1. Emil and Judy Ryan are married and file a joint return. They have no children. Emil is 68 and Judy is 60. They contribute over half of the support for Judys mother, Cora (age 85). Cora earned $1,970 in 2015 and received $2,900 in social security. Cora lives in an apartment in the Ryans basement and does not pay any of her own expenses.

Emil earned a salary of $72,400 in 2015 from his job at Korma Corp. Judy worked part-time and earned $19,520. They also received the following:

Life insurance proceeds $70,000

Interest on State of Virginia bonds $320

Dividends on stock of a Swiss corporation $920

Interest on savings accounts $93

If the Ryans have itemized deductions of $13,160, what is their taxable income for 2015.

2. Mr. and Mrs. Messimer have adjusted gross income of $338,400 in 2015. Of that amount they have 16,200 of interest on bonds with no investment expenses. They have 4 children. The younger two are 13 and 15 and live at home. The oldest is 21 and is a full-time student at Dartmouth. He also had a summer job during 2015 and earned $6,000. A scholarship pays for his tuition of $30,000 but the Messimers pay all of his other expenses. The second to the oldest graduated from high school and had no interest in college. She is 20 and is singing with a band in a neighboring city. The Messimers sent her $4,000 for help with expenses and estimate that she made $4,500 more that she used for her support. Their itemized deductions are $48,350 before any reduction.

What is the Messimers final tax that should be paid with their return for 2015?

3. Betty Norman is single and has the following sources of income in 2015:

Social security benefits $14,500

Interest income $8,000

Dividend income $7,200

Tax-exempt interest income $12,105

Ms. Norman is 71 years of age and has $6,500 in itemized deductions. What is her taxable income for 2015?

4. Erica is a single parent with three children who lives in Pennsylvania. Randall is her 19 year old son is a full-time student at Heartland College and earned $4,900 in 2015 at his part-time job. Tiffany is 12 and Donna is 14. All three live at home with Erica who provides more than half of their support.

Erica had wages in 2015 (box a of W-2) of $64,500 and $2,600 was withheld from her check for federal taxes. She received 1099-Int from First Federal Savings Bank for $135, Olympic Savings for $175 and State of Maryland bonds $300.

Erica paid $6,000 toward tuition at Heartland College for Randall during 2015. Erica will contribute the maximum deductible amount to her IRA for 2015 and is a participant in her employers pension plan.

Some payments that Erica thinks might be deductible are: $2,100 withheld from check to pay state income taxes, $700 sales tax paid on purchase of car, copayments on various visits to doctors and dentists $920, $2,750 for health insurance withheld from her check that reduced box A, $7,450 for interest on first mortgage and $1,134 interest paid on 2^nd mortgage, real estate taxes $2,640, private mortgage insurance $420, losing lottery tickets $520, $300 to get her taxes for last year prepared, gifts to her church $570, two loads of clothes to goodwill $150, mileage to raise money for the AHA Heart Walk 200 miles, gave $200 to her sister to buy food.

How much would Erica receive as a refund from her 2015 taxes?