Adam has filed as head of household. She divorced and received $4000 /year in alimony. Adam claims the children as her dependents, but the expenses are divided 50/50 with her ex-husband. Adam's daughter Maria graduated and is a full-time employee. His son dropped out of school and did not return to school in the spring. Adam receives Social Security benefits of $500/month and fully taxable distributions from her retirement. Plan of 2,000/month to cover living expenses totaling $ 3,000 per month. Adam has been filing as head of the household. Itemized deductions will be: 1- NY state income taxes: $2,500 2- Real estate taxes on personal residence: $6000 3- Home mortgage interest expense of $1000. The mortgage will be paid off in 2023. Adam pledged $11000 in cash to her church building capital fund to be paid equally over five years. Beginning in 2023. Adam recently received a cash inheritance of $ 100,000. Adam purchased their house a long time ago for as much as $ 100,000 

QUESTIONS: . Can Adam claim his children as dependents? . Can Adam's social security affect his income? . How much did he deduct as adjusted gross income in 2023? What is the tax impact if Adam sells his house? 

Answer rating: 100% (QA)

Lets address each question one by one 1 Can Adam claim his children as dependents Based on the information provided Adam claims the children as depend... View the full answer