Hardaway earned $147,000 of compensation this year. He also paid (or had paid for him) $6,100...

Hardaway earned $147,000 of compensation this year. He also paid (or had paid for him) $6,100 of health insurance (not through an exchange).

What is Hardaway's AGI in each of the following situations? (Ignore the effects of Social Security and self-employment taxes.)

a. Hardaway is an employee and his employer paid Hardaway’s $6,100 of health insurance for him as a nontaxable fringe benefit. Consequently, Hardaway received $140,900 of taxable compensation and $6,100 of nontaxable compensation.

Hardaway’s AGI -------------------------?

b. Hardaway is a self-employed taxpayer, and he paid $6,100 of health insurance himself. He is not eligible to participate in an employer-sponsored plan.
Hardaway’s AGI-----------------------?

Expert Solution

jeff jeffy answered 10 months ago

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