Question

What is Kevin & Jim's AGI as a married couple filing jointly?

Kevin’s salary                                                              $94,000

Jim’s salary                                                                   33,000

Municipal bond interest                                                      2,400

Interest on C.D.s at Universal Savings                               3,100

*Qualified dividend on GM stock                                        1,600

*Qualified dividends should be reported as both qualified and ordinary on the tax forms.

Expenditures

Eye exam and eyeglasses for Aubrynne                                                    600

Orthodontic work to correct Bryson’s congenital defect                          2,500

Medical insurance premiums (paid on an after tax basis)                         1,800

State withholding for income tax                                                            8,800

Federal withholding for income tax                                                      16,000

State income taxes paid with last year’s return                                           500

Property tax on condo                                                                           1,100

Ad valorem Property tax on automobile                                                    300

Home mortgage interest                                                                        10,200

Interest on credit cards                                                                             200

Cash contribution to Oregon Meditation center                                       3,900

Cash contribution to a senator’s campaign                                              1,500

Answer 1

Calculation of Kevin & Jim's Adjusted gross total income :

Particulars	Amount in $
Income's:
Kevin’s salary	94,000
Jim’s salary	33,000
Municipal bond interest	2,400
Interest on C.D.s at Universal Savings	3,100
Qualified dividend on GM stock	-	( It is exempted from Income )
Total Income	1,32,500
Expense's:	Amount in $
Eye exam and eyeglasses for Aubrynne	600
Orthodontic work to correct Bryson’s congenital defect	2,500
Medical insurance premiums (paid on an after tax basis)	1,800
State withholding for income tax	8,800	( This deduction is limited to $ 10,000 as per federal taxation rules )
Federal withholding for income tax	16,000
State income taxes paid with last year’s return	500
Property tax on condo	1,100
Ad valorem Property tax on automobile	300
Home mortgage interest	10,200
Interest on credit cards	200
Cash contribution to Oregon Meditation center	3,900
Cash contribution to a senator’s campaign	1,500
Total of Expenses	30,700
Adjusted Gross total Income	1,01,800