Auggie and Judy Reynolds are married and file a joint return. They have no children. Auggie is 67 and Judy is 61. They contribute over half of the support for Judy's mother, Cora (age 85). Cora earned $675 in interest in 2021 and received $4,850 in social security benefits as her only income. Cora lives in an apartment above the Reynolds' garage and does not pay any of her own expenses.

Auggie earned a salary of $75,650 in 2021 from his job at Korma Corp. Judy worked part-time and earned $28,720.They also received the following:

Life insurance proceeds $90,000

Inheritance of $64,340

Interest on State of Virginia bonds $340 used to finance state budgets

Dividends on stock of a Swiss corporation $725

Interest on certificates of deposit $74

If the Reynolds have itemized deductions of $25,610 what is their taxable income for 2021.

2. Mr. and Mrs. Morrison (filing jointly) have adjusted gross income of $342,450 in 2021. Of that amount they have 16,200 (included in the AGI already) of interest on bonds with the only expenses being the investment interest described below. 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 2021 and earned $6,000.A scholarship pays for his tuition of $30,000 but the Morrisons 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 Morrisons sent her $4,000 for help with expenses and estimate that she made $6,500 more that she used for her support.

The Morrisons paid $23,250 in interest on their main home and 11,250 in interest on a second mortgage on their main home which they used to purchase a luxury cruise in 2021 (loan amount is not over 750,000). They paid 8,520 in property taxes and 16,108 in state income taxes. Their charitable cash contributions were $5,698 and the interest paid on their brokerage account (investments) was $3,298.

The Morrisons had $52,500 withheld for federal taxes from their paychecks during 2021.

What is the Morrisons final amount that should be paid or refunded with their return for 2021?

3. Bess Norman is single and has the following sources of income in 2021:

Social security benefits $13,550

Taxable Interest income $6,930

Dividend income $7,480

Tax-exempt interest income $11,204

Ms. Norman is 72 years of age and is not blind and has 12,950 in itemized deductions. What is her taxable income for 2021?

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 2021 at his part-time job. Tiffany is 9 and Donna is 11. All three live at home with Erica who provides more than half of their support.

2. Erica had wages in 2021 (box 1 of W-2) of $65,500 and $2,600 was withheld from her check for federal taxes. She received 1099-Int from First Federal Savings Bank for $32, Olympic Savings for $78 and State of Pennsylvania general bonds $200.
4. Erica contributed 2,200 to her HSA for 2021.
6. Some payments that Erica thinks might be deductible are: $3,140 withheld from check to pay state income taxes, $695 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 1, $7,850 for interest on first mortgage to acquire the home and $2,634 interest paid on 2^nd mortgage to fix up the house, real estate taxes $4,820, private mortgage insurance $620, losing lottery tickets $520(no winners), $300 to get her taxes for last year prepared, gifts to her church $3520, 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 2021 taxes if she already received the full amount of any stimulus payment and half of the child tax credit that was allowed during 2021?