Question

In: Accounting

This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid...

This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,300 and $28,300 of alimony to his ex-wife, Diane, who divorced him in 2012.

a. What is Jack's adjusted gross income?

b. Suppose that Jack also reported income of $8,800 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?

Solutions

Expert Solution

Answer :

From the year 2018 & 2019 MAGI phaseout Limit for student loan is ($135000 - $165000) and (140000 - 170000)

(a)

- Year 2018 Year 2019
Salary 172500 172500
Less : Moving Expense (from 2018) 0 0
Less : Alimony paid -28300 -28300
Modified adjusted income 144200 144200
Less : Student loan interest deduction -1733 -2150
Jack's AGI 142467 142050

For a

2018 - Student loan interest deduction (2500) - (2500/30000)*(144200 - 135000) 1733
2019 - Student loan interest deduction (2500) - (2500/30000)*(144200 -140000) 2150

(b)

- Year 2018 Year 2019
Salary 172500 172500
Income from partnership 8800 8800
Less : Moving Expense From 2018) 0 0
Less : Alimony paid -28,300 -28,300
Modified adjusted income 153000 153000
Less : Student loan interest deduction -1000 -1417
Jack's AGI 152000 151583

For (b)

2018 - Student loan interest deduction [(2500) - (2500/30000)*(153000 - 135000)] 1000
2019 - Student loan interest deduction [(2500) - (2500/30000)*(153000-140000)] 1417

Kindly Up-vote Thank You !!!

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid...
This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,300 and $28,300 of alimony to his ex-wife, Diane, who divorced him in 2012. a. What is Jack's adjusted gross income? b. Suppose that Jack also reported income of $8,800 from a half share of profits from a partnership....
This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid...
This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,300 and $28,300 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.) a. What is Jack's adjusted gross income? b. Suppose that Jack also...
This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid...
This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,300 and $28,300 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.) a. What is Jack's adjusted gross income? b. Suppose that Jack also...
This year Jack intends to file a married-joint return. Jack received $178,800 of salary and paid...
This year Jack intends to file a married-joint return. Jack received $178,800 of salary and paid $7,050 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $7,400 and $31,200 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 $11,300 from a half...
This year Jack intends to file a married-joint return. Jack received $174,000 of salary, and paid...
This year Jack intends to file a married-joint return. Jack received $174,000 of salary, and paid $9,900 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,900 and $32,400 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.) a. What is Jack's adjusted gross income? b. Suppose that Jack also...
This year Jack intends to file a married-joint return. Jack received $175,600 of salary and paid...
This year Jack intends to file a married-joint return. Jack received $175,600 of salary and paid $9,250 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $5,050 and $33,000 of alimony to his ex-wife, Diane, who divorced him in 2012. a. What is Jack's adjusted gross income? b. Suppose that Jack also reported income of $5,600 from a half share of profits from a partnership....
This year Jack intends to file a married-joint return. Jack received $172500 of salary and paid...
This year Jack intends to file a married-joint return. Jack received $172500 of salary and paid $5000 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 $4300 and $28300 of alimony. (Do not round intermediate calculations.) A.what is jack adjusted gross income B.Suppose that jack also reported income of $8800 from a half share of profits from a partnership. Disregard any potential self employment...
This year Jack intends to file a married-joint return with two dependents. Jack received $173,460 of...
This year Jack intends to file a married-joint return with two dependents. Jack received $173,460 of salary and paid $7,850 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 $8,350 and $30,100 of alimony. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) b. Suppose that Jack also reported income of $8,850 from a half share of profits...
Tax Year 2019 This year Jack intends to file a married-joint return. Jack received $173,400 of...
Tax Year 2019 This year Jack intends to file a married-joint return. Jack received $173,400 of salary and paid $8,600 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,550 and $30,055 of alimony to his ex-wife, Diane, who divorced him in 2012. (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) a. What is Jack’s adjusted gross...
Jack and Jane are married and file a joint return for 2020. Theyhave wage income...
Jack and Jane are married and file a joint return for 2020. They have wage income of $150,000; net long-term capital gains of $20,000; net short-term capital gains of $5,000; corporate bond interest of $3,000; share of S corporation income of $8,000; cash distributions from the S corporation of $3,000; ordinary cash dividends of $6,000; qualifying cash dividends of $5,000; inheritance received from deceased aunt’s estate of $18,000; deductions for AGI (Adjusted Gross Income) of $11,000; itemized deductions of $26,000;...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT