1. Carla, a MFJ taxpayer, bought an annuity for $10,000. She expects to earn $2,000 a year until she dies. Her expected life is 10 years. The taxable income reported as Gross Income is what in the current year?

2. Ms. Walter, age 70, is thinking about going back to work part-time. She knows that the wages may affect the taxability of her Social Security benefits. What is the maximum percentage of Social Security benefits that could become taxable?

3. Child support is ________. Alimony is _________ for divorces finalized before 2019.

4. Your mother purchased a $200,000 life insurance policy many years ago. Over the life of the plan she pays $50,000 in premiums. She dies in the current year and you are approached by the company to take either $25,000 for 10 years or a cash value of $170,000. How are your taxes affected in the current year if you choose the annual plan?