Required informationComprehensive Problem 8-84 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Algo)Skip to question

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Reba Dixon is a fifth-grade school teacher who earned a salary of $37,240 in 2024. 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 $53,800 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 $2,390 to move their personal belongings, and she and Heather spent two days driving the 1,740 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 $3,590 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 $7,010 in state income taxes and $16,070 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:

Insurance premiums	$ 9,600
Medical care expenses	$ 1,100
Prescription medicine	$ 540
Nonprescription medicine	$ 100
New contact lenses for Heather	$ 200

Shortly after the move, Reba got distracted while driving and ran into a street sign. The accident caused $1,090 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: $1,000 of interest income from corporate bonds and $1,880 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $14,490, 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 $12,080 of federal income taxes withheld by her employer. Heather made $1,190 of estimated tax payments during the year. Reba did not make any estimated payments.

Comprehensive Problem 8-84 Part a-2 (Algo)

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, Lawrenceville, GA 30043.

Social security numbers:

Reba Dixon: 111-11-1111

Heather Dixon: 222-22-2222

Note: Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Input all the values as positive numbers. Use 2024 tax rules regardless of year on tax form. Round your intermediate computations and final answers to the nearest whole dollar amount.

Chrome File Edit View History Bookmarks Profiles Tab Window Help zoom + $ 2 Q 8 0 Sat Nov 9 2:12 PM o Mail - Sauder, Nathan Dougla *Dashboard M Question 2 - Ch 8 Application X ChatGPT x ezt.prod.mheducation.com/M C 20 ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBk... Finish update : Ch 8 Application/Critical Thinking Activity (manual grading) i Saved Help Save & Exit Submit You skipped this question in the previous attempt. Check my work 2 Required information Part 2 of 3 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Form 1040 Page 2 12.5 Form 1040 (2023) Page 2 points 6 Tax (see instructions). Check if any from Form(S) 1 8814 2 4972 16 17 Amount from Schedule 2, line 3 17 eBook 18 Add lines 16 and 17 . 18 19 Child tax credit or credit for other dependents from Schedule 8812 19 20 Amount from Schedule 3, line 8 20 Print 21 Add lines 19 and 20 21 22 Subtract line 21 from line 18. If zero or less, enter -0- 22 n 23 References 23 Other taxes, including self-employment tax, from Schedule 2, line 21 24 Add lines 22 and 23. This is your total tax 24 25 Federal income tax withheld from: a Form(s) W-2 25a 12,080 b Form(s) 1099 25b c Other forms (see instructions) 250 d Add lines 25a through 25 25d 12,080 26 2023 estimated tax payments and amount applied from 2022 return 26 If you have a qualifying child 27 Earned income credit (EIC) 2 attach Sch. EIC 28 Additional child tax credit from Schedule 8812 28 29 American opportunity credit from Form 8863, line 8 . 29 30 Reserved for future use 30 Graw Hill 1,618 NOV 9 4 zoom@ Chrome File Edit View History Bookmarks Profiles Tab Window Help 94 & zoom 4 3 = Q & SsatNov9 2:12PM 7 Mail - Sauder, Nathan Dougl: X || % Dashboard X | M Question 2 - Ch 8 Applicatior X | & ChatGPT LR e e U ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBKk... D Finish VL BTN Ch 8 Application/Critical Thinking Activity (manual grading) G Saved Help Save & Exit Submit o You skipped this question in the previous attempt. Required information If you have a Part2of 3 qualifying child, |27 Eamed income credit (EIC) 27 attach Sch. EIC 28 Additional child tax credit from Schedule 8812 28 125 29 American opportunity credit from Form 8863, line 8 . 29 oints . 30 Reserved for future use 30 31 Amount from Schedule 3, line 15 31 32 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits 32 0 33 Add lines 25d, 26, and 32. These are your total payments > 33 12,080 Refund 341 line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid = 35a Amount of line 34 you want refunded to you. If Form 8888 is attached, check here Print b Routing cType: [7] checking savings i ; number Direct deposit? See instructions. P g Account D rumber References 36 Amount of line 34 you want applied to your 2024 estimated tax > 36 Amount 37 Subtract line 33 from line 24. This is the amount you owe. sl s You Owe For details on how to pay, go to www.rs.gov/Payments or see instructions For details on how to pay, see 38 Estimated tax penalty (see instructions) >| 38 instructions. Third Party Do you want to allow another person to discuss this return with the IRS? See Designee s > [ Yes. Complete below. (o Designee's Phone no. Personal identification name b > number (PIN) > Sign Under penalties of perjury, | declare that | have examined this return and accompanying schedules and statements, and to the best of my knowledge and Here belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. . If the IRS sent you an Identity Your signature Date |Youroccupation rotocich PN, ortat H hart See instructions. (see inst) > Joint return? | Chrome File Edit View History Bookmarks Profiles Tab Window Help 1 zoom %+ $ 2 Q 8 0 Sat Nov 9 2:25 PM o Mail - Sauder, Nathan Dougla *Dashboard M Question 2 - Ch 8 Application X ChatGPT x ezt.prod.mheducation.com/M M CLMFE (Sauder, Nathan - Sta C 20 ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBk... Finish update : Ch 8 Application/Critical Thinking Activity (manual grading) i Saved Help Save & Exit Submit You skipped this question in the previous attempt. Check my work 2 Required information SCHEDULE 1 OMB No. 1545-0074 Part 2 of 3 (Form 1040) Additional Income and Adjustments to Income 2023 Department of the Treasury Attach to Form 1040, 1040-SR, or 1040-NR. Attachment Sequence 12.5 Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. No. 01 points Name(s) shown on Form 1040, 1040-SR, or 1040-NR Your social security number Reba Dixon 111-11-111 Part I Additional Income eBook axable refunds, credits, or offsets of state and local income taxes N Alimony received 2a Date of original divorce or separation agreement (see instructions) 12/31/2016 Print Business income or (loss). Attach Schedule C 3 on A W Other gains or (losses). Attach Form 4797 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E References Farm income or (loss). Attach Schedule F 6 Unemployment compensation Other income Net operating loss 82 Gambling 86 Cancellation of debt 8c Foreign earned income exclusion from Form 2555 8d Income from Form 885 Income from Form 8889 8f Alaska Permanent Fund dividends Jury duty pay Prizes and awards Activity not engaged in for profit income Stock options ncome from the rental of personal property if you engaged in Grav Hill 1,618 NOV 9 4 zoomChrome File Edit View History Bookmarks Profiles Tab Window Help zoom + $ 2 Q 8 0 Sat Nov 9 2:25 PM o Mail - Sauder, Nathan Dougla *Dashboard M Question 2 - Ch 8 Application X ChatGPT x ezt.prod.mheducation.com/M M CLMFE (Sauder, Nathan - Sta C so ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBK... Finish update : Ch 8 Application/Critical Thinking Activity (manual grading) i Saved Help Save & Exit Submit You skipped this question in the previous attempt. Check my work 2 vuly uuty way Required information Stock options 8k Part 2 of 3 Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such 81 property Olympic and Paralympic medals and USOC prize money (see 3 instructions) 8m 12.5 Section 951(a) inclusion (see instructions) 8n points Section 951A(a) inclusion (see instructions) 80 Section 461(1) excess business loss adjustment 8p axable distributions from an ABLE account (see instructions) 8g eBook Scholarship and fellowship grants not reported on Form W-2 8r Nontaxable amount of Medicaid waiver payments included on Form 8s 1040, line 1a or 1d Pension or annuity from a nonqualifed deferred compensation plan or a nongovernmental section 457 plan 8t Print Wages earned while incarcerated 8u Disability n Other income. List type and amount insurance 8z References payments 9 Total other income. Add lines 8a through 8z 9 10 Combine lines 1 through 7 and 9. This is your additional income. Enter here and on Form 10 1040, 1040-SR, or 1040-NR, line 8 Part II Adjustments to Income 11 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 12 Health savings account deduction. Attach Form 8889 13 14 Moving expenses for members of the Armed Forces. Attach Form 3903 14 Deductible part of self-employment tax. Attach Schedule SE 15 Self-employed SEP, SIMPLE, and qualified plans 16 Self-employed health insurance deduction Penalty on early withdrawal of savings 18 19 Alimony paid 19a Recipient's SSN Grav Next > Hill NOV 9 4 zoom