Please work out how solutions are found and provide explanat

Please work out how solutions are found and provide explanations.

16. How much of Gordon\'s Social Security is taxable?

A. $0

B. $16,000

C. $13,600

D. $6,646

17. Gordon is over 65. How does that affect his tax return?

A. There is no effect.

B. It increases his standard deduction.

C. It increases his personal exemptions.

D. He must itemize his deductions.

18.What is the total amount of Gordon’s federal income tax withholding?

A. $750

B. $1,500

C. $1,800

D. $3,300

19. What form must be used to split Gordon\'s refund?

A. Form 8888

B. Form 8880

C. Form 8862

D. There is no form. A refund can\'t be split.

Interview Notes Gordon\'s wife Ellen passed away in 2016 and he has not remarried. He is not sure of his filing status for this year, but mentions he filed a joint return last year. Gordon did not receive a Form 1099-INT, but called County Bank and confirmed that in 2017 he received $25 of interest income in his savings account with no withholding and no early withdrawal penalty. Gordon won a $3,000 prize. He brought his Form W2-G. Gordon was covered by Medicare Parts A and B for the whole year. .If Gordon receives a refund, he would like to deposit half into his checking account and half into his savings account. Documents from his bank show that the routing number for both accounts is: 111000025. His checking account number is 987654321 and his savings account number is 234567890 SECO 30-00-XXXX Gordon Ferris

Solution

16. A. $0

Explanation- Social security benefits are never taxable.

17. B. it increases his standard deduction.

19.A. Form 8888

Explanation- If you file IRS Form 8888 with federal tax return, the Internal Revenue Service will direct deposit your refund into multiple accounts and even give the option of purchasing U.S. savings bonds.