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Read through the following items and determine what the taxable income is. For any amount that is not taxable or tax deductible explain why it
Read through the following items and determine what the taxable income is. For any amount that is not taxable or tax deductible explain why it is not. Enter your answers in the shaded boxes. Examples follow: | Taxable Income | FOR AGI Deductions | FROM AGI Deductions | Explanation for anything excluded |
Example: Jesse earned $100 of savings account interest and $500 from child support. | $ 100 | $500 child support is excluded from income | ||
Example: Jesse had $100 of credit card interest and $1,000 of mortgage interest | $ (1,000) | $100 credit card interest is not deductible | ||
Example: Jessie made a $750 contribution to a regular IRA and $250 to a Roth IRA | $ (750) | Roth contributions are not deductible | ||
Taxable Income | FOR AGI Deductions | FROM AGI Deductions | Explanation for anything excluded |
h. | Another bit of bad luck. My uncle Monty died this year. I really liked the guy, but the $500,000 inheritance I received from him made me feel a little better about the loss. I did the smart thing with the money and invested it in stocks and bonds and socked a little into my savings account. As a result, I received $1725 in dividends from the stock, $725 in interest from the municipal bonds, and $625 in interest from my savings account. | ||||
i. | My ex-wife, Alice, is still paying me alimony. Shes a lawyer who divorced me in 2015 because I was unethical or something like that. Because she was making so much money and I was unemployed at the time, the judge ruled that she had to pay ME alimony. Isnt that something? She sent me $5,500 in alimony payments this year. She still kind of likes me, though. She sent me a check for $625 as a Christmas gift this year. I didnt get her anything, though. My OTHER ex-wife, Gloria, had a better lawyer. We were divorced in 2018 and I paid her $2,400 in child support and $3,600 in alimony!! I'm using her lawyer next time! | ||||
j. | I had to move this year after getting my job at Roca Cola. I moved on February 3 of this year, and I worked my job at Roca Cola for the rest of the year. I still live in the same state, but I moved 500 miles away from my old house. I hired a moving company to move my stuff at a cost of $2,300, and I drove in my car. I got a hotel room along the way that cost us $65 (I love Super 8!). | ||||
k. | Can you believe Im still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year. | ||||
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