In: Accounting
Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This year, the Johnsons received $258,000 of gross income.
Determine the Johnson's AGI given the above information:
Johnson AGI |
Johnson's AGI is 133665
Johnson's AGI | ||
Particulars | Amount | Explanation |
Gross Income | 258000 | |
Ordinary & necessary business expense | 104950 | Expenses associated with business (40750 + 45900 +18300) |
Unreimbursed Emplyoment Expense | 0 | Unreimbursed Emplyoment Expense are deductible from AGI not for AGI |
Real property taxes & investment expense | 0 | They are deductible from AGI not for AGI |
Rental Expenses | 8530 | Rental expenses are deductible for AGI even though they are technically investment or production of "income expenses" |
Self employed health insurance | 4530 | Jeremy may deduct all the costs of his health insurance because he is not eligible for ST’s health plan |
Self employment taxes | 1265 | 1/2 of self employment taxes |
Alimony | 5060 | Alimony allowed as for AGI deduction. Child support payments are not deductible |
Charitable Contributions | 0 | Charitable contributions are from not for AGI deductions |
Total for AGI deductions | 124335 | |
AGI | 133665 |