Question 1
In 2016, Richard, a single taxpayer, has adjusted gross income of $40,150. His AGI includes $4,000 of qualified dividends. Richard has no dependents and does not itemize deductions. What is his 2016 federal income tax?
◦ $3,406
◦ $4,024
◦ $4,054
◦ $4,006
Question 2
In addition to Social Security benefits of $8,000, Mr. and Mrs. Wells have adjusted gross income of $32,000 and tax-exempt interest of $1,000. They will file a joint return. The taxable portion of their Social Security benefits will be
◦ $0.
◦ $2,500.
◦ $4,000.
◦ $8,000.