Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille’s home for the entire year, and Camille paid for all the costs of maintaining the home. She received a salary of $105,000 and contributed $6,000 of it to a qualified retirement account (a for AGI deduction). She also received $10,000 of alimony from her former husband. Finally, Camille paid $15,000 of expenditures that qualified as itemized deductions.
a. What is Camille’s taxable income?
b. What would Camille’s taxable income be if she incurred $24,000 of itemized deductions instead of $15,000?
c. Assume the original facts but now suppose Camille’s daughter, Kaly, is 25 years old and a full-time student. Kaly’s gross income for the year was $5,000. Kaly provided $3,000 of her own support, and Camille provided $5,000 of support. What is Camille’s taxable income?