Question - Peggy (age 67 & single &blind) lives Fresno and provides 100% of the support for the following:
Her daughter Mia (age 45) who lives with her
Her mother Belinda, (age93 & blind) who lives in Mexico
Her father John, (age 95) a US resident who lives in Puerto Rica
During 2017, Peggy had the following financial activity:
Salary income from Adobe of $226,000
Interest income from Morgan Stanley 25,000
Interest income from US Treasury bonds 25,000
Interest income from California Muni Bonds 20,000
Interest income from New York Muni Bonds 15,000
Paid California income taxes (2,100)
Received gambling winnings 28,000
Incurred gambling lossses (37,000)
Paid unreimbursed medical expense due to blindness (9,800)
Her employer gives her $20 to buy dinner each night she works late. Peggy worked late 23 nights.
Peggy used the company printer to print CVS for her daughter 100
Peggy took night classes all year at UCB to obtain her MAC 15,000
Required -
1. What is Peggy's adjusted gross income for the year?
2. What is Peggy's taxable income for the year?
3. What is Peggy's net tax liability for the year? (ignore AMT).
4. Please explaining who and why Peggy can claim as dependents.