1. Greg is 69. He bough an annuity that provides 4,000 annual payments for the next 10 years. The annuity was purchased for $35,000. For the first year, how much of the payment should Greg include in his gross income?

2. Darla is an unmarried taxpayer. She paid $2,000 of interest on a qualified education loan this year. She reports a modified Adjusted Gross Income of $82,000. What is Darla's deduction for interest expense on an educational loan?

3. Kayla has these cash donations recorded this year: $300 to a family, $600 to the Salvation Army, $900 to a political campaign, and $1,400 to a church

What is Kayla's maximum allowable charitable contribution if her AGI is $60,000?
 

Age at Annuity Starting Date Expected Return Multiple 68 69 70 71 72 17.6 16.8 16.0 15.3 14.6