Ellen, Age 39 and Single, Furnishes More Than 50% of the Support

question 71

Essay

Ellen, age 39 and single, furnishes more than 50% of the support of her parents, who do not live with her; their only source of income are Social Security benefits. Ellen practices as a self-employed interior decorator and has gross income in 2017 of $120,000. Her deductions are as follows: $30,000 business and $8,100 itemized.
a.Can Ellen qualify for head of household filing status? Explain.
b.What is Ellen's taxable income for 2017?

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Definitions:

Coercive

Pertaining to employing intimidation or physical power to coerce someone into doing something or to ensure obedience.

Trusting

The attitude or disposition to believe in the reliability, truth, ability, or strength of someone or something.

Parenting Styles

Different approaches to raising children characterized by various combinations of responsiveness and demandingness.

Responsiveness

The quality of reacting quickly and positively, especially to stimuli or treatment.