Reba Dixon is a fifth-grade school teacher who earned a salary
of $38,300 in 2018. She is 45 years old and has been divorced for
four years. She receives $1,290 of alimony payments each month from
her former husband (divorced in 2016). Reba also rents out a small
apartment building. This year Reba received $50,400 of rental
payments from tenants and she incurred $19,656 of expenses
associated with the rental.
Reba and her daughter Heather (20 years old at the end of the year)
moved to Georgia in January of this year. Reba provides more than
one-half of Heather’s support. They had been living in Colorado for
the past 15 years, but ever since her divorce, Reba has been
wanting to move back to Georgia to be closer to her family.
Luckily, last December, a teaching position opened up and Reba and
Heather decided to make the move. Reba paid a moving company $2,190
to move their personal belongings, and she and Heather spent two
days driving the 1,462 miles to Georgia.
Reba rented a home in Georgia. Heather decided to continue living
at home with her mom, but she started attending school full-time in
January at a nearby university. She was awarded a $3,180 partial
tuition scholarship this year, and Reba helped out by paying the
remaining $500 tuition cost. If possible, Reba thought it would be
best to claim the education credit for these expenses.
Reba wasn't sure if she would have enough items to help her benefit
from itemizing on her tax return. However, she kept track of
several expenses this year that she thought might qualify if she
was able to itemize. Reba paid $5,980 in state income taxes and
$12,680 in charitable contributions during the year. She also paid
the following medical-related expenses for herself and Heather:
Insurance premiums | $ | 5,975 |
Medical care expenses | $ | 1,280 |
Prescription medicine | $ | 530 |
Nonprescription medicine | $ | 280 |
New contact lenses for Heather | $ | 380 |
Shortly after the move, Reba got distracted while driving and
she ran into a street sign. The accident caused $1,080 in damage to
the car and gave her whiplash. Because the repairs were less than
her insurance deductible, she paid the entire cost of the repairs.
Reba wasn’t able to work for two months after the accident.
Fortunately, she received $2,180 from her disability insurance. Her
employer, the Central Georgia School District, paid 60% of the
premiums on the policy as a nontaxable fringe benefit and Reba paid
the remaining 40% portion.
A few years ago, Reba acquired several investments with her portion
of the divorce settlement. This year she reported the following
income from her investments: $2,380 of interest income from
corporate bonds and $1,680 interest income from the City of Denver
municipal bonds. Overall, Reba’s stock portfolio appreciated by
$12,180 but she did not sell any of her stocks.
Heather reported $6,560 of interest income from corporate bonds she
received as gifts from her father over the last several years. This
was Heather’s only source of income for the year.
Reba had $10,000 of federal income taxes withheld by her employer.
Heather made $1,000 of estimated tax payments during the year. Reba
did not make any estimated payments. Reba had qualifying insurance
for purposes of the Affordable Care Act (ACA).
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,300 in 2018. She is 45 year...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2018. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,400 in 2018. She is 45 years old and has been divorced for four years. She receives $1,300 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,200 of rental payments from tenants and she incurred $19,578 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2018. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the...
Required information [The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38,400 in 2018. She is 45 years old and has been divorced for four years. She receives $1,300 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,200 of rental payments from tenants and she incurred $19,578 of expenses associated with the...
Lacy is a single taxpayer. In 2018, her taxable income is $46,800. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a. All of her income is salary from her employer. Tax liability:$____________ b. Her $46,800 of taxable income includes $1,400 of qualified dividends. Tax liability:$____________ c. Her $46,800 of...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,300 in 2018. She is 45 years old and has been divorced for four years. She receives $1,240 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the...
Reba Dixon is a fifth-grade school teacher who earned a salary of $38,300 in 2019. She is 45 years old and has been divorced for four years. She receives $1,230 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,500 of rental payments from tenants and she incurred $19,695 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the...
Answers for B. and C. are wrong Required Information Part 1 of 4 (The following information applies to the questions displayed below.] In 2018, Sheryl is claimed as a dependent on her parents' tax return. Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Leave no answer blank. Enter...
Geronimo files his tax return as a head of household for year 2018. If his taxable income is $225,000, what is his average tax rate? (Use Tax rate schedules) Multiple Choice 23.58% 25.51% 28.23% 35.00% None of the choices are correct. 2018 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 9,525 10% of taxable in $ 9,525 $ 38,700 $952.50 plus 12% of the excess over $9,525 $ 38,700 $...
Comprehensive Problem 8-84 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) [The following information applies to the questions displayed below.] Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2018. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments...