Question

Rabbi Shlomo received the following income for 2022: $50,000 annual salary, which includes a $3,200 utility allowance, plus the use of a home owned by the synagogue, which has a fair rental value of $8,000. In addition, Rabbi Shlomo earned $2,400 while working part-time at a local bookstore. If his housing expenses were higher than his allowance, how much income must Rabbi Shlomo include as gross income for purposes of calculating his federal income tax?

Answer 1

Rabbi Shlomo must include $63,600 as his gross income for purposes of calculating his federal income tax.

Step-by-step explanation:

To calculate Rabbi Shlomo's gross income for federal income tax purposes, we need to include his total income from various sources. In this case, his income includes his annual salary of $50,000, the utility allowance of $3,200, the fair rental value of the home owned by the synagogue ($8,000), and the earnings from his part-time job at the bookstore ($2,400).

To determine the amount he must include as gross income, we simply add up all these amounts: $50,000 + $3,200 + $8,000 + $2,400 = $63,600. Therefore, Rabbi Shlomo must include $63,600 as his gross income for purposes of calculating his federal income tax.