Question

This Year Diane Intends To File A Married Joint Return. Diane Received 177,500 Of Salary And Paid 5,000 Of Interest On Loans Used To Pay Qualified Tuition Costs For Her Dependent Daughter, Deb This Year Diane Has Also Paid Moving Expenses Of 4,300 And 28,300 Of Alimony To Her Ex Husband Jack Who She Divorced In 2012 A What Is Diane's Adjusted Gross

This year Diane intends to file a married joint return. Diane received 177,500 of salary and paid 5,000 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb this year Diane has also paid moving expenses of 4,300 and 28,300 of alimony to her ex husband Jack who she divorced in 2012
A What is Diane's adjusted gross income?
B Suppose that Diane 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 Diane report under these circumstances?

Answer 1

Diane's adjusted gross income for 2012 is $147,050.

We have these data:

Salary = $177,500

Alimony Paid = $28,300

The modified AGI to determine amount of interest deduction is:

= $177,500 - $28,300

= $149,200

For year 2022, the maximum deduction for interest, who filled as married jointly, on student loan ($2,500) begins after the Modified adjusted gross income reach $145,000 and up to $175,000

So, the maximum interest deduction availabale is:

= $2,500 - $2,500 * (($149,200 - $145,000) / $30,000)

= $2,150.

The adjusted gross income is then:

Modified AGI - Maximum interest deduction

= $149,200 - $2,150

= $147,050.

Answer 2

Diane's adjusted gross income for 2012 is $147,050.

We have these data:

Salary = $177,500

Alimony Paid = $28,300

The modified AGI to determine amount of interest deduction is:

= $177,500 - $28,300

= $149,200

For year 2022, the maximum deduction for interest, who filled as married jointly, on student loan ($2,500) begins after the Modified adjusted gross income reach $145,000 and up to $175,000

So, the maximum interest deduction availabale is:

= $2,500 - $2,500 * (($149,200 - $145,000) / $30,000)

= $2,150.

The adjusted gross income is then:

Modified AGI - Maximum interest deduction

= $149,200 - $2,150

= $147,050.