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Ken is 63 years unmarried and old. He retired at age 55 when he sold his business, Understock.com. While Ken is retired, he is still very active. Ken reported the given financial information this year. Consider Ken's modified adjusted gross income for purposes of the bond interest exclusion and for evaluating the taxability of his Social Security benefits is $70,000 and that Ken files as a single taxpayer. Evaluate Ken's 2012 gross income.
1. Ken received $13,000 in Social Security benefits for the year.
2. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $5,500 in itemized deductions last year (the standard deduction for a single filer was $$5,950).
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