Question

Marsha is single, had gross income of $50,000, and incurred the following expenses: Charitable contribution - $2,000 Taxes and interest on home - 7,000 Legal fees incurred in a tax dispute - 1,000 Medical expenses - 3,000 Penalty on early withdrawal of savings - 250 Her AGI is:

Answer 1

Answer:

Adjusted gross income = $51000

Explanation:

given data

gross income = $50,000

Charitable contribution = $2,000

Taxes and interest  =  $7,000

Legal fees  = $1,000

Medical expenses = $3,000

Penalty = $250

to find out

Adjusted gross income AGI

solution

we get here Adjusted gross income AGI is express as

Adjusted gross income = gross income + Taxes and interest - Charitable contribution - Legal fees - Medical expenses  ............................1

put here value we get

Adjusted gross income = $50,000 +  $7,000 - $2,000 - $1,000 - $3,000

Adjusted gross income = $51000