Required information [The following information applies to the questions display

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Required information

[The following information applies to the questions displayed below.]

This year Jack intends to file a married-joint return with two dependents. Jack received $171,400 of salary and paid $8,550 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid qualified moving expenses of $5,950 and $27,700 of alimony. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

a. What is Jack's adjusted gross income? Assume that Jack will opt to treat tax items in a manner to minimize his AGI.

Explanation / Answer

Answer

Adjusted gross income

W.N.

Deductible amount of student loan interest:

Maximum deduction before phase-out $2500

=$2,500 × (($137,750 $135,000) ÷ $30,000)

=$2500*0.0917

=$229

Student loan interest deduction =$2500-$229 = $2271

Particulars Amount Salary 171400 Less: Alimony paid (27700) Less: Qalified moving Expenses (5950) Modified AGI 137750 Less: Student loan interest deduction (2271) Adjusted Gross Income (AGI) 135479

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