Reference no: EM132859641
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 (not a federal disaster area loss)
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.