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[The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $36,000 in 2023.
[The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $36,000 in 2023. 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 $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 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 $2,330 to move their personal belongings, and she and Heather spent two days driving the 1,680 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 $3,480 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 $6,800 in state income taxes and $14,670 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. $ 9,320 $ 1,100 $ 510 $ 100 $ 200 Shortly after the move, Reba got distracted while driving and ran into a street sign. The accident caused $1,060 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: $2,200 of interest income from corporate bonds and $1,820 interest income from 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 $1,820 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $14,070, but she did not sell any of her stocks. Heather reported $6,600 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 $11,720 of federal income taxes withheld by her employer. Heather made $1,160 of estimated tax payments during the year. Reba did not make any estimated payments. a-1. Determine Reba's federal income taxes due or taxes payable for the current year. Tax Rate Schedule. Note: Do not round intermediate values. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable. Description Amount Gross Income: Salary $ 36,000 Alimony received $ 14,400 Rental receipts $ 50,000 Disability insurance payments $ 1,200 Interest income from corporate bonds $ 2,200 Interest income from municipal bonds $ 0 (1) Gross income S 103,800 Deductions for AGI: Expenses for rental property $ 19,500 (2) Total for AGI deductions (3) AGI From AGI deductions: $ 19,500 $ 39,000 Medical expenses $ 972 State income taxes $ 5,800 Description Amount Gross Income: Salary $ 36,000 Alimony received $ 14,400 Rental receipts $ 50,000 Disability insurance payments $ 1,200 Interest income from corporate bonds. $ 2,200 Interest income from municipal bonds $ (1) Gross income + $ 103,800 Deductions for AGI: Expenses for rental property: $ 19,500 (2) Total for AGI.deductions $ 19,500 $ 39,000 (3) AGI From AGI deductions: Medical expenses $ 972 State income taxes $ 5,800 Charitable contributions $ 14,240 (4) Total itemized deductions $ 25,367 (5) Standard deduction 25,367 (7) Taxable income. $ 58,532 (8) Tax on taxable income $ 8,626 (9) Credits $ 500 (10) Tax prepayments $ 3,254 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 2023 tax rules regardless of year on tax form. Round your intermediate computations and final answers to the nearest whole dollar amount. 1040 for a Head of household with one dependent. 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Form 1040 Schedule 1 SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Additional Income and Adjustments to Income Attach to Form 1040, 1040-SR, or 1040-NR Go to www.irs.gov/Form1040 for instructions and the latest information. Name(s) shown on Form 1040, 1040-SR, or 1040-NR Part I Additional Income OMB No. 1545-0074 2022 Attachment Sequence No. 01 Your social security number 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 $1,820 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $14,070, but she did not sell any of her stocks. Heather reported $6,600 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 $11,720 of federal income taxes withheld by her employer. Heather made $1,160 of estimated tax payments during the year, Reba did not make any estimated payments. Required: b. Is Reba allowed to file as a head of household or single? c. Determine the amount of FICA taxes Reba was required to pay on her salary. Note: Round your final answer to the nearest whole dollar amount. d. Determine Heather's federal income taxes due or payable. Use Tax Rate Schedule. Dividends and Capital Gains Tax Rates.) for reference. Note: Round your intermediate computations and final answer to the nearest whole dollar amount. b. Status of taxpayer c. FICA taxes
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