Question

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 $82,500 and contributed $5,300 of it to a qualified retirement account (a for AGI deduction). She also received $11,500 of alimony from her former husband. Finally, Camille paid $16,400 of expenditures that qualified as itemized deductions.

What is Camille’s taxable income?

What would Camille’s taxable income be if she incurred $11,450 of itemized deductions instead of $16,400?

Assume the original facts but now suppose Camille’s daughter, Kaly, is 25 years old and a full-time student. Kaly’s gross income for the year was $6,400. Kaly provided $3,840 of her own support, and Camille provided $6,400 of support. What is Camille’s taxable income?

    

  

Answer 1

	Camille Sikorski
	Salary of Camille Sikorsi	$ 82,500.00
*	Alimony from Husband	$ 11,500.00
	Gross Income	$ 94,000.00
	Less: Contribution to qualified retirement account	$   5,300.00
	Adjusted Gross Income($94000-$5300)	$ 88,700.00
	Standard deduction in 2018	$ 18,000.00
	Itemized deduction	$ 16,400.00
	Excess of Standard or itemized deduction	$ 18,000.00
	Taxable Income=($88700-$18000)	$ 70,700.00
*	Law states that Alimony included in the gross income of collecting Spouce.
**	Personal & dependency exemption eliminates 2018 to 2025
	Camille’s taxable income be if she incurred $11,450 of itemized deductions instead of $16,400?
	Salary of Camille Sikorsi	$ 82,500.00
*	Alimony from Husband	$ 11,500.00
	Gross Income	$ 94,000.00
	Less: Contribution to qualified retirement account	$   5,300.00
	Adjusted Gross Income($94000-$5300)	$ 88,700.00
	Standard deduction in 2018	$ 18,000.00
	Itemized deduction	$ 11,450.00
	Excess of Standard or itemized deduction	$ 18,000.00
	Taxable Income=($88700-$18000)	$ 70,700.00
	Camille’s taxable income when Camille provided $6,400 of support
	Child support payment are not taxable in the hand of Kelly and not deductible in the Camille's hand.