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