Leann is a 52 year old widow whose husband died in 2015


Question: Leann is a 52 year old widow whose husband died in 2015. During 2016, her 17 year old dependent son lived with her for the entire tax year. Leann's 2016 income consists of salary of $92,000 and interest income of $24,600. She lives in a state that does not have a state income tax. During the year she paid home mortgage interest expense of $19,000 and real estate taxes of $5,000. She also contributed $10,000 in cash to various charities in her community. These are her only itemized deductions during 2016.

A. What filing status applies to Leann for 2016?

B. Compute Leann's 2016 taxable income and gross tax

C. What would Leann's 2016 filing status be if her husband has been dead for three years?

D. Assume that Leann's son is age 26. He is married and does not qualify as a dependent. The son and his wife do not live with Leann. What is Leeann's 2016 filing status in this situation?

E. Compute Leann's 2016 taxable income and tax considering the information in part d.

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Accounting Basics: Leann is a 52 year old widow whose husband died in 2015
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