1. The following events occurred during Sidney's tax year: Received $800 in tips from her waitressing job at a local restaurant Ate $1,200 worth of meals for free on-site at her waitressing job, because her manager prefers staff to stay onsite Received $2,000 from her employer as reimbursement for work-related parking fees Received $400 in sick pay from her employer for sick days she took off for a wrist injury Received $2,000 in unemployment benefits when her restaurant shut down for remodeling Won $300 on a scratch-off lottery ticket When the restaurant's delivery driver makes deliveries in her neighborhood, she often gets a ride home with him, a service that would have totaled $300 from Uber. What amount must Sidney include in her gross income from the above events? 2. Lexi opened a 529 qualified tuition program for the benefit of her daughter, Megan. Lexi contributed $4,000 to the fund (a non-deductible contribution). The fund balance had accumulated to $10,000 by the time Megan was ready to enter college. However, Megan received a scholarship that paid for her tuition, fees, books, and supplies. The scholarship did not cover her room and board, which cost $8,000 per academic year. Lexi withdrew the full $10,000 from the 529 plan to pay for Megan's room and board ($8,000), and give her spending money for food, clothes, and entertainment ($2,000). What are the tax consequences to Lexi and to Megan of (1) receiving the scholarship and (2) withdrawing the $10,000? 3. Shelly is a cash basis taxpayer. In 20x5, she filed her 204 South Carolina income tax return and received a $2,200 refund. Shelly took the standard deduction on her 20x4 Federal income tax return but will itemize her deductions in 20x5. Kassie, a cash basis taxpayer, also filed her 20x4 South Carolina income tax return in 20x5 and received a $600 refund. Kassie had $16,000 in itemized deductions on her 20x4 Federal income tax return but will take the standard deduction in 20x5. How does the tax benefit rule apply to Shelly's and Kassie's situations? Explain. 4. Matt, single, lives in Michigan and uses the cash method of accounting. In April of 20x7, he filed his 20x6 Michigan state tax return, and had to pay in an additional $1,000 in 20x6 state income taxes. During 20x7, he had Michigan income tax withheld of $5,000. In April of 20x8, he filed his 20x7 Michigan tax return claiming a refund of $500, which he received in May of 20x8. If he has $20,000 in itemized deductions for 20x7: a) What should Matt take as his state income tax deduction on his 20x7 Federal income tax return (filed in April 20x8)? b) How should Matt treat the $500 refund in 20x8?