Advanced Scenario 1 Https Www Scribd Com Document 327918478 Advanced Scenario 6

Advanced-Scenario 1.

Question 15

Question 16

Question 17

Question 18

Question 19

Question 20

Advanced-Scenario 2.

Page 100

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

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