Question
Lance and Danielle are cash-method, calendar-year taxpayers who file a joint return for 2017. They do not have any dependents at any time during 2017
Lance and Danielle are cash-method, calendar-year taxpayers who file a joint return for 2017. They do not have any dependents at any time during 2017 and have timely filed a joint return for each year of their marriage. The following are items that Lance and Danielle received in 2017:
Income Item | Amount |
Lance's Social Security benefits | $7,000 |
Danielle's Social Security benefits | 2,000 |
Interest on federal income tax refund | 600 |
Interest on state government obligations | 1,000 |
The $750 dividend on stock is held in a public corporation that offers a dividend reinvestment program in which Lance and Danielle participate. The dividend reinvestment program allows participants to use dividends to buy more stock in the corporation at a price less than its fair market value. The fair market value of shares that Lance and Danielle received through the plan on the dividend payment date was $1,000.
Calculate the following income items using the information above and exhibits.
For each item, enter the appropriate amounts in the associated cells. If the amount is zero, enter a zero (0). Round all amounts to the nearest whole dollar.
Income Item | Amount |
1. What is the amount of Lance and Danielle's taxable Social Security benefits for 2017? | |
2. What amount of interest income is taxable on Lance and Danielle's 2017 joint income tax return? | |
3. What amount of dividend income should Lance and Danielle report on their 2017 joint income tax return? | |
4. What is the total amount of gross income that must be reported on Lance and Danielle's 2017 joint income tax return? |
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