Johnson's AGI Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer parts store. For the first two months of the year, Alyssa work for Staples Inc. as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remainder of the year. This year, the Johnsons' received $255,000 of gross income and did not itemize any deductions for the year. Determine the Johnsons' AGI given the following information. Use the appropriate tax form(s) for tax year 2021. Description Amount Explanation Gross income a Ordinary and necessary business expenses b Unreimbursed employment expenses c Real property taxes and investment expenses. d Rental expenses e Moving expenses f Self-employed health insurance g Self-employment taxes d a. Expenses associated with Jeremy's store include $40,000 in salary and employment taxes) to employees, $45,000 of cost of goods sold, and $18,000 in rent and other administrative expenses... b. As a salesperson, Alyssa incurred $2,000 in travel expenses related to her employment that were not reimbursed by her employer. The Johnsons own a piece f investment real estate, They paid $500 of real property taxes on the property and they incurred $200 of expenses travel costs to see the property and to evaluate other similar potential investment properties. The Johnsons own a rental home. They incurred $8,500 of expenses associated with the property The Johnsons' home was only 5 miles from the Staples store where Alyssa worked in January and February, The ST store was 60 miles from their home so the Johnsons decided to move to make the commute easier for Alyssa. The Johnsons' new home was only 10 miles from the ST store. However, it was 50 miles to their new residence. They stopped along the way for lunch and spent $60 eating at Denny's, None of the moving expenses were reimbursed by ST. f. Jeremy paid $4,500 for health insurance coverage for himself. Alyssa was covered by health plans provided by her employer, but Jeremy was not eligible for the plan until next year. g. Jeremy paid $2,500 in self-employment taxes ($1,250 represent the employee portion of the self-employment taxes). h Jeremy paid $5,000 in alimony and $3,000 in child support from his prior marriage. Alyssa paid $3,000 of tuition and fees to attend night classes at a local university. The Johnsons would like to deduct as much of this expenditure as possible rather than claim a credit The Johnsons donated $2,000 to their favorite charity e 1. h Alimony i Education expenses Charitable contributions Total for AGI deductions AGI
