Reba divorced her husband several years back. In the current year (2020), she received $87,000 in salary, $25,000 in child support from her ex-husband, and $4,500 in interest income. Her three children, Cheyenne, Jake, and Kyra, lived with her this year but only Jake and Kyra qualify as her dependents and count as qualifying persons for determining filing status. In addition, she has $6,000 in total itemized deductions available for the year. Assume she is not subject to AMT, is not self-employed, does not qualify for any additional tax credits, and has not made any prepayments of tax for the year.What filing status should Reba use for her 2020 tax return? Regardless of your answer in a., assume that Reba used Single as her filing status in 2020. Use the information above, the appropriate Federal Tax Schedule and other values from Appendix D, and the individual tax formula to calculate Reba’s 2020 tax due at the end of the year. Regardless of your answer in a., assume that Reba used Single as her filing status and had $10,000 of itemized deductions available instead of $6,000. Would this change Reba’s taxes due at the end of the year? What is the tax due in this updated scenario? Regardless of your answer in a., assume that Reba used Single as her filing status and had $20,000 of itemized deductions available instead of $6,000. Would this change Reba’s taxes due at the end of the year? What is the tax due in this updated scenario?

1) R is a divorcee as on 31st December 2020 So, she should file recordings as a single for 2020 tax…

Answered: What filing status should Reba use for…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 24CE

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Reba divorced her husband several years back. In the current year (2020), she received $87,000 in salary, $25,000 in child support from her ex-husband, and $4,500 in interest income. Her three children, Cheyenne, Jake, and Kyra, lived with her this year but only Jake and Kyra qualify as her dependents and count as qualifying persons for determining filing status. In addition, she has $6,000 in total itemized deductions available for the year. Assume she is not subject to AMT, is not self-employed, does not qualify for any additional tax credits, and has not made any prepayments of tax for the year.

What filing status should Reba use for her 2020 tax return?
Regardless of your answer in a., assume that Reba used Single as her filing status in 2020. Use the information above, the appropriate Federal Tax Schedule and other values from Appendix D, and the individual tax formula to calculate Reba’s 2020 tax due at the end of the year.

Regardless of your answer in a., assume that Reba used Single as her filing status and had $10,000 of itemized deductions available instead of $6,000. Would this change Reba’s taxes due at the end of the year? What is the tax due in this updated scenario?
Regardless of your answer in a., assume that Reba used Single as her filing status and had $20,000 of itemized deductions available instead of $6,000. Would this change Reba’s taxes due at the end of the year? What is the tax due in this updated scenario?

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