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12. Amy sued Paul who caused the car accident. Amy received the following settlement:

Physical damage to her arms caused by the accident	$5,000
Loss of income while her physical injuries were healing	$3,000
Medical expenses for treatment of injury	$7,000
Punitive Damages	$10,000

What is Amys gross income?

13. In 2020, George and Martha are married and file a joint tax return claiming their two children as dependents. Assuming their AGI is $119,650, George and Marthas child tax credit is:

14. go over the basic concept of education creditsthe American Opportunity credit and Lifetime learning credit

• requirements
• the maximum amount of the credits

15. William and Annette Johnson (both age 45) are married taxpayers who file a joint return. They have a son, Sean, age 7. During the tax year, they had the following receipts:

1	Salary ($75,000 for William, $62,000 for Annette)	$137,000
2.	Interest Income City of Normal school bonds $1,000 Ford Motor Company bonds 1,200 PNC Bank certificate of deposit 600	2,800
3.	Annual gift from parents	26,000
4.	Lottery winnings	1,000
5.	Short-term capital loss (from stock investment)	( 5,000)
6.	Federal income tax refund from last year return	2,400
7.	Child support from Annette's ex-husband	8,000
8.	State income tax refund from the prior year (they used standard deduction in the prior year)	700

During 2019, they also have the following facts related to their expenses:

1.	Medical expenses Medical insurance premiums $4,500 Hospital expenses for Sean 3,500 Face-lift for Annette (not for medical reason) 8,500	16,500
2.	Property taxes	5,000
3.	Contribution to qualified retirement plan (IRA)	10,000
4.	Qualified interest on home mortgage	5,000
5.	Utilities (water, gas, and electricity)	4,500
6.	Car insurance	1,200
7.	State income tax paid	3,000
8.	Interest on car loan	1,500
9.	Cash contribution to church	1,300
10.	Union dues	480
11.	Unreimbursed employee expenses	2,000
12.	Qualified moving expense	2,500
13.	Federal income tax	7,500
14.	Social Security tax and Medicare tax	3,500
15.	Registration fee for their vehicles	560

Following are line items selected from their tax return (Form 1040), please help them to report the correct figures on each provided line.

	Reported amount
Total gross income
Deductions for AGI
AGI
Itemized or Standard deductions
Taxable income
Child tax credit and non-child dependent credit

Following are their itemized deductions, please help them to calculate the allowable deduction (after subject to ceiling or floor) for the following items:

1.	Allowable deduction on medical and dental expenses:
2.	Allowable deduction on taxes they paid
3.	Allowable deduction on Interest paid
4.	Allowable deduction on Gift to Charity

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