the excess over $157,500 $200,000 $500,000 $45.689 50 plus 35% of the excess over $200,000 $500,000 - $150.689.50 plus 37% of the excess over $500,000 Schedule Y-1- Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,050 10% of taxable income $ 19,050 $ 77,400 $1,905 plus 12% of the excess over $19,050 $ 77,400 $165,000 $8,907 plus 22% of the excess over $77,400 $165,000 $315,000 $28.179 plus 24% of the excess over $165,000 $315,000 $400,000 $64.179 plus 32% of the excess over $315,000 $400,000 $600,000 $91,379 plus 35% of the excess over $400,000 $600,000 $161,379 plus 37% of the excess over $600,000 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 13,600 10% of taxable income $ 13,600 $ 51,800 $1,360 plus 12% of the excess over $13,600 $ 51,800 $ 82,500 $5,944 plus 22% of the excess over $51,800 $ 82,500 $157,500 $12.698 plus 24% of the excess over $82,500 $157,500 $200,000 $30,698 plus 32% of the excess over $157,500 $200,000 $500,000 $44.298 plus 35% of the excess over $200,000 $500,000 $149,298 plus 37% of the excess over $500,000 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 9,525 10% of taxable income $ 9,525 $ 38,700 5952.50 plus 12% of the excess over 59,525 $ 38,700 $ 82,500 $4.453.50 plus 22% of the excess over $38,700 $ 82,500 $157,500 $14.089.50 plus 24% of the excess over $82,500 $157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500 $200,000 $300,000 $45,689.50 plus 35% of the excess over $200,000 $300,000 - $80.689.50 plus 37% of the excess over $300,000
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