Chapter 3 1. Susie is a senior in high school and is a dependent of her parents. She earns $120 of interest income from an investment account her grandparents funded for her and $1500 of wages from a part-time job. What is Susie's: AGI Standard Deduction Taxable Income How would the answers change if Susie is legally blind? 2. Jim and Carla are married. He earns $120,000 in wages and has $14,000 of itemized deductions. She earns $120,000 in wages and has $7,000 of itemized deductions. What options do Jim and Carla have for filing their tax return? How would the answers change if Jim and Carla got divorced on December 1st? What if they had 2 minor children? How would the answers change if Jim died on December 1st? 3. Which of the following are taxable? Cash prize in state lottery Gift from uncle Social Security Municipal bond interest Bottle of wine won at raffle Credit card debt waived Loan proceeds from bank Life insurance proceeds Alimony (divorced in 2018) Sell engagement ring Increase in value of home Scholarships