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Liula [17]
3 years ago
15

This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $75,300 and he rece

ived $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,900 Cost of purchasing a delivery uniform 1,500 Contribution to State University deliveryman program 1,350 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan’s student loans this yea
Business
1 answer:
photoshop1234 [79]3 years ago
4 0

Answer:

Evan's AGI is $ 66,000 and his taxable income is $ 54,000

Explanation:

To calculate the AGI you have to perform the following:

Salary                                                                                                 $ 67,300

work hourly pay                                                                                     <u>$ 700</u>

Gross pay                                                                                             $68,000

Modified AGI                                                                                       $ 68,000

<h3>Student loan interest deduction (2500)-((68000-65000)×(2500/15000)) =                                                    $-2000</h3>

AGI                                                                                                          $66,000

Next, to calculate the taxable income you have the follwong substraction

AGI                            $ 66,000

Standard deduction   $12,000

Personal deduction   <u>       0        </u>

Taxable Income         $ 54,000

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