1. Daniel Simmons arrived at the following tax information:

Gross salary, $62,250 Interest earnings, $75

Dividend income, $140 One personal exemption, $4,050

Itemized deductions, $7,000 Adjustments to income, $850

What amount would Daniel report as taxable income?

2. If Samantha Jones had the following itemized deductions, should she use Schedule A or the standard deduction? The standard deduction for her tax situation is $6,350.

Donations to church and other charities, $3,050

Medical and dental expenses exceeding 10 percent of adjusted gross income, $450

State income tax, $920

Job-related expenses exceeding 2 percent of adjusted gross income, $1,450

3. If $4,323 was withheld during the year and taxes owed were $4,122, would the person owe an additional amount or receive a refund? What is the amount?

4. Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on the Price Is Right (valued at $15,500) and won $500 on a scratch-off lottery ticket (the first time she ever played). She also signed up for a credit card to start the trip and was given a sign-up bonus of $100. How much will she have to include in her federal taxable income?

5. Wendy Brooks prepares her own income tax return each year. A tax preparer would charge her $75 for this service. Over a period of 10 years, how much does Wendy gain from preparing her own tax return? Assume she can earn 3 percent on her savings.