Required informationComprehensive Problem 8-84 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Algo)Skip to question

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Reba Dixon is a fifth-grade school teacher who earned a salary of $37,240 in 2024. She is 45 years old and receives $1,200 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $53,800 of rental payments from tenants, and she incurred $19,500 of expenses associated with the rental.

Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,390 to move their personal belongings, and she and Heather spent two days driving the 1,740 miles to Georgia.

Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full time in January and throughout the rest of the year at a nearby university. She was awarded a $3,590 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses.

Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $7,010 in state income taxes and $16,070 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather:

Insurance premiums	$ 9,600
Medical care expenses	$ 1,100
Prescription medicine	$ 540
Nonprescription medicine	$ 100
New contact lenses for Heather	$ 200

Shortly after the move, Reba got distracted while driving and ran into a street sign. The accident caused $1,090 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit, and Reba paid the remaining 40 percent portion.

A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $1,000 of interest income from corporate bonds and $1,880 interest income from City of Denver municipal bonds. Overall, Reba's stock portfolio appreciated by $14,490, but she did not sell any of her stocks.

Heather reported $6,900 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather's only source of income for the year.

Reba had $12,080 of federal income taxes withheld by her employer. Heather made $1,190 of estimated tax payments during the year. Reba did not make any estimated payments.

Comprehensive Problem 8-84 Part a-2 (Algo)

Using the information from part a-1, Complete pages 1 and 2, Schedule 1, and Schedule 3 of Form 1040 for Reba.

Reba Dixon's address is 19010 N.W. 135th Street, Lawrenceville, GA 30043.

Social security numbers:

Reba Dixon: 111-11-1111

Heather Dixon: 222-22-2222

Note: Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency during the year. Input all the values as positive numbers. Use 2024 tax rules regardless of year on tax form. Round your intermediate computations and final answers to the nearest whole dollar amount.

Chrome File Edit View History Bookmarks Profiles Tab Window Help 1 zoom + $ 2 Q 8 0 Sat Nov 9 2:19 PM o Mail - Sauder, Nathan Dougla *Dashboard M Question 2 - Ch 8 Application X ChatGPT x ezt.prod.mheducation.com/M M CLMFE (Sauder, Nathan - Sta C go ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBK... Finish update : Ch 8 Application/Critical Thinking Activity (manual grading) i Saved Help Save & Exit Submit You skipped this question in the previous attempt. Check my work 2 inan D(= 1 * 1040 D(: 7 Required information Part 2 of 3 Department of the Treasury-Internal Revenue Service Form 1040 U.S. Individual Income Tax Return 2023 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. 12.5 For the year Jan. 1-Dec. 31, 2023, or other tax year beginning 2023, ending , 20 See separate instructions. points Your first name and middle initial Last name Your social security number Reba Dixon 111-11-1111 If joint return, spouse's first name and middle initial Last name Spouse's social security number eBook Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign Print 19010 N.W. 135th Street Check here if you, or your spouse if City, town, or post office. If you have a foreign address, also complete spaces below. State ZIP code filing jointly, want $3 to go to this fund Lawrenceville Checking a box below will not change Georgia 30043 your tax or refund. References Foreign country name Foreign province/state/county Foreign postal code You Spouse Filing Status Single Head of household (HOH) Married filing jointly (even if only one had income) Check only Married filing separately (MFS) Qualifying surviving spouse (QSS) one box. If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child's name if the qualifying person is a child but not your dependent: Digital At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, Assets exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Yes No Someone can claim: You as a dependent Standard Deduction Your spouse as a dependent Spouse itemizes on a separate return or you were a dual-status alien Age or Blindness You: Were born before January 2, 195 Are blind Spouse Was born before January 2, 1959 Is blind Dependents see instructions): (2) Social security number (3) Relationship to you (4) Check the box if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for other dependents Mc Grav Hill 1,618 NOV 9 "tv 4 47 X zoomChrome File Edit View History Bookmarks Profiles Tab Window Help zoom + $ 7 9 8 0 Sat Nov 9 2:19 PM o Mail - Sauder, Nathan Dougla *Dashboard M Question 2 - Ch 8 Application X ChatGPT x ezt.prod.mheducation.com/M M CLMFE (Sauder, Nathan - Sta C go ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBK... Finish update : Ch 8 Application/Critical Thinking Activity (manual grading) i Saved Help Save & Exit Submit You skipped this question in the previous attempt. Check my work 2 Required information Age or Blindness You: Were born before January 2, 1959 Are blind Spouse: Was born before January 2, 1959 Is blind Part 2 of 3 Dependents (see instructions): (2) Social security number (3) Relationship to you (4) Check the box if qualifies for (see instructions): (1) First name Last name Child tax credit Credit for othe dependents 12.5 If more than four Heather Dixon 222-22-2222 points dependents, see instructions and check here 1000 Income a Total amount from Form(s) W-2, box 1 (see instructions) 37,240 eBook b Household employee wages not reported on Form(s) W-2 Attach Form(s) W-2 here. Also c Tip income not reported on line 1a (see instructions) attach Forms Print W-2G and d Medicaid waiver payments not reported on Form(s) W-2 (see instructions) 1099-R if tax was withheld e Taxable dependent care benefits from Form 2441, line 26 Employer-provided adoption benefits from Form 8839, line 29 References If you did not g Wages from Form 8919, line 6 get a Form W-2, see h Other earned income (see instructions) instructions . Nontaxable combat pay election (see instructions) 1i z Add lines 1a through 1h 1,880 b Taxable interest. 1,000 Attach Sch. B if required. 2a Tax-exempt interest 2a 3a Qualified dividends 3a b Ordinary dividends. la IRA distributions b Taxable amount 5a Pensions and annuities 5a Taxable amount 6a Social security benefits Taxable amount Standard Deduction for- c If you elect to use the lump-sum election method, check here (see instructions) O . Single or Married filing 7 Capital gain or (loss). Attach Schedule D if required. If not required, check here 7 separately, $13,850 8 Other income from Schedule 1, line 10 8 . Married filing jointly or 9 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income 38,240 Qualifying 10 Adjustments to income from Schedule 1, line 26 10 Surviving spouse, Mc Grav 2 Hill 1618 NOV 9 4 C zoom@ Chrome File Edit View History Bookmarks Profiles Tab Window Help & zoom 6, 3