1. Sally has a salary of $80,000. She has $10,000 of income from city bonds, and received $5,000 for reimbursements of medical expenses from a lawsuit regarding physical injury. She received an inheritance of $100,000 when her mom passed away. Sally is single, has no dependents, and no itemized deductions in 2022. What is her average tax rate?

2. Kevin has a salary of $50,000. He has $5,000 of interest income from Apple Inc. bonds and $100,000 in QBI. He earned $600,000 from illegal actions in 2022. His husband, Mike, also has a salary of $50,000. Together, they file married filing jointly in 2022, and have TWO qualifying dependents, but no itemized deductions. What is their effective tax rate?

3. Cherry paid alimony to her first husband of $12,000 (divorced 2010). She received alimony from her second husband of $20,000 (divorced 2018). Cherry contributes $500 to a health savings plan. Cherry incurred $1,000 in gambling losses after her second divorce. She sold stock that she owned for two years for a loss of $5,000. By the end of the year, Cherry had contributed $6,000 to their qualified retirement account. What are Cherry's total 2022 for AGI deductions?

4. Hailey filed as a married filing jointly taxpayer. In February of this year (2023), she received a $750 refund of state income taxes that she paid in 2022. Last year (2022), Hailey claimed itemized deductions of $26,400. Her itemized deductions included state income taxes paid of $2,750. How much of the refund, if any, must Hailey include in gross income?