Situation Amount 123 1. Student X is a single taxpayer who paid $3,000 of interest on qualified educational loans. Student X had AGI of $75,000. $1,667 123 2. Mr. and Mrs. Bell are both under 50 and are filing a joint return. During the year, Mr. Bell earned $7,500 in compensation and Mrs. Bell earned $3,000 during the year. The Bells contribute the maximum deductible to their IRAS. 123 3. One Person Corp., a sole proprietorship, paid $20,244 in self-employment taxes. $10,025 123 4. Penny was assessed and paid (forfeited) $2,900 in interest penalty for early withdrawal from a time savings account 123 5. Mr. Wallace is a full-time teacher at a local high school who earned $50,000 during the year and incurred the following expenses: $225 for supplementary materials used in the classroom (reimbursed) $3,000 contribution to a self-coverage Health Savings Account $2,400 of alimony paid to his ex-wife (divorce finalized in 2018) $3,100 contribution to his IRA . . Situation Amount 123 1. Student X is a single taxpayer who paid $3,000 of interest on qualified educational loans. Student X had AGI of $75,000. $1,667 123 2. Mr. and Mrs. Bell are both under 50 and are filing a joint return. During the year, Mr. Bell earned $7,500 in compensation and Mrs. Bell earned $3,000 during the year. The Bells contribute the maximum deductible to their IRAS. 123 3. One Person Corp., a sole proprietorship, paid $20,244 in self-employment taxes. $10,025 123 4. Penny was assessed and paid (forfeited) $2,900 in interest penalty for early withdrawal from a time savings account 123 5. Mr. Wallace is a full-time teacher at a local high school who earned $50,000 during the year and incurred the following expenses: $225 for supplementary materials used in the classroom (reimbursed) $3,000 contribution to a self-coverage Health Savings Account $2,400 of alimony paid to his ex-wife (divorce finalized in 2018) $3,100 contribution to his IRA