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Amanda Johnson, age 40, is single and has a minor child, Jason who is 15. Amanda has been divorced from her husband, John, for four years. Amanda works for NBC as an advertising executive and earned a salary of $100,000 for 2020 with $9,000 in federal income tax withholding and $3,000 in state income tax withholding. She is covered by an employer-sponsored retirement plan.

Amanda has legal custody of Jason and the divorce agreement was finalized in June 2016 which required Amanda to pay John annual alimony payments of $15,000 for the next 12 years or until his death. Amanda provided all of Jasons support.

Amandas mother, Anne, died in 2020. Amanda inherited her mothers home worth $500,000 and she was the sole beneficiary of Annes life insurance policy in the amount of $200,000. Both items were received by her during 2020.

Amanda sold 1,000 shares of Cant Lose, Inc. stock on December 1, 2020, for $8,000. She originally purchased these shares three years ago for $13,500.

Amandas uncle, Jimmy, give her stock in IBM having a value of $4,000 at the time of the gift (which he originally purchased for $3,000) in 2020. Amanda sold the shares for $4,000 in 2020.

Amanda received the following items:

Interest Income of $2,000 from BofA

Gift Card Prize from Vons Groceries of $500

Qualified dividends from IBM of $1,500

Interest Income from Pomona City Bonds of $4,000

Share of partnership income from CPP Partnership of $5,000 but only received $4,500

* *Assume that the Qualified business income deduction applies but the W-2 wage limitation does not.

Amanda made the following payments during 2020:

Charitable contributions of $2,500 to My Church and $1,500 to university.

$5,000 paid to P. Valley Hospital for a friends medical expenses.

Mortgage interest for her home in the amount of $8,000.

Property taxes on her home of $3,200 and gardening expenses of $800.

Estimated Federal Income Taxes of $3,000 and Estimated State Income taxes of $1,000. Medical expenses for herself of $5,000 and $500 for Jason but was reimbursed by insurance in the amount of $1,500.

IRA Contribution in the amount of $6,000.

Contribution of $250 to various political campaigns.

$800 in sales tax that are supported by receipts.

1-What is Amandas filing status?

2-Calculate Amandas Gain/Loss from her stock transactions.

3-Calculate Amandas Gross Income giving income descriptions and amounts.

4-Calculate Amandas Adjusted Gross Income.

5-Calculate Amandas Itemized Deductions including the Medical Expense calculation.

6-Will Amanda claim her Itemized Deductions or the Standard Deduction?

7-Calculate Amandas Taxable Income starting with Adjusted Gross Income.

8-What items of income are excluded from Gross Income?

9-What expenditures by Amanda are not tax-deductible?