Reference no: EM132839401

Question - Ellen files as a head of household and is 57 years old during 2020. She provides all of the support for her elderly father who lives in a memory care facility and her father qualifies as her dependent in 2020. Ellen has the following information for 2020:

Salary income $199,500

Interest income 2,000

Short-term capital gain 3,500

Medical expenses paid for Ellen and her father before the floor 18,175

Mortgage interest paid on residence acquired in 2019 with acquisition indebtedness of $680,000 6,500

State income taxes paid 8,800

Property tax paid on residence 6,000

Interest paid on home equity loan taken out in 2020 to buy a new car 3,500

Cash contribution to church 1,000

Unreimbursed employee expenses 1,560

Personal tax preparation expense 1,800

Casualty loss after $100 floor due to uninsured theft of car 4,800

Required - Compute Ellen's 2020 taxable income and the amount of tax or refund that is due after all allowable credits and withholding/prepayments totaling $33,928 that Ellen made in 2020. Ignore any net investment income tax.