Reference no: EM132031157

Question: Pat was divorced from her husband in 2002. During the current year she received alimony of $18,000 and child support of $4,000 for her 11-year-old son, who lives with her. Her former husband had asked her to sign an agreement giving him the dependency exemp-tion for the child but she declined to do so. After the divorce she accepted a position as a teacher in the local school district. During the current year she received a salary of $32,000. The school district paid her medical insurance premiums of $6,900 and pro-vided her with group term life insurance coverage of $40,000. The premiums attributable to her coverage equaled $160. During her marriage, Pat's parents loaned her $8,000 to help with the down payment on her home. Her parents told her this year that they under-stand her financial problems and that they were cancelling the balance on the loan, which was $5,000. They did so because they wanted to help their only daughter. Pat received dividends from national motor company of $4,600 and interest on State of California bonds of $2,850. Pat had itemized deductions of $9,100. Compute her taxable income for 2016.