Reference no: EM132814991

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 (not a federal disaster area loss)

Problem 1: 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.