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Required information (The following information applies to the questions displayed below.) Reba Dixon is a fifth-grade school teacher who earned a salary of $38,200 in 2019. She is 45 years old and has been divorced for four years. She receives $1,265 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,200 of rental payments from tenants and she incurred $19,578 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,140 to move their personal belongings, and she and Heather spent two days driving the 1,452 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,130 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,930 in state income taxes and $12,630 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Insurance premiums Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for Heather $8,082 $1,230 $ 480 $ 230 $ 330 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $1,030 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,130 from her disability insurance. Her employer, the Central Georgia School District, paid 60% of the premiums on the Amount 38,200 15,180 50,200 Description Gross Income: Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds (1) Gross income Deductions for AGI: Expenses for rental property (2) Total for AGI deductions AGI From AGI deductions: Medical expenses State income taxes Charitable contributions (4) Total itemized deductions (5) Standard deduction (6) (7) Taxable income (8) Tax on taxable income (9) Credits (10) Tax prepayments (3) Required information (The following information applies to the questions displayed below.) Reba Dixon is a fifth-grade school teacher who earned a salary of $38,200 in 2019. She is 45 years old and has been divorced for four years. She receives $1,265 of alimony payments each month from her former husband (divorced in 2016). Reba also rents out a small apartment building. This year Reba received $50,200 of rental payments from tenants and she incurred $19,578 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather's support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,140 to move their personal belongings, and she and Heather spent two days driving the 1,452 miles to Georgia. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January and throughout the rest of the year at a nearby university. She was awarded a $3,130 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn't sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $5,930 in state income taxes and $12,630 in charitable contributions during the year. She also paid the following medical-related expenses for herself and Heather: Insurance premiums Medical care expenses Prescription medicine Nonprescription medicine New contact lenses for Heather $8,082 $1,230 $ 480 $ 230 $ 330 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $1,030 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn't able to work for two months after the accident. Fortunately, she received $2,130 from her disability insurance. Her employer, the Central Georgia School District, paid 60% of the premiums on the Amount 38,200 15,180 50,200 Description Gross Income: Salary Alimony received Rental receipts Disability insurance payments Interest income from corporate bonds Interest income from municipal bonds (1) Gross income Deductions for AGI: Expenses for rental property (2) Total for AGI deductions AGI From AGI deductions: Medical expenses State income taxes Charitable contributions (4) Total itemized deductions (5) Standard deduction (6) (7) Taxable income (8) Tax on taxable income (9) Credits (10) Tax prepayments (3)

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