Question

Reba Dixon is a fifth-grade school teacher who earned a salary of $ 38,000 in 2019. She is 45 years old and has been divorced for four years. She recelves $ 1,200 of allmony payments each month from her former husband (divorced In 2016). Reba also rents out a small apartment bullding. This year Reba recelved $ 50,000 of rental payments from tenants and she Incurred $ 19,500 of expenses assoclated with the rental.

Reba and her daughter Heather (20 years old at the end of the year) moved to Georgla in January of thls year. Reba provides more than one-half of Heather's support. They had been Ilving in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgla to be closer to her famlly. Luckly, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba pald a moving company $ 2,010 to move thelr personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgla.

Reba rented a home In Georgla. Heather decided to contlnue llving at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby universty. She was awarded a $ 3,000, parttal tultion scholarship this year, and Reba helped out by paylng the remalning $ 500 tultion cost If possible, Reba thought it would be best to clalm 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 thls year that she thought might quallfy If she was able to tem|ze. Reba pald $ 5,800 In state Income taxes and $ 12,500 in chartable contr butions during the year. She also pald the following medical-related expenses for herself and Heather.

Insurance premiums	$7,952
Medical care expenses	$1,100
Prescription medicine	$350
Nonprescription medicine	$100
New contact lenses for Heather	$200

Shortly after the move, Reba got distracted while driving and she ran Into a street slgn. The accldent caused $ 900 in damage to the car and gave her whiplash. Because the repalrs were less than her insurance deductible, she pald the entre cost of the repalrs. Reba wasn't able to work for two months after the accident. Fortunately, she recelved $ 2,000 from her disablity insurance. Her employer, the Central Georgla School District, pald 60 percent of the premlums on the policy as a nontaxable fringe benefit and Reba pald the remalning 40 percent portion.

A few years ago, Reba acqured several Investments with her portion of the divorce settlement. Thls year she reported the following income from her Investments: $ 2,200 of interest income from corporate bonds and $ 1,500, interest income from City of Denver municipal bonds. Overall, Reba's stock portfollo appreclated by $ 12,000 but she did not sell any of her stocks.

Heather reported $ 6,200 of interest income from corporate bonds she recelved as grtts 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 estlmated tax payments during the year. Reba did not make any estlmated payments. Reba had quallfying Insurance for purposes of the Affordable Care Act (ACA),

Answer 1