Mrs. Jackson, age 66, separated from her husband on October 17, 2012. She started receiving support payments from Mr. Jackson of $2,500 per month in November 2012. All of the support payments made commencing in November 2012 is considered to be pursuant to the divorce settlement. Of the $2,500 monthly payment, $1,000 is for the support of their daughter, Rachel. (In 2012, Mr. Jackson earned a salary of $100,000 per year and also earned other investment income.) Mrs. Jackson has income of $26,200.
Their eldest daughter Rachel is 40 and infirm and lives with Mrs. Jackson since she is severely mentally handicapped. She has been certified as impaired by a medical doctor. A part-time attendant helps care for Rachel at a cost of $12,000 per year. Rachel has no income.
REQUIRED
Discuss the tax credits related to her daughter Rachel that are available to Mrs. Jackson.