Question

Question: Basic Scenario 7: Evie Adams #20 what is the total amount of adjustments on Evie's tax return?

Basic Scenario 7: Evie Adams. Evie is single and has two young girls who lived with her all year. Evie paid more than half of the support for her daughters and all the cost keeping up the home.

Evie was unemployed for two months March and April. She cashed in her 401k and used the money to pay for living expenses. Evie is paying off a student loan that she took out when she attended college for her bachelors degree.

She took some courses this year at College to improve her job skills as an educator. She did not receive a Form 1098T for 2018. Evie was an elementary school teacher from May to Dec and paid $550 out of pocket for classroom supplies.

She went to the local casino and won some money in 2019. During the interview she mentions that she had gambling losses of $700.

Question 20: What is the total amount of adjustments on Evie's tax return?

Evie's income:

W2 $33,000

W2 $3,500

W2G Gambling winnings $2000

1099G Unemployment Commission $2,200

1099R Distribution from Annuity $2,000

Other:

1098E Student loan interest received by lendeer $600

1098T TuitionPaid $2800

Child Care Paid $3000

Question 22: What is the total federal income tax witheld on Evie's tax return?

Answer 1

Deductions	(Amount $)
Standard deduction: As per Internal Revenue Service (IRS) standard deduction amounts by filing status:Head of Household for the tax year 2019 is $ 18350. As in given scenario Evie Adams is single and have two young girls who lived with her and she paid more than 50 % of expenses she qualifies as Head of Household and accordingly Standard deduction for tax year 2019 is	18,350
Student loan: Student loan can be deducted up to $2,500 of the interest paid on an eligible student loan. If amount paid less than that, deduction is capped at whatever amount is paid. If amount paid is more than $600 in interest for the year, assesse should receive a Form 1098-E from the lending institution. In given scenario the loan interest paid is less than $ 2500 hence full amount paid is allowed as deduct ion.	600
Out of pocket expenses: An eligible educator can deduct up to $250 ($500 if married filing jointly and both spouses are eligible educators, but not more than $250 each) of unreimbursed trade or business expenses. One is an eligible educator if, for the tax year one is a kindergarten through grade 12 teacher, instructor, counselor, principal or aide for at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law. Hence in given scenario Evie qualifies as eligible educator and deduction is available for out of pocket expenses.	250
Gambling Losses: Deduction for gambling losses is available only if deductions on Schedule A (Form 1040 or 1040-SR) (PDF) are itemized and kept a record of winnings and losses. The amount of losses deductible can not be more than the amount of gambling income reported on return. Claim gambling losses up to the amount of winnings, as "Other Itemized Deductions.". Hence in given scenario the Gambling winning is $ 2000 so she may claim deduction of $700 as gambling loss if she meet all the requirement as mentioned above.	700
Total amount of adjustments on Evie's tax return	19,900