Fred, age 67, and Wilma, age 58, are married. They elect to file Married Filing Jointly. Fred is retired. He received Social Security benefits and a pension. - Fred and Wilma have one son, Stephen, age 18 Stephen is a full-time college student in his second year of study. He is pursuing a degree in Music and does not have a felony drug conviction. He received a Form 1098-T for 2021. Box 2 was not filled in and Box 7 was not checked on his Form 1098-T for the previous tax year.. Stephen spent the summer at home with his parents but lived in an apartment near campus during the school year. Stephen received a scholarship and the terms require that it be used to pay tuition. 

Fred and Wilma paid the cost of Stephen's tuition and course-related books in 2021 not covered by the scholarship. They paid 590 for a parking sticker, $4,500 for a meal plan, $500 for textbooks purchased at the college bookstore, and $100 for access to an online textbook. . Fred and Wilma paid more than half the cost of maintaining a home and support for Stephen.

1. Fred and Wilma do not have enough deductions to itemize on their federal tax return. The Joneses made timely estimated tax payments of $150 each quarter for the tax year 2021. The Joneses received a $4,200 Economic Impact Payment (EIP3) in 2021. - Fred, Wilma, and Stephen are U.S. citizens and have valid Social Security numbers. They all lived in the United States for the entire year. 
2. 
   
3. What is the amount of Fred and Wilma's standard deduction? 
4. 
   
5. What is Fred and Wilma's total qualified education expenses used to calculate the American Opportunity Credit? 
6. 
   
7. Fred and Wilma Jones can claim the Credit for Other Dependents. a. True b. False 
8. 
   
9. What is the total amount of federal income tax withholding shown on the Fred Jones' Form(s) W-2 and 1099? a. $2,700 b. $5,200 c. $6,100 d. $6,622 
10. 
    
11. The taxable amount of Fred's Social Security is $7,650.00 
12. a. True 
13. b. False 
14. 
    
15. Which of the following statements are true? 
16. 
    
17. a. Qualified dividends are part of the total ordinary dividends. 
18. 
    
19. b. Qualified dividends qualify for lower, long-term capital gains tax rates. 
20. 
    
21. c. Qualified dividends are reported on Form 1099-DIV. 
22. 
    
23. d. All of the above.