General intormation: The standard deduction is generally $12.950 for single taxpayers and 25,900 for joint filers. For some taxpayers, the standard deduction is limited to the greater of a $1150 and b eraned income plus $400. The lowest tax bracket on income up to around $9.500 is 10%
7. Ernie and Betty were married but Ernie died in 2021 when a piano fell on his head, and Betty did not remarry (and no longer attends classical music concerts). Their 10-year old son lives with Betty and qualifies as her dependent. True or False: Betty cannot take advantage of the joint tax rates in 2023 because she is no longer married. 8. Gary receives $135,000 of group term life insurance as an employee benefit during all of 2022 . The tax table for it shows that the value of $1,000 of coverage per month at his age is 43 cents. How much, if any, must Gary include in gross income for 2022 due to this benefit? 9. Max is a dependent. He has $5,000 of interest income on investments and $6,600 of income from a job. He uses the standard deduction. Show how you determine his taxable income. (I am not asking for his tax liability here - just taxable income.) 10. At age 49, when her life expectancy is 34 years, Tina buys an annuity for $70,000 that will pay her $4,000 a year for life starting at age 59 , when her life expectancy is 25 years. (a) When she receives $4,000 at age 59 , how much is included in gross income? (b) If she only lives to be 64 (and thus only receives 5 payments of $4,000), what impact, if any, will the annuity have on her final tax return? 7. Ernie and Betty were married but Ernie died in 2021 when a piano fell on his head, and Betty did not remarry (and no longer attends classical music concerts). Their 10-year old son lives with Betty and qualifies as her dependent. True or False: Betty cannot take advantage of the joint tax rates in 2023 because she is no longer married. 8. Gary receives $135,000 of group term life insurance as an employee benefit during all of 2022 . The tax table for it shows that the value of $1,000 of coverage per month at his age is 43 cents. How much, if any, must Gary include in gross income for 2022 due to this benefit? 9. Max is a dependent. He has $5,000 of interest income on investments and $6,600 of income from a job. He uses the standard deduction. Show how you determine his taxable income. (I am not asking for his tax liability here - just taxable income.) 10. At age 49, when her life expectancy is 34 years, Tina buys an annuity for $70,000 that will pay her $4,000 a year for life starting at age 59 , when her life expectancy is 25 years. (a) When she receives $4,000 at age 59 , how much is included in gross income? (b) If she only lives to be 64 (and thus only receives 5 payments of $4,000), what impact, if any, will the annuity have on her final tax return
