3 Calculate Adjusted Gross Income. John Smith is single-for 2020 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 Bribary to Police Officer Should he itemize or use standard deduction? 60,000 6,000 16,000 6,000 4,000 5,000 7,500 15,000 30,000 6,500 400 500