Question: 1. In 2016, Heather, an elementary school teacher, had the following transactions: Alimony received $2, 400 Salary earned 38,000 Cash dividends received on stock investment 1,000 Purchase of classroom school supplies 300 Heather's AGI for 2016 is: $39, 400 $38, 400. $41, 150 $38,000. None of the above. Henry and Carol received $8, 600 in Social Security benefits in 2016. Their AGI was $90,000 before inclusion of any social security. How much, if any, of the social security benefits must they include in gross income?
2. Homer (age 68) and his wife Jean (age 70) file a Joint return. For 2016 they received dividend income of $42,000. They have itemized deductions of $7,000. What is their taxable income for 2016?
3. Trey, age 16, is claimed as e dependent on his parents' tax return, During 2016 he had interest income of $1.550 from a savings account end 5600 wages from part time job. Determine the Trey's taxable income.