Sabina recently was sickened by eating spoiled peanut butter. She successfully sued the manufacturer for her medical bills ($4,140), her emotional distress ($6,900—she now fears peanut butter), and punitive damages ($52,000). What amount must Sabina include in her gross income?

Lebron received $68,400 of compensation from his employer (no overtime) and he received $693 of interest from a municipal bond. What is the amount of Lebron's gross income from these items?

Jorge purchased a life annuity for $2,800 that will provide him $70 monthly payments for as long as he lives. Based on IRS tables, Jorge's life expectancy is 100 months. How much of the first $70 payment will Jorge include in his gross income?

In June of Year 1, Edgar's spouse died, and Edgar did not remarry during the year. What is Edgar’s filing status for Year 1 (assuming they did not have any dependents)?

Lydia and John Wickham filed jointly in Year 1. They divorced in Year 2. Late in Year 2, the IRS discovered that the Wickhams had underpaid their Year 1 taxes by $2,000. Both Lydia and John worked in Year 1 and received equal income but John had $2,000 less tax withheld than Lydia did. Who is legally liable for the tax underpayment?

All of the following are for AGI deductions except:

Joanna received $57,900 compensation from her employer (no overtime), the value of her stock in ABC company appreciated by $7,400 during the year (but she did not sell any of the stock), and she received $37,000 of life insurance proceeds from the death of her spouse. What is the amount of Joanna's gross income from these items?

Last year Henry borrowed $24,000 to help pay for his dependent daughter's college tuition. This year (in 2026) Henry paid $3,300 of interest on the loan. How much, if any, interest can Henry deduct if he files single with AGI of $88,300?

Chuck has AGI of $71,300 and has made the following payments:

Calculate the amount of taxes that Chuck can include with his itemized deductions. Enter as $XX,XXX

Jamison's gross tax liability is $7,300. Jamison had $2,325 of available credits and he had $4,200 of taxes withheld by his employer. What are Jamison's taxes due (or taxes refunded) with his tax return?