1. In 2020, Amy receives $8,000 (of which $3,000 is earnings) from a qualified tuition program. She uses the funds to pay for tuition and other qualified higher education expenses. What amount is taxable to Amy?

a.$3,000 WAS WRONG

b.$11,000

c.$0

d.$8,000

2. Wendy is a single taxpayer and pays tuition of $7,800 in 2020. Her 2020 AGI is $66,000. What is the amount of Wendys tuition deduction?

a.$2,000

b.$0

c.$7,800

d.$3,733.33

e.$4,000

3. Alicia loses her job part way through 2020. Her employer pays her wages of $15,450 up through her date of termination. After that, she received $1,600 of unemployment compensation from the state until she gets a new job for which she is paid wages of $1,400 through year end. Based on this information, Alicia's gross income for 2020 is:

a.$18,450

b.$16,850

c.$17,050

d.$21,850

e.$15,450

4. For 2020, the maximum percentage of Social Security benefits that could be included in a taxpayer's gross income is:

a.0%

b.85%

c.50% WAS WRONG

d.75%

e.25%

5. Jack borrows $13,000 from Sawyer Savings and Loan and uses the proceeds to acquire a used car. When the loan balance is $12,000, Jack loses his job and is unable to make payments for three months. When Jack gets a new job, the bank agrees to forgive the missed principal payments and reduces his loan to $11,500. Jack remains solvent even when unemployed. How much cancellation of debt income does Jack have?

a.$0.

b.$500.

c.$2,000.

d.$1,500.

6. Kate acquires a principal residence in 2016 for $200,000 secured by a $180,000 mortgage. In 2020, Kate catches the coronavirus and misses work for 3 months. Her employer stops paying her after 10 days. In 2020 when the mortgage balance is $170,000, Kate and the bank revise her terms and lower the loan balance to $150,000. The market value of the home remains above $200,000. How much cancellation of debt income will Kate recognize?

a.$170,000.

b.$150,000.

c.$0.

d.$10,000.

e.$20,000.