Part1

Ivette received Social Security benefits during the current year of $16,400.Her only other sources of income were wages of 14,000, interest income from corporate bonds of $4,000, taxable domestic dividends of $4,100, and municipal bond interest of $6,600.Ivette is single, 72-years of age, and has no dependents.

Calculate Ivette's AGI.

Part2

Willard-Skip is self-employed and earned net income (after all proper deductions except one-half of the self employment tax) for tax purposes of $59,000 from his business. Willard's only other income was

Qualified dividends $950

Corporate bond interest of 1,200

Municipal bond interest900

a. Calculate Willard's self-employment tax and his adjusted gross income.

b. How would your answer to "1" differ if Willard also had earned FICA wages of $76,400?

c. How would your answer to "1" differ if Willard's net earnings from the business were $148,000, and there were no wages?

Part 3

Sebastian had a rather good year in 2019.Sebastian is unmarried and provides over one-half of the support for his 39-year-old roommate who legally lives in the home for the entire year.Sebastian had the following for 2019

Salary$64,744

Interest income8,375

Rental income22,350

Rental expenses12,350

QBI deduction from AGI2,000

Standard deduction12,200

Itemized deductions11,700

Calculate Sebastian's adjusted gross income, taxable income, and net income tax before prepayments.