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1: What is Vanessa's filing status?

2: What is Vanessa's AGI?

3: Does Vanessa claim the standard deduction or itemized? What is the amount?

4: Which credits is Vanessa eligible to claim?

Vanessa Franklin

Expenses Provided by Vanessa Provided by Annabelle

Share of food 400 0

Clothing 0 200

Rent & utilities 380 0

Medical & dental 0 900

Recreation & transportation 800 700

Total 1580 1800

Vanessa is married to Harvey. Harvey moved out of the family home in October and once in a while sends Vanessa some money to help pay for the children. Their three children still live with Vanessa and she provides over half of their support. Vanessa is not willing to file a joint tax return with her husband. Harvey's social security number is 111-11-8888. Harvey is not going to itemize his deductions this year. Vanessa did not itemize her deductions last year.

Vanessa's mother also lives with her. Her mother receives a small social security pension ($3,800 for 2012). You will need to determine if her mother can be claimed on her tax return. Vanessa provides you with this additional detail about her mother's monthly expenses:

In addition to her employment, Vanessa sells cosmetics on the side. She schedules makeup workshops in people's homes in the evenings and on weekends. Vanessa doesn't keep any inventory of cosmetics, except for the samples she uses for parties and individual consultations. She only orders directly for what customers purchase. Vanessa lets you know she has written evidence of the following information about her business:

Her total receipts were $3,350

Her expenses were:

Flyers 50

Party supplies 250

Cosmetics license 30

Miles driving to parties and customer homes 500

Gas costs while on business 180

Vanessa uses her personal car to get to the parties and customer homes. She drove a total of 10,500 miles last year. Vanessa started using her car for traveling to and from shows and customers on July 6, 2010

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9800824

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