Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is the whole problem. Need to calculate federal taxes due or needed to be paid. Check r Required information The following information applies to

This is the whole problem. Need to calculate federal taxes due or needed to be paid.

image text in transcribed

image text in transcribed

image text in transcribed

Check r Required information The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38,300 in 2018. She is 45 years old and has been divorced for four years. She receives $1,21 2016). Reba also rents out a small apartment building. This year Reba received $50,500 of rental payments from tenants and she incurred $19,695 of expenses associated with the rental. 0 of alimony payments each month from her former husband (divorced in 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 $2,030 to move their personal belongings, and she and Heather spent two days driving the 1,430 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 $3,020 partial tuition scholarship this year, and Reba helped out by paying the remaining $520 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, sh kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,820 in state income taxes and $12,520 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 220 $5,815 $1,120 $ 350 $ 120 Prey 1 of 1 Next Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $920 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 $2,020 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: $2,220 of interest income from corporate bonds and $1,520 interest income from the City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,020 but she did not sell any of her stocks Heather reported $6,240 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). Use Tax Rate Schedule for reference. (Round your a. Determine Reba's federal income taxes due or taxes payable for the current year intermediate computations and final answers to the nearest whole dollar amount. Leave no answer blank. applicable.) Enter zero if Description Gross Income: Salary Alimony received Rental receipts $ 38,300 14,520 50,500 Prey of 1l Next Saved Gross Income: Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds $ 38,300 14,520 50,500 1,212 2,220 (1) Gross income S 106,752 Deductions for AGI Expenses for rental property (2) Total for AGI deductions (3) AGI 19,695 19,695 87,057 From AGIl deductions: Medical expenses State income taxes 5,820 Charitable contributions (4) Total itemized deductions (5) Standard deduction 12,520 (7) Taxable income (8) Tax on taxable income (9) Credits (10) Tax prepayments Prey 1 of 1 Next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions