Consider the following letter and answer Shadys question.

To my friendly student tax preparer:

Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year . . . whatever that means. Its been a busy year and Im a busy man, so let me give you the lowdown on my life and you can do your thing.

I was unemployed at the beginning of the year and got $2,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $60,000 in base salary this year. My boss gave me a $7,000 Christmas bonus check on December 22. I decided to hold on to that check and not cash it until next year, so I wont have to pay taxes on it this year. Pretty smart, huh? My jobs pretty cool. I get a lot of fringe benefits like a membership to the gym that costs $500 a year and all the Roca Cola I can drink, although I cant really drink a whole lotI figure $40 worth this year.

As part of my manager duties, I get to decide on certain things like contracts for the company. My good buddy, Eddie, runs a bottling company. I made sure that he won the bottling contract for Roca Cola for this year (even though his contract wasnt quite the best). Eddie bought me a Corvette this year for being such a good friend. The Corvette cost $70,000, and Im sure he bought it for me out of the goodness of his heart. What a great guy!

Heres a bit of good luck for the year. Upon leaving my office one day, I found $9,000 lying in the street! Well, one persons bad luck is my good luck, right?

I like to gamble a lot. I won a $30,000 poker tournament in Las Vegas this year. I also won about $5,400 over the year playing the guys at our Friday night poker game. Can you believe that I didnt lose anything this year?

Speaking of the guys, one of them hit me with his car as we were leaving the game one night. He must have been pretty ticked that he lost! I broke my right leg and my left arm. I sued the guy and got $15,000 for my medical expenses and$4,000 to pay my psychotherapist for the emotional problems I had relating to the injuries (I got really depressed!), and I won $14,000 in punitive damages. Thatll teach him that hes not so tough without his car!

Another bit of bad luck. My uncle Monty died this year. I really liked the guy, but the $300,000 inheritance I received from him made me feel a little better about the loss. I did the smart thing with the money and invested it in stocks and bonds and socked a little into my savings account. As a result, I received $700 in dividends from the stock, $300 in interest from the municipal bonds, and $400 in interest from my savings account.

My ex-wife, Alice, is still paying me alimony. Shes a lawyer who divorced me in 2015 because I was unethical or something like that. Because she was making so much money and I was unemployed at the time, the judge ruled that she had to pay ME alimony. Isnt that something? She sent me $5,000 in alimony payments this year. She still kind of likes me, though. She sent me a check for $600 as a Christmas gift this year. I didnt get her anything, though.

So there you go. Thats this year in a nutshell. Can you figure out my gross income and complete page 1 of Form 1040 (through line 7b) and Schedule 1 for me? And because youre a student, this is free, right? Thanks, I owe you one! Let me know if I can get you a six-pack of Roca Cola or something.

Complete Schedule 1 of Form 1040.

JAAR SCHEDULE 1 OMB No 1545-0074 Form 1040 or 1040-SP Additional Income and Adjustments to Income 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Imamal Revenue Service Go to www.irs.gow Form 1040 for instructions and the latest information. Alamat Sequence No. 01 Na 1040 1040-an You will SHADY SLIM At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial Interest in any virtual currency? Yes No Part 1 Additional Income 1 Taxable refunds, credits, or oftsets of state and local income taxes 1 2a Alimony received 2a b Date of original divorce or separation agreement (see instructions) 3 Business income or loss. Attach Schedule C. 3 4 Other gains or losses). Attach Form 4797 4 5 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 5 6 Farm income or oss). Attach Schedule F 6 7 Unemployment compensation 7 8 Other income. List type and amount B 9 Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7 9 Part II Adjustments to Income 10 Educator expenses 11 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 11 12 Health savings account deduction. Attach Form 8889 12 13 Moving expenses for members of the Armed Forces. Attach Form 3903 13 14 Deductible part of self-employment tax. Attach Schedule SE 14 15 Self-employed SEP, SIMPLE, and qualified plans 15 16 Self-employed health insurance deduction 16 17 Penalty on early withdrawal of savings 17 18a Alimony paid 18a b Recipient's SSN c Date of original divorce or separation agreement (see Instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Tuition and fees. Attach Form 8917 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and on Form 1040 or 1040-SR, line Ba 22 For Paperwork Reduction Act Notice. see your turn instructions Cat No. 7147 1 Form 1049 or 1000-SR) 2019 10