10. Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2019, Ed and Jane realized the following items of income and expense:

Item	Amount
Eds Salary	$55,000
Janes Salary	34,400
Interest income on their saving account	600
Municipal bond interest income	400
Lottery winning	6,000
Dividend received from GE stocks	500
Jane received alimony from her ex	1000
Jane received gift from her aunt	3000
Alimony paid to Eds ex-wife	(7,000)
Child support paid to Eds ex-wife	(5,000)
Real property tax	(10,000)
Home mortgage interest expenses	(6,000)
Gambling loss	(4500)

Their employers withheld $1,800 in federal income taxes and $800 state income tax from their paychecks (in the aggregate). Please answer the following questions:

a. What is the couples gross income?

b. What is the couples adjusted gross income (AGI)?

c. What is the couples itemized deduction?

d. What is the couples taxable income?

9. Brittany, who is single, cares for her father Raymond. Brittany pays the bills relating to Raymond's home. She also buys groceries and provides the rest of his support. Raymond has no gross income. Brittany received $45,000 of salary from her employer during the year. Brittany reports $3,000 of itemized deductions. What is Brittany's taxable income?

7. During 2019, Marvin had the following transactions:

Salary	$50,000
Bank loan (proceeds used to buy personal auto)	10,000
Alimony paid	6,000
Child support paid	12,000
Gift from aunt Gain from sale of city of Bloomington bonds 5,000	20,000

Interest from City of Bloomington Bonds 500

Interest received on the U.S. Government bonds 1,500

Interest received on corporate (GE company) bonds 350

Lottery winnings 500

Life insurance proceed after her grandmother died 150,000

Calculate Marvins AGI:

11. Jenna (age 50) files single and reports AGI of $40,000. This year she has incurred the following medical expenses:

Dentist charges	$90
Physician's fees	2,800
Cosmetic surgery	400
Cost of eyeglasses	250
Hospital charges	1,330
Prescription drugs	240
Over-the-counter drugs	75
Medical insurance premiums (not through an exchange)	1,200

Calculate the amount of deductible medical expenses that will be included with Jenna's other itemized deductions.

12. Amy sued Paul who caused the car accident. Amy received the following settlement:

Physical damage to her arms caused by the accident	$5,000
Loss of income while her physical injuries were healing	$3,000
Medical expenses for treatment of injury	$7,000
Punitive Damages	$10,000

What is Amys gross income?

13. In 2019, George and Martha are married and file a joint tax return claiming their two children as dependents. Assuming their AGI is $119,650, George and Marthas child tax credit is:

14. go over the basic concept of education creditsthe American Opportunity credit and Lifetime learning credit

• requirements
• the maximum amount of the credits