1. Walters, an individual, received the following in 2017:
W-2 income .......................................................................... $10,000
Federal tax refund for 2016 .......................................................... 1,250
Scholarship stipend, in return for teaching assistant duties performed ....... 25,000
Cash inheritance from deceased great-uncle ......................................... 5,000
Considering only the above, what is Walters' 2017 gross income?
a. $35,000
b. $36,250
c. $15,000
d. $16,250
2. Smith, an individual, is required to pay Goode yearly alimony of $6,000 and yearly child support of $18,000. Smith paid Goode $20,000 in 2017. Smith's 2017 W-2 income was $50,000. Considering only the foregoing facts, what should Smith's adjusted gross income be for 2017?
a. $30,000
b. $45,000
c. $48,000
d. $50,000
3. Pierce, a married individual, received the following in 2017:
Workers' compensation award ......................................... $25,000
W-2 income ............................................................... 20,000
Unemployment compensation ............................................ 4,800
Damages awarded for emotional distress
experienced as a result of workplace bodily injury .................. 10,000
Considering only the above, what is Pierce's 2017 gross income?
a. $49,800
b. $34,800
c. $30,000
d. $24,800
4. Kellye, a teacher, volunteers for eight hours per week at a school for high-risk children, a qualified charitable organization. Kellye's normal rate for teaching is $30 per hour. Kellye's out-of-pocket costs in 2017 were $250 for supplies, and she spent $20 each week in transportation getting to and from the school. Kellye made no cash contributions to charity in 2017. If Kellye volunteered every week in 2017, what is her charitable contribution deduction?
a. $0
b. $250
c. $1,290
d. $13,770
5. Aaron has $30,000 of adjusted gross income in 2017. His expenses are as follows:
Non-prescription medicine .......................................... $ 100
Prescription medicine .................................................. 500
Doctor visits ............................................................. 500
Weekly meal preparation for a diet plan .......................... 2,000
Removal of a benign facial mole ...................................... 400
Contact lenses ........................................................... 500
Eyeglasses ................................................................ 200
Dental services ............................................................ 300
What is Aaron's itemized deduction for medical expenses?
a. $0
b. $1,500
c. $2,000
d. $4,500