Question

Problem 3-25 (c) (LO. 1, 8) The following information applies to Caroline, who is single, for 2019: $44,350 Salary Alimony received (pre-2019 divorce decree) Child support received 9,600 4,800 15,000 Cash inheritance from her mother's estate Jury duty fees 75 Penalty for early withdrawal from savings (630) 50,000 Life insurance proceeds received as a result of the death of her Contributions to Health Savings Account (Caroline has a high deductible health plan) (3,600) Number of potential dependents Age Caroline's mother lived with her for 10 months (until her death). Her mother's income consisted of $12,000 in Social Security benefit Click here to access the standard deduction table to use. Indicate whether the following items are taxable or nontaxable to Caroline. Child support received Not taxable Life insurance proceeds received as a result of the death of her mother Not taxable

personal income tax

need to know the taxable income

Answer 1

44,350 9,600 75 54,025 Source of income: Salary $ Alimony Received Jury duty fees $ Allowable Deductions: Penalty for early withdrawl from saving $ 630 Contribution to Health Savings Account $ 3,600 Personal deduction (No exemption available for 2019) Standard deduction (head of house hold 2019) 18,350 Total Deductions (B) $ Caroline's Taxable income in 2019 (A) - (B) $ 22,580 31,445