Question
In each independent item below, assume that a single taxpayer earned $30,000 in W-2 income. Show the appropriate amount that should appear under each heading.
In each independent item below, assume that a single taxpayer earned $30,000 in W-2 income. Show the appropriate amount that should appear under each heading. More than one option may be selected Item Amount Include in Gross Income Exclude form Gross Income Deduction for AGI Deduction from AGI Appears on Schedule A Appears on Schedule B Appears on Schedule D Interest from Savings Account $60 Dividends from stock investment $500 Bad Debt from an Unpaid Loan $6,000 Donation of automobile to charity $600 Cash donation to church $500 Cash donation to charity $3,000 Student loan interest $1,200 Alimony $12,000 Loss on the sale of stock purchased 5 years ago $900 Gain of the sale of stock purchased 6 years ago $1,200 Traditional IRA contributions $4,500 Net loss on real estate rental properties $6,000 Home business (sole proprietorship) profit $12,000 Moving expenses $2,500
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