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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 had $3,000 of Schedule C business expenses and $1,500 of hobby expenses | $ (3,000) | Hobby expenses are not deductible | |||
To my friendly student tax preparer: | |||||
Hello, my name is Shady Slim. I understand you are going to help me figure out my gross income for the year ... whatever that means (USE 2020 RULES and assume Shady files as a single person). Its been a busy year and Im a busy man, so let me give you the lowdown on my life and you can do your thing. | |||||
Taxable Income | FOR AGI Deductions | FROM AGI Deductions | Explanation for anything excluded | ||
a. | I was unemployed at the beginning of the year and got $5,000 in unemployment compensation. I later got a job as a manager for Roca Cola. I earned $61,500 in base salary this year. My boss gave me a $2,500 Christmas bonus check on December 22. I decided to hold on to that check and not cash it until next year, so I wont have to pay taxes on it this year. Pretty smart, huh? My jobs pretty cool. I get a lot of fringe benefits like a membership to the gym that costs $1,800 a year and all the Roca Cola I can drink, although I cant really drink a whole lotI figure $40 worth this year. | ||||
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