This year Jack intends to file a married-joint return. Jack received $170,000 of
ID: 2342669 • Letter: T
Question
This year Jack intends to file a married-joint return. Jack received $170,000 of salary and paid $7,250 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,450 and $30,300 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
b. Suppose that Jack also reported income of $13,100 from a half share of profits from a partnership. Disregard any potential self-employment taxes on this income. What AGI would Jack report under these circumstances?
Explanation / Answer
Solution:-
(b):-
= [(170,000 + 13,100 ) - ( 4,450 + 30,300)]
= 183,100 - 34,750
= $148,350
= $7,250 / 2
= $3,625
= 148,350 - 3,625
= $144,725
Particulars Amount Salary $170,000 Partnership income $13,100 qualified moving expenses $4,450 Alimony $30,300 Modified adjusted gross income= [(170,000 + 13,100 ) - ( 4,450 + 30,300)]
= 183,100 - 34,750
= $148,350
Interest on loan - amount paid ( $7,250) or 3,625 whichever is lower= $7,250 / 2
= $3,625
Adjusted gross income= 148,350 - 3,625
= $144,725
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