This is my first question, I don't know if it's too long.

Mrs. Vick, a 40-year-old cash basis taxpayer, earned $45,000 as a teacher and $5,000 as a part-time real estate agent in Year 2. Mr. Vick, who died on July 1, Year 2, had been permanently disabled on hisjob and collected state disability benefits until his death. For all of Year 2 and Year 3, the Vick's residence was the principal home of both their 11-year old daughter,joan, and Mrs. Vick' 5 unmarried cousin, Fran Phillips, who had no income in either year. During Year 2, Joan received $200 a month in survivor social security benefits that began on August 1, Year 2, and will continue at least until her 18th birthday. In Year 2 and Year 3, Mrs. Vick provided over one-half the support forJoan and Fran, both of whom were US. citizens. Mrs. Vick did not remarry. Mr. and Mrs. Vick received the following in Year 2: Earned income $50,000 Workers' compensation benets 1,500 Refund from amended tax return 50 Savings account & certificates of deposit 350 Municipal bonds 100 Gift 3,000 Interest on: - Pension benefits Gambling Winnings Life insurance proceeds - Jury duty pay Additional information: - Mrs. Vick received the $3,000 cash gift from her uncle. 0 Mrs. Vick received the pension distributions from a qualified pension plan, paid for exclusively by her husband's employer. - Mrs. Vick had $100 in gambling losses in Year 2. - Mrs. Vick was the beneciary ofthe life insurance policy on her husband's life. She received a lump-sum distribution. The Vicks had paid $500 in premiums. - Mrs. Vick received Mr. Vick's accrued vacation pay of $500 in Year 3. List Filing Status _ 5 Married filingjoint Head of household a Qualifying widow with dependent child Number of Exemptions _ _ Three exemptions _ For items 1 and 2, determine and select from the choices below, both the filing status and the number of exemptions for each item. Filing Status Number of Exemptions Determine the ling status and the number of exemptions that Mrs. Vick can claim on the Year 2 federal income tax return, to get the most favorable tax results. Determine the ling status and the number of exemptions that Mrs. Vick can claim on the Year 3 federal income tax return to get the most favorable tax results, if she solely maintains the costs of her home. Taxable Amount $0 $200 $250 $300 $350 $400 $450 :m'rlrnanwza $900 For items 3 through 9, determine the amount, if any, that is taxable and should be included in Adjusted Gross Income (AGI) on the Year 2 federal income tax return led by Mrs. Vick. State disability benefits Interest income Pension benefits Gift Life insurance proceeds Jury duty pay Gambling winnings Tax Treatment n Not deductible. Deductible in Schedule A - Itemized Deductions, subject to threshold of10% of adjusted gross income. Deductible in Schedule A - Itemized Deductions, subject to threshold of 2% of adjusted gross income. Deductible on page 1 of Form 1040 to arrive at adjusted gross income. Deductible in full in Schedule A - Itemized Deductions. Deductible in Schedule A - Itemized Deductions, subject to threshold of 50% of adjusted gross income. During Year 2 the following payments were made or losses were incurred. For items 10 through 23, select the appropriate tax treatment. A tax treatment may be selected once, more than once, or not at all. 10 Premiums on Mr. Vick's personal life insurance policy. 11 Penalty on Mrs. Vick's early withdrawal of funds from a certicate of deposit. Mrs Vick's substantiated cash donation to the American Red Cross. Payment of estimated state income taxes. Payment of real estate taxes on the Vick home. Loss on the sale of the family car. Cost in excess ofthe increase in value of residence. for the installation of a stair lift in January Year 2, related directly to the medical care of Mr. Vick. 17 The Vicks' health insurance premiums for hospitalization coverage. 18 CPA fees to prepare the Year 1 tax return. 19 Amortization over the life of the loan of points paid to renance the mortgage at a lower rate on the Vick home. One- half the self- employment tax paid by Mrs. Vick Mrs Vick's $100 gambling losses. Mrs Vick' 5 union dues. Year 1 federal income tax paid with the Vick's tax return on April 15, Year 3. For items 24 through 31, determine whether the statement is true or false regarding the Vicks' Year 2 income tax return. The funeral expenses paid by Mr. Vick's estate is a Year 2 itemized deduction. Any federal estate tax on the income in respect of decedent, to be distributed to Mrs. Vick, may be ta ken as a miscellaneous itemized deduction not subject to the 2% of adjusted gross income oor. A casualty loss deduction on property used in Mrs. Vick's part-time real estate business is reported as an itemized deduction. The Vicks' income tax liability will be reduced by the credit for the elderly or disabled. The CPA preparer is required to furnish a completed copy of the Year 2 income tax return to Mrs. Vick. Since Mr. Vick died during the year. the income limitation for the earned income credit does not apply. Mr. Vick's accrued vacation pay, at the time of his death. is to be distributed to Mrs. Vick in Year 3. This income should be included in the Year 2 Federal income tax return. The Vicks paid alternative minimum tax in Year 1.The amount of alternative minimum tax that is attributable to \"deferral adjustments and preferences" can be used to offset the alternative minimum tax in the following years