1. Hardaway earned $137,000 of compensation this year. He also paid (or had paid for him) $7,100 of health insurance (not through an exchange).

What is Hardaway's AGI in each of the following situations? (Ignore the effects of Social Security and self-employment taxes.)

1. Hardaway is an employee, and his employer paid Hardaways $7,100 of health insurance for him as a nontaxable fringe benefit. Consequently, Hardaway received $129,900 of taxable compensation and $7,100 of nontaxable compensation.

2. Hardaway earned $137,000 of compensation this year. He also paid (or had paid for him) $7,100 of health insurance (not through an exchange).

What is Hardaway's AGI in each of the following situations? (Ignore the effects of Social Security and self-employment taxes.)

b. Hardaway is a self-employed taxpayer, and he paid $7,100 of health insurance himself. He is not eligible to participate in an employer-sponsored plan.

3. This year Jack intends to file a married-joint return. Jack received $173,000 of salary and paid $8,950 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $6,100 and $32,100 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

a. What is Jack's adjusted gross income?

4. This year Jack intends to file a married-joint return. Jack received $173,000 of salary and paid $8,950 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $6,100 and $32,100 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

b. Suppose that Jack also reported income of $10,100 from a half share of profits from a partnership. Disregard any potential self-employment taxes on this income. What AGI would Jack report under these circumstances?

5. Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $60,000 and has incurred the following medical expenses:

Dentist charges	$ 1,270
Physician charges	2,210
Optical charges	880
Cost of eyeglasses	305
Hospital charges	3,700
Prescription drugs	625
Over-the-counter drugs	515
Medical insurance premiums (not through an exchange)	1,260

a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

6. Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $60,000 and has incurred the following medical expenses:

Dentist charges	$ 1,270
Physician charges	2,210
Optical charges	880
Cost of eyeglasses	305
Hospital charges	3,700
Prescription drugs	625
Over-the-counter drugs	515
Medical insurance premiums (not through an exchange)	1,260

b. Suppose that Simpson was reimbursed for $250 of the physician's charges and $1,200 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

7. Dan has AGI of $50,000 and paid the following taxes during this tax year.

State income tax withholding	$ 1,000
State income tax estimated payments	500
Federal income tax withholding	2,800
Social Security tax withheld from wages	1,700
State excise tax on liquor	300
Automobile license (based on the cars weight)	250
State sales tax paid	300

Calculate how much Dan can deduct for taxes as an itemized deduction this year.