3 Calculate Adjusted Gross Income. John Smith is single for 2019 Calculate Taxable income Salary Dividend income Rental Income Rental Expenses Payment of Alimony Contribution to traditional IRA Property taxes on house Interest on house Medical Expenses State income Taxes Traffic Ticket for over speeding Should he itemize or use standard deduction? 40,000 4,000 15,000 6,000 4,000 5,000 8,500 12,500 25,000 3,000 400 3 Calculate Adjusted Gross Income. John Smith is single for 2019 Calculate Taxable income Salary Dividend income Rental Income Rental Expenses Payment of Alimony Contribution to traditional IRA Property taxes on house Interest on house Medical Expenses State income Taxes Traffic Ticket for over speeding Should he itemize or use standard deduction? 40,000 4,000 15,000 6,000 4,000 5,000 8,500 12,500 25,000 3,000 400