a.Single b.married, filing separately c.head of household d.qualifying widower 10.During 2017, Sean has the following gross receipts: $40,000 in salary, $6,000 in alimony, $12,000 in child support, and $15,000 for a bank loan which was used to buy a car. What is Sean’s adjusted gross income? $46,000 as only the salary and alimony are taxable.
11.In 2017, Melissa paid $15,000 of medical expenses of which she was only able to include $7,500 in her itemized deductions because of an AGI floor limitation. In 2018, Melissa received a $10,000 reimbursement from her insurance company for these expenses. How much of the reimbursement must be included in her gross income for 2018? Assume Melissa had $20,000 in total itemized deductions in 2017 and her standard deduction was $6,350. The reimbursement is only taxable to the extent that the original amount reduced her taxable income. The medical expenses only reduced her 2017 taxable income by $7,500. Thus only $7,500 of the reimbursement would be included in gross income. Use the information below to answer questions 12 and 13: Tom Humm is 20 years old and lives in his parent’s basement. He doesn’t do anything except play video games and deliver pizzas. He only made $4,000 delivering pizzas last year while his parents provided him support of $6,000 and his older sister provided him support of $3,000. 12.Can Tom’s parents claim a dependent exemption for him as a qualifying child? He is over 19 and he is not a student. 13.Can Tom’s parents claim a dependent exemption for him as a qualifying relative? His parents do not provide half of his support.
14.Brad Pitt and Angelina Jolie finalized their divorce in summer of 2017. Their children now live full time with Angelina. In addition to paying for his own home, Brad pays all of the costs of his elderly parents’ home. What is Brad’s filing status?