Read the following letter and help Shady Slim with his tax situation. Please assume that his gross income is $172,900 (which consists only of salary) for purposes of this problem. December 31, 2016 To the friendly student tax preparer: Hi, it's Shady Slim again. I just got back from my 55th birthday party, and I'm told that you need some more information from me in order to complete my tax return. I'm an open book! I'll tell you whatever I think you need to know Let me tell you a few more things about my life. As you may recall, lam divorced from my wife, Alice. I know that it's unusual, but I have custody of my son, Shady, Jr. The judge owed me a few favors and l really love the kid. He lives with me ful-time and my wife gets him every other weekend.Ipay the vast majority of my son's expenses. I think Alice should have to pay some child support, but she doesn't have to pay a dime. The judge didn't owe me that much, Iguess. I had to move this year at etting my at Roca Cool We moved onlFebruary 3of this year, and I worked my job at Roca Cola for the rest of the year. st ive in the same state, but I moved 500 miles away from my old house. I left a little bit early to go on a house-hunting trip that cost me a totaTof I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us$65 (I love Super 8!). We spent $35 on meals on the way to our new home. Oh yeah, I took Junior to a movie on the way and that cost $20. Can you believe I'm still paying off my student loans, even after 15 years? paid a total of $900 in interest on my old student loans this year. Remember when told you about that guy that hit me with his car? Ihad a bunch of medical expenses that were not reimbursed by the lawsuit or by my insurance I incurred a total of$20,000 in medical expenses, and I was only reimbursed for S11,000. Good thing can write off medical expenses, right? I contributed a lot of money to charity this year (and have receipt documentation for all contributions) I'm such a nice guy! gave $1,000 in cash to the March of Dimes. I contributed some of my old furniture to the church. It was some good stuff! I contributed a red velvet couch and my old recliner. The furniture is considered vintage and is worth $5,000 today (the appraiser surprised me even though only paid $1,000 for it back in the day. When I contributed the furniture, the pastor said he didn't like the fabric and was going to sell the furniture to pay for some more pews in the church. oh well, some people just have no taste, right? Roca Cola had a charity drive for the United Way this year and Icontributed $90 Turns out, I don't even miss it, because Roca Cola takes it right off my paycheck every month $15 a month starting in July. My pay stub verifies that I contributed the $90 to the United way. oh, one other bit of charity from me this year. An old buddy of mine was down on his luck. He lost his job and his house. Igave him $500 to help him out. paid a lot of money in interest this year. Ipaid a total of $950 in personal credit card interest. Ialso paid $13,000 in interest on my home mortgage I also paid $2,000 in real estate taxes for my new house
