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1.

Rob and Laura had the following income and deductions during 2021:

Salaries $110,000

Interest income 10,000

Itemized deductions 26,000

Taxes withheld during year 12,000

Calculate Rob and Laura's tax liability due or refund. They file a joint tax return.

1. $177 refund.
2. $177 tax due.
3. $12,177 refund.
4. $12,177 tax due.

2.

18. Diana, who gives music lessons, is a calendar-year taxpayer using the cash-basis accounting. On October 1 of this year, she received $1,200 for a one-year contract beginning on that date to provide 10 lessons. She gave 6 lessons this year. How much should Diana include in income this year?

A) $480

B) $360

C) $720

D) $1,200

3.

Aayush, a single taxpayer, had the following income and deductions during 2021:

Salary $65,000

Interest on bank account 300

Tax-exempt interest 200

Deduction for AGI 3,500

Itemized deductions 13,000

Taxes withheld 7,500

Calculate Aayush's tax liability due or refund.

1. $1,015 refund.
2. $1,015 tax due.
3. $6,485 refund.
4. $6,485 tax due

4.

In 2021, the standard deduction for a married taxpayer filing a joint return and who is 67 years old with a spouse who is 65 years old is

A) $26,450.

B) $28,500.

C) $27,800.

D) $25,100.

5.

. On June 1, 2021, Diedra turned 67. Diedra has been a widow for three years and has no dependents. Her standard deduction is

A) $26,450.

B) $25,100.

C) $14,250.

D) $12,550.

6.

Lee is claimed as a dependent by his parents in 2021. He received $8,000 during the year from a part-time acting job, which was his only income. What is his standard deduction?

A) $1,100

B) $12,550

C) $8,000

D) $8,350

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