Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below] Rebn Divon is a fifth-grade school teacher who earned a salary of $38,000 in

image text in transcribedimage text in transcribed
image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below] Rebn Divon is a fifth-grade school teacher who earned a salary of $38,000 in 2021 . She is 45 years old and has been divorced for four years. She 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 recelved $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, Roba has been wanting to move back to Georgia to be closer to her family. Lucklly, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,310 to move their personal belongings, and she and Heather spent two days driving the 1,660 miles to Georgia. Roba 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 $3.450 partial tultion 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 $6,730 in state income taxes and $14,520 in charitable contributions during the yoar, She also paid the following medical-related expenses for herself and Heather: Shortly after the move, Rebe got distracted while driving and she ran into a street sign. The accident caused $1,050 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 nontaxsble 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 $1,800 interest income from Cily of Denver municipal bonds. Overali, Reba's stock portfolio appreciated by $13,930, 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 $11,600 of federal income taxes withheld by her employer. Heather made $1150 of estimated tax payments during the yeac. Rebo did not make any estimated payments. Assume Reba received the correct advance payment for her 2021 indlvidual recovery credt. a-1. Determine Reba's federal income taxes due or taxes payable for the current year. Use. Tax Rote Schedule for reference, (Do not round intermediate values. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Essentials Of Federal Taxation 2019

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

10th Edition

1260189988, 1260189678, 9781260189674, 978-1259917103, 125991710X, 978-1260190045

More Books

Students also viewed these Accounting questions

Question

Discuss the significance of modified bases within tRNA molecules.

Answered: 1 week ago

Question

Compared to Wealthsimple -...

Answered: 1 week ago