Required Information[The following information applies to the questions displayed below.]Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2022. She is 45 years old and has beendivorced for four years. She receives $1,200 of alimony payments each month from her former husband (divorced in2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments from tenantsand she incurred $19.500 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. Rebaprovides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever sinceher divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teachingposition opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,150 to move theirpersonal belongings, and she and Heather spent two days driving the 1,500 miles to Georgia.Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attendingschool full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3.210 partialtuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible. Reba thought itwould 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 kepttrack of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $6,415 in stateincome taxes and $13,410 in charitable contributions during the year. She also paid the following medical-relatedexpenses for herself and Heather:Insurance premiumsMedical care expensesPrescription medicineNonprescription medicineNew contact lenses for Heather$ 8,510$ 1,100$ 420$100$ 200Shortly after the move, Reba got distracted while driving and ran into a street sign. The accident caused $970 in damageto the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost ofthe repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from herdisability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as anontaxable fringe benefit and Reba paid the remaining 40 percent portion.A few years ago. Reba acquired several investments with her portion of the divorce settlement. This year she reported thefollowing income from her investments: $2,200 of interest income from corporate bonds and $1,640 interest income fromCity of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $12,860, but she did not sell any of herstocks.Heather reported $6,300 of interest income from corporate bonds she received as gifts from her father over the lastseveral years. This was Heather's only source of income for the year.Reba had $10,720 of federal income taxes withheld by her employer. Heather made $1,070 of estimated tax paymentsduring the year. Reba did not make any estimated payments.a-1. Determine Reba's federal income taxes due or taxes payable for the current year. Use Tax Rate Schedule for reference.Note: Do not round intermediate values. Round your final answers to the nearest whole dollar amount. Leave no answer blank.Enter zero If applicable.DescriptionAmountGross Income:Salary$38,000Alimony received14,400Rental receipts$50,000Disability insurance payments$1,200Interest income from corporate bondsS2,200Interest income from municipal bonds$이(1) Gross income$105,800Deductions for AGI:Expenses for rental property(2) Total for AGI deductions(3) AGIFrom AGI deductions:Medical expenses$19,500$19,500$88,300State income taxesCharitable contributions(4) Total itemized deductions$3,758$6,415$13,410$23,583(5) Standard deduction(6) Greater of itemized deductions or standard deduction$23,583(7) Taxable income$62,717(8) Tax on taxable income(9) Credits(10) Tax prepayments(685)$10,720Tax refund

Standard deduction -The percentage of your income that is not taxable that you can use to reduce…

Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2022. She is 45 years old and divorced for four years. She receives $1,200 of alimony payments each month from her former husband (di 2016). Reba also rents out a small apartment building. This year Reba received $50,000 of rental payments and she incurred $19.500 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 ye provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, b her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last Decem position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,15 personal belongings, and she and Heather spent two days driving the 1,500 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3 tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible. Re would be best to claim the education credit for these expenses.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q