Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.] Camille Sikorski was divorced last year. She currently provides a home for her 15-year-old daughter Kaly. Kaly lived in Camille's home for the entire year, and Camille paid for all the costs of maintaining the home. She 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. Finally, Camille paid $15,000 of expenditures that qualified as itemized deductions a. What is Camille's taxable income? Descriptiorn Amount (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions 0 Taxable income

Explanation / Answer

Requirement a)

Note- Gross income = 105,000 salary + 10,000 alimony = $115,000

Standard deduction = $18000 (according 2018)

Personal and dependency exemptions= $4,050 ×2 (one personal exemption and one dependency exemptions )

$4050 is according to the year 2018

Camille may file as head of household because she is unmarried at the end of year and she pay more than half of the cost of maintaining a home that is principal place of abode for qualifying child.

Requirement c)

(1) Gross income $115,000 (2) For AGI deduction $6,000 (3) Adjusted Gross income $109,000 (4) Standard deduction $18,000 (5) Itemized deductions $15,000 (6) Greater of standard deduction or Itemized deductions $18,000 (7) Personal and dependency exemptions $8100 (8) Total deduction $26,100 Taxable income $82,900

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