Question
Matthew is not married and supports a 12 year old child who lives with Matthew and has gross income of $2,650 (the child's gross income).
Matthew is not married and supports a 12 year old child who lives with Matthew and has gross income of $2,650 (the child's gross income). Matthew works as a self-employed planner and earned commissions and fees of $134,000 during 2019. Matthews other information follows:
Matthews business expenses $14,900
Contribution to solo(k) retirement plan 4,500
Loss on sale of Alphatech stock held 2 years -3,700
Payment for self-employed persons medical insrutance 8,000
Mortgage interest on primary residence 12,950
State and local property tax on residence 3,350
Property tax included in personal auto registration 160
State sales taxes paid 370
State income taxes paid 2,800
Charitable contributions of cash 1,950
Political contributions 550
Interest income $3,300
Qualifying dividends $2,200
All information is for 2019.
Calculate Matthews adjusted gross income and taxable income. Show your work!
AGI = $____________ Taxable Income = $____________
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