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…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

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?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions