Question

Required information (The following information applies to the questions displayed below.) Camille Sikorski was divorced in 2017. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille's home for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $70,000 and contributed $4,800 of it to a qualified retirement account (a for AGI deduction). She also received $9,000 of alimony from her former husband (per divorce decree issued in 2017). Finally, Camille paid $15,900 of expenditures that qualified as itemized deductions. (Use the tax rate schedules and 2019 rules.) a. What is Camille's taxable income? Amount Description (1) Gross Income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) Lesser of standard deductions or itemized deductions Taxable income

Answer 1

Part A

	Description	Amount
(1)	Gross income (70000+9000)	79000
(2)	For AGI deductions	4800
(3)	Adjusted gross income	74200
(4)	Standard deduction	18350
(5)	Itemized deductions	15900
(6)	Greater of standard deduction or itemized deduction	18350
	Taxable income	$55850

Camille is eligible to file as head of household as she is unmarried at the end of the tax year and has one qualifying dependent. She pays more than half the support to Kaly, her daughter, who stays with in her home for the entire year and she is below 19 years. Thus, Camille can claim her as qualifying dependent.

Part C

	Description	Amount
(1)	Gross income (70000+9000)	79000
(2)	For AGI deductions	4800
(3)	Adjusted gross income	74200
(4)	Standard deduction	12200
(5)	Itemized deductions	15900
(6)	Greater of standard deduction or itemized deduction	15900
	Taxable income	$58300

Camille is eligible to file as head of household though she is unmarried at the end of the tax year but she cannot claim Kaly as her dependent. Kaly is above 24 years full time student. So she cannot be claimed as qualifying child. For qualifying relative, she does meet income test. Her income is above $4200 and thus Camille provide less than 50% support to her. Thus, Camille can file as a single.