Tax Question

Josephine, a single individual received the following income in 2016:

1. salary of $100,000

2. she was in a car accident and received compensatory damages for her broken nose in the amount of 25,000

3. check for $15,000 as a gift from her favorite aunt, Barbara

4. interest income from Township of Clifton bonds in the amount of $1,000

5. refund of 2015 NJ Income Taxes of $2,000 (Josephine itemized her deductions in 2015; her itemized deductions exceeded the standard deduction by $5,000)

Josephine also incurred and paid the following expenses during the year:
6.	Medical expenses $ 5,000
7.	Parking tickets	200
8.	Alimony	24,000
9.	Legal fees associated with divorce proceedings-not tax related	4,000
10.	Charitable contributions - paid on 12/30/16 with a credit card	2,000
Il.	Casualty loss (after $100 floor, but before any further limitations)	1,000
12.	Mortgage payment on principal residence: principal only	10,000
13.	Mortgage payment on principal residence: interest expense	4,500
14.	Property taxes (real estate taxes) on personal residence	4,200
15.	Nephew, Aaron, owns a home and could not make his property tax payment as he is unemployed. Josephine paid Gerardo's property taxes (real estate taxes).	3,000
16.	Federal income tax withheld	8,000
17.	Moving expenses	2,500
18.	Contribution to a traditional IRA	4,000
19.	Cost of new roof on personal residence	14,000
20.	NJ income tax withheld	1,300

Identify items 1 through 20 as follows: income = taxable or not taxable, OR expense = a deduction for AGI, a deduction from AGI or not deductible. *An item can NOT be classified as both income AND an expense.

NOTE: Certain items above require special attention. Provide a sentence or two explaining limitations, rules, etc. for the following items: 5, 6, 10, 11, 15, 19. Please put the sentence next to your response in Part A.

NOTE: When preparing your answer, you do not need to re-type every item and dollar amount. You can simply number your responses 1-20 and provide your answer.

Using the tax formula, beginning with Income Broadly Conceived, provide a detailed calculation of Josephine's 2016 taxable income. Your answer MUST follow the tax formula! I am also looking for your calculation to compare the standard deduction amount to the total itemized deductions. Please in detail.