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GROSS INCOME Salaries 9 5 , 0 0 0 Rent income 5 , 0 0 0 TOTAL 1 0 0 , 0 0 0 ABOVE
GROSS INCOME Salaries Rent income TOTAL ABOVE THE LINE DEDUCTIONS Interest paid on Edu. Loan. Retirement expenses Apartment Expenses TOTAL ADJUSTED GROSS INCOME STANDARD DEDUCTION OR ITEMIZED DEDUCTIONS? cAi Standard Deduction amount is $ in this case If the Itemized Deductions exceed this amount, taxpayers should itemize But note a: miscellaneous itemized deductions are disallowed through ; So we have to categorize the itemized deductions! REGULAR ITEMIZED DEDUCTIONS taken in full; identified in b Medical Exp. Mortgage Int. Charity Contrib. Since the allowable itemized deductions $ do not exceed the standard deduction $ A&B will probably elect the standard deduction. Putting it all together: Gross Income Above the line AGI Standard Deduction TAXABLE INCOME
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