Scenario 7: Quincy and Marian Pike
Question 21. What is the total taxable interest income shown on Line 8a of Form 1040? $70, $95, $150, $245
Question 22 : How does the code Q on Quincy’s Form 1099-R from Essex Bank affect the return?
The entire distribution is not taxable. Half of the distribution is taxable. The entire distribution is taxable. There is no such code. The taxpayer must get a corrected Form 1099-R from the bank.
Question 23 What is the amount shown on Form 1040, Line 13 – Capital gain or loss?
A gain of $2,215
A gain of $2,141
A gain of $1,766
A gain of $1,691
24. How much of the $17,500 gross distribution reported on Form 1099-R is taxable in 2016? $______
25. A portion of Quincy’s Social Security income is taxable. True or False
26. The amount of shared responsibility payment on the Pikes’ Form 1040, page 2 is $695. True or False
27. The Pikes are entitled to an earned income credit for 2016. True or False