FOR AGI Deductions FROM AGI Deductions Read through the following items and determine what the taxable income is. For any amount that is not taxable or tax deductible Taxable explain why it is not. Enter your answers in the shaded boxes. Examples follow: Income Example: Jesse earned $100 of savings account interest and $500 from child support. $ Example: Jesse had $100 of credit card interest and $1,000 of mortgage interest Example: Jessie made a $750 contribution to a regular IRA and $250 to a Roth IRA 100 Explanation for anything excluded $500 child support is excluded from income $100 credit card interest is not deductible Roth contributions are not deductible $ (1,000) $ (750) Taxable Income FOR AGI Deductions FROM AGI Deductions Explanation for anything excluded d. I like to gamble a lot. I won a $25,000 poker tournament in Las Vegas this year. I also won about $7,500 over the year playing the guys at our Friday night poker game. e. Of course, I played another poker tournament in Las Vegas and lost $15,000! No one can have all the luck! f. 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 $18,000 for my medical expenses and $5,000 to pay my psychotherapist for the emotional problems I had relating to the injuries (I got really depressed!), and I won $14,500 in punitive damages. That'll teach him that he's not so tough without his car! My medical expenses were a lot higher than what I got though. During the year, I incurred a total of $30,000 in medical expenses, $5,000 in dental expenses, and $7,500 for my shrink.... errr... psychotherapist - what a scam! Good thing I can write off medical expenses, right? FOR AGI Deductions FROM AGI Deductions Read through the following items and determine what the taxable income is. For any amount that is not taxable or tax deductible Taxable explain why it is not. Enter your answers in the shaded boxes. Examples follow: Income Example: Jesse earned $100 of savings account interest and $500 from child support. $ Example: Jesse had $100 of credit card interest and $1,000 of mortgage interest Example: Jessie made a $750 contribution to a regular IRA and $250 to a Roth IRA 100 Explanation for anything excluded $500 child support is excluded from income $100 credit card interest is not deductible Roth contributions are not deductible $ (1,000) $ (750) Taxable Income FOR AGI Deductions FROM AGI Deductions Explanation for anything excluded d. I like to gamble a lot. I won a $25,000 poker tournament in Las Vegas this year. I also won about $7,500 over the year playing the guys at our Friday night poker game. e. Of course, I played another poker tournament in Las Vegas and lost $15,000! No one can have all the luck! f. 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 $18,000 for my medical expenses and $5,000 to pay my psychotherapist for the emotional problems I had relating to the injuries (I got really depressed!), and I won $14,500 in punitive damages. That'll teach him that he's not so tough without his car! My medical expenses were a lot higher than what I got though. During the year, I incurred a total of $30,000 in medical expenses, $5,000 in dental expenses, and $7,500 for my shrink.... errr... psychotherapist - what a scam! Good thing I can write off medical expenses, right