Camille Sikorski was divorced in 2018. She currently owns and provides a home for her 15-year-old daughter.

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Camille Sikorski was divorced in 2018. She currently owns and provides a home for her 15-year-old daughter. Kaly lived in Camille’s home for the entire year and Camille paid for all the costs of maintaining the home. Camille 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 (per divorce decree issued in 2018). 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 that 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?

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Related Book For  answer-question

Taxation Of Individuals And Business Entities 2021

ISBN: 9781260247138

12th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

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