Income tax study guide, Any help will be greatly apperciated

1. What is the amount of standard deduction for Abigail Abrams in 2016, a single woman (age 70) who has normal vision and fully supports her eight-year-old grandson who lives with her? 2. Max Moore is a widower (his spouse died in 2012) and maintains a separate apartment for his mother. His mother has taxable income in 2016 of $5,200. What is the best filing status for Max for 2016. 3. Don Driller, who is 54 years old, is provided with $400,000 of group-term life insurance by his employer. Don's required contribution to the cost of the policy is $120 per year. If Don was covered by the policy for the entire year in 2016, how much is included in Don's income as a result of this policy? 4. Calculate the total moving expenses that could be deducted for AGI if a taxpayer has the following costs for a move from Pennsylvania to Michigan because of his full-time job transfer: Uhaul truck rental $3,090 (including mileage on the truck), real estate commission on sale of PA home, $15,150, 1,465 miles driven on personal vehicle driven behind the Uhaul, gas for Uhaul $404, hotel in Ohio on the way $138, hotel in Michigan while waiting for new house to be vacated $440, meals while traveling $265. 5. Roger Burrows, age 19, is a full-time student at Marshall College and a candidate for a bachelor's degree. During 2016, he received the following payments: Private scholarship for tuition $9,600 Loan from financial aid office $6,500 Cash support from parents $10,000 Cash dividends on qualified investments $220 Cash prize award in contest $1,800 What is his adjusted gross income? 6. Stan and Anne were divorced in January 2016. The provisions of the divorce decree and Anne's obligations follow: Transfer title in their resort condo to Stan. At the time of the transfer, the condo had a basis to Anne of $75,000, a fair market value of $195,000; it was subject to a mortgage of $58,000 Anne is to make the mortgage payments for 17 years regardless of how long Stan lives. Anne paid $9,130 in 2016 on the mortgage. Anne is to pay Stan $1,600 per month, beginning in Feb, for 10 years or until Stan dies. Of this amount, $520 is designated as child support. Anne made all the payments required in 2016. What would the effect of these payments be on the AGI of Anne and Stan? 7. If a married couple who files jointly has taxable income of $123,435 in 2016 with no capital gains nor qualified dividends nor tax credits, what is their income tax liability for 2016. 8. On February 10, 2016, Rose was in an automobile accident while she was going to work. The doctor advised her to stay home for six months due to her injuries. On February 25, 2016, she files a lawsuit. On August 20, 2016, Rose returned to work. On December 15, 2016, the lawsuit was settled with the following payments: Personal injury damages $42,500 Payment for pain and suffering from injuries (reimbursement for psychologist treatment) $12,000 Punitive damages $250,000 Rose also received $16,000 in payments from a disability policy which was paid for by her employer and pays her based on the number of days she missed and $39,000 was paid for medical bills from her injuries by her insurance company (this insurance is provided by her employer). How much received as a result of her accident would be included in Rose's gross income. 9. Ned Norton purchased an annuity contract which pays him $640 per month for life beginning June 1, 2008 when Ned was 70 years old and his life expectancy was 18 years. This annuity cost him $81,500. How much of this annuity is includible in gross income for the 2016 tax year (assuming all payments are received by Ned)? 10. Would any of the following items be deductible on an individual's income tax return? If so, would the item be deductible for or from AGI? Explain each item. Deductible Y or N For or From AGI Explain Stamp collecting expenses of $1,250 when stamp sales were only $400 and stamp collecting is considered a hobby $3,500 loss on the sale of a personal sailboat Interest of $4,000 on money borrowed to purchase tax-exempt securities. A legal fee of $890 for estate planning advice of which 50 percent related to tax planning. 11. John Jones has adjusted gross income of $35,000. During 2016, John contributed $4,000 in cash to his church and stock with a fair market value of $22,000 to the Girl Scouts. The stock had cost John $16,000. What are John's choices with regard to his contribution deduction for 2016 and how does that choice affect future years? 12. Jim Jeeves is a single individual. During the year, his car which he used entirely for pleasure was stolen and never recovered. The car had a fair market value of $14,000 before it was stolen, which was less than the car's adjusted basis. Jim received only $9,200 as a recovery from his insurance company. His adjusted gross income is $15,000. What is the amount of the personal casualty loss deduction that Jim can report as an itemized deduction for the year (assume he itemizes)? 13. Mark is a lawyer who lives and practices law in Minneapolis. During 2016, Mark takes his family (wife and 1 child) to Florida (plane tickets are $310 per person) where they stay while Mark attends a legal conference for three days. The remaining two days they spend at the beach. The hotel room costs $135 per night and meals are $80 per day total for the three of them. Mark also tracks his mileage on his car that is used for personal and business purposes. 4530 miles are for commuting from home to his office downtown. 2,215 miles are spent driving from his office to various client locations for meetings. Mark also has the receipts for many of the lunches that he takes his clients to. He usually takes them to the country club where he has a membership. The membership costs Mark $1,400 per year and he spent $960 in lunches at the country club. These lunches involve some discussion of a legal issue and Mark has kept a record of these lunches. None of these expenses are reimbursed by Mark's employer. a. Which of the expenses listed above would be deductible by Mark and how much would be deductible (ignore any 2% floor)? 14. Joe and Jill Hausman's AGI for the year is $124,130 and they have 3 children under 16. They have itemized deductions of 22,500. What is their final tax liability for 2016 after credits? 15. What is the amount of non-refundable dependent care credit allowed Sally Smith, a divorcee, who pays $3,600 for the year to send her one 4 year old daughter to a babysitter while she works? What would her earned income credit be? Sally's only income is $24,500 from her secretary job. 1. Emil and Judy Ryan are married and file a joint return. They have no children. Emil is 68 and Judy is 60. They contribute over half of the support for Judy's mother, Cora (age 85). Cora earned $1,970 in 2016 and received $2,900 in social security. Cora lives in an apartment in the Ryan's basement and does not pay any of her own expenses.. Emil earned a salary of $72,650 in 2016 from his job at Korma Corp. Judy worked part-time and earned $19,520. They also received the following: Life insurance proceeds $70,000 Interest on State of Virginia bonds $320 Dividends on stock of a Swiss corporation $920 Interest on savings accounts $93 If the Ryan's have itemized deductions of $13,260, what is their taxable income for 2016. 2. Mr. and Mrs. Messimer have adjusted gross income of $338,400 in 2016. Of that amount they have 16,200 of interest on bonds with no investment expenses. 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 2016 and earned $6,000. A scholarship pays for his tuition of $30,000 but the Messimers 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 Messimers sent her $4,000 for help with expenses and estimate that she made $4,500 more that she used for her support. Their itemized deductions are $48,350 before any reduction. The Messimers had $47,000 withheld from their paychecks during 2016. What is the Messimer's final amount that should be paid with their return for 2016? 3. Betty Norman is single and has the following sources of income in 2016: Social security benefits $14,500 Taxable Interest income $7,000 Dividend income $7,280 Tax-exempt interest income $12,204 Ms. Norman is 71 years of age and has $6,760 in itemized deductions. What is her taxable income for 2016? 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 2016 at his part-time job. Tiffany is 12 and Donna is 14. All three live at home with Erica who provides more than half of their support. a. Erica had wages in 2016 (box a of W-2) of $64,500 and $2,600 was withheld from her check for federal taxes. She received 1099-Int from First Federal Savings Bank for $35, Olympic Savings for $75 and State of Pennsylvania bonds $300. b. Erica paid $5,400 toward tuition at Heartland College for Randall during 2016. Erica will contribute the maximum deductible amount to her IRA for 2016 and is a participant in her employer's pension plan. c. Some payments that Erica thinks might be deductible are: $2,140 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 A, $7,450 for interest on first mortgage and $1,634 interest paid on 2nd mortgage, real estate taxes $3,240, private mortgage insurance $420, losing lottery tickets $520, $300 to get her taxes for last year prepared, gifts to her church $570, 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. d. How much would Erica receive as a refund from her 2016 taxes