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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 | ||
g. | My medical expenses were a lot higher than what I got though. Aside from things related to the car accident, I paid $30,000 in for a required surgery (no I won't tell you what for!), $5,000 in dental expenses, and $7,500 for an acupuncturist! Good thing I can write off medical expenses, right? | ||||
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