Question - Janice is a 48 year old widow whose husband died last year. During 2010, her 16 year old dependent son lived with her for the entire tax year. Janice's 2010 income consists of interest income of $325,000 from investments. She lives in a state that does not have any state income tax. During the year she paid home mortgage interest expense of $24,000 and property taxes of $6,000. She also contributed $10,000 to various charities in her community.
a. What filing status applies to Janice?
b. Compute Janice's 2010 taxable income and gross tax.
c. What is Janice's 2010 filing status if her husband has been dead for three years?
d. Assume that Janice's son is age 26. He is married and does not qualify as a dependent the son and his wife do not live with Janice. What is her filing status?
e. Compute Janice's taxable income and tax considering the information in part d.