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:

Pathological Sign

An indication or evidence of a disease, disorder, or significant psychological problem.

Aloneness

A state of being alone or isolated from others, which can vary in its emotional impact on an individual, from being a positive, introspective experience to a source of loneliness and discomfort.

Defining Characteristic

A feature or quality that distinctly identifies and distinguishes an individual, concept, or phenomenon.

Finiteness

The state or quality of having limitations or bounds; recognizing the limits of one's life, resources, or abilities.