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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 $38,400 in 2019. She

The following information applies to the questions displayed below.]

Reba Dixon is a fifth-grade school teacher who earned a salary of $38,400 in 2019. She is 45 years old and has been divorced for four years. She receives $1,300 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 $2,210 to move their personal belongings, and she and Heather spent two days driving the 1,466 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 Januaryand throughout the rest of the year at a nearby university. She was awarded a $3,200 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 $6,000 in stateincome taxes and $12,700 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:

Insurance premiums$8,152

Medical care expenses$1,300

Prescription medicine$550

Nonprescription medicine$300

New contact lenses for Heather$400

Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $1,100 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 $2,200 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: $2,400 of interest income from corporate bonds and $1,700 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,200 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 $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).

Required:

  1. Is Reba allowed to file as a head of household or single?
  2. Determine the amount of FICA taxes Reba was required to pay on her salary.(Round your final answer to the nearest whole dollar amount.)
  3. Determine Heather's federal income taxes due or payable.Use Tax Rate Schedule,Dividends and Capital Gains Tax Rates,Estates and Trustsfor reference.(Round your intermediate computations and final answer to the nearest whole dollar amount.)

image text in transcribed
9 Answer is complete but not entirely!r correct. Status of I. Tax refund 9

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