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 $60,000 and contributed $4,400 of it to a qualified retirement account (a for AGI deduction). She also received $7,000 of alimony from her former husband (per divorce decree issued in 2017). Finally, Camille paid $15,500 of expenditures that qualified as itemized deductions. (Use the tax rate schedules and 2019 rules.) a. What is Camille's taxable income? Description Amount (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) Taxable income

Answer 1

a)
	Description	Amount
1)	Gross Income	$ 67,000.00
2)	For AGI deduction	$    4,400.00
3)	Ajusted Gross Income [Gross Income - AGI Deduction]	$ 62,600.00
4)	Standard Deduction	$ 18,350.00
5)	Itemised Deduction	$                 -
6)
	Taxable Income	$ 44,250.00
	Note: Higher of Standard Deduction or Itemised deduction is claimed. Camille is eligible for higher standard deduction as head of household
b)
	Description	Amount
1)	Gross Income	$ 67,000.00
2)	For AGI deduction	$    4,400.00
3)	Ajusted Gross Income [Gross Income - AGI Deduction]	$ 62,600.00
4)	Standard Deduction	$ 18,350.00
5)	Itemised Deduction	$                 -
6)
	Taxable Income	$ 44,250.00
	Note: Higher of Standard Deduction or Itemised deduction is claimed. Camille is eligible for higher standard deduction as head of household
c)
	Description	Amount
1)	Gross Income	$ 67,000.00
2)	For AGI deduction	$    4,400.00
3)	Ajusted Gross Income [Gross Income - AGI Deduction]	$ 62,600.00
4)	Standard Deduction	$                 -
5)	Itemised Deduction	$ 15,000.00
6)
	Taxable Income	$ 47,600.00
	Note: Higher of Standard Deduction or Itemised deduction is claimed. Camille is not eligible for higher standard deduction as head of household as her daughter's age is exceeding 24 years and therefore camille is eligible only for the standard deduction of $12200