Olivia is a single mother and has one child who lives with her and for whom she provides more than half of the support. Olivia’s commissions for the year amounted to $66,000. Under a divorce agreement entered into in 2017, her former spouse, Charles, is required to make periodic alimony payments of $1,200 per month to Olivia. According to the divorce agreement, when Charles and Olivia’s child reaches age 18, marries, or dies (whichever occurs first), the payments will be reduced to $700 per month. Olivia has custody of the child. For the year 2022, Charles made a total payment of $12,000 to Olivia. The following is the list of expenses she incurred in 2022:

• Medical expenses $3,600
• State and local income taxes $3,700
• State and local real estate taxes $4,300
• State and local personal property taxes $2,100
• Interest on home mortgage $11,000

What is Olivia’s taxable income?

Instructions: Round your answer to the nearest dollar, and do not include cents, commas or dollar sign. For example: if the answer is 10000 simply write 10000 (and NOT $10,000, $10,000.00 or 10000.00)

Answer rating: 100% (QA)

To determine Olivias taxable income we need to calculate her adjusted gross income AGI first Olivias ... View the full answer