Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter, Kaly, and
Question:
Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter, Kaly, and 18-year-old son, Parker. Both children lived in Camille’s home, which she owns, for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $105,000 and contributed
$6,000 of it to a qualified retirement account (a for AGI deduction). She also received $10,000 of alimony from her former husband. Finally, Camille paid $5,000 of expenditures that qualified as itemized deductions.
a) What is Camille’s taxable income?
b) What would Camille’s taxable income be if she incurred $14,000 of itemized deductions instead of $5,000?
c) Assume the original facts except that Camille’s daughter, Kaly, is 25 years old and a full-time student. Kaly’s gross income for the year was $5,000.
Kaly provided $3,000 of her own support, and Camille provided $5,000 of support. What is Camille’s taxable income?
Step by Step Answer:
McGraw-Hill's Taxation Of Individuals
ISBN: 9781259729027
2017 Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver