Reference no: EM133347681

Case: Ms. Mindy Valentine is employed by a large publicly traded corporation. and her 2022 salary is $126.700. In addition to her annual salary. she received a performance bonus of $25,300, one-half of which was paid in 2022, with the remaining one-half not due until July 1. 2023. In addition to her salary, she earns commissions of $32,700 during 2022. She has an employment contract with the employer that requires her to pay for her own travel and other expenses are subject to limited reimbursement.

Valentine's Family Information
Ms. Valentine is divorced and has custody of her two children. They are aged 12 and 17. The 12-year-old son has 2022 net income of $2.420.
The 17-year-old daughter is in full time attendance at a university during eight months of the year. Ms. Valentine pays her annual tuition of $6.500. The daughter has net income of 54.600 and has agreed to transfer the maximum tuition credits to her mother. Also living with Ms. Valentine is her 68-year-old father whose net income for 2022 is $7,700. He has supplemented his income for years with his casino winnings. which totalled $10.500 in 2022. While he does not qualify for the disability tax credit, he has a physical infirmity that makes him dependent on Mindy.

Requirement:

A. Determine Ms. Valentine's minimum 2022 net income.

B. Determine Ms. Valentine's minimum 2022 taxable income.

C. Based on your answer in Requirement B. determine Ms. Valentine's federal income tax payable or refund for 2022. Indicate any carry forwards available to her and her dependents. Ignore any amounts that might have been withheld by her employer or paid in instalments.