Business
Business, 06.03.2021 05:20, moneykey

4. Eric’s is a single parent with three children who lives in Pennsylvania. Randall is her 19 year old son is a full-time student at Heartland College and earned $4,900 in 2020 at his part-time job. Tiffany is 9 and Donna is 11. All three live at home with Erica who provides more than half of their support. a. Erica had wages in 2020 (box 1 of W-2) of $65,500 and $2,600 was withheld from her check for federal taxes. She received 1099-Int from First Federal Savings Bank for $35, Olympic Savings for $75 and State of Pennsylvania general bonds $300.
b. Erica paid $4,400 toward tuition at Heartland College for Randall during 2020 (which does not qualify for any education credits). Erica contributed 2,200 to her HSA for 2020.
c. Some payments that Erica thinks might be deductible are: $3,140 withheld from check to pay state income taxes, $695 sales tax paid on purchase of car, copayments on various visits to doctors and dentists $920, $2,750 for health insurance withheld from her check that reduced box 1, $7,850 for interest on first mortgage to acquire the home and $1,634 interest paid on 2nd mortgage to fix up the house, real estate taxes $4,420, private mortgage insurance $420, losing lottery tickets $520(no winners), $300 to get her taxes for last year prepared, gifts to her church $2520, two loads of clothes to goodwill $150, mileage to raise money for the AHA Heart Walk 200 miles, gave $200 to her sister to buy food.
How much would Erica receive as a refund from her 2020 taxes?

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4. Eric’s is a single parent with three children who lives in Pennsylvania. Randall is her 19 year o...

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