scenario 1

This year Diane intends to file a married-joint return. Diane received $187,700 of salary and paid $7,200 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $5,250 and $28,400 of alimony to her ex-spouse, Jack, who she divorced in 2013.

Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.

a. What is Diane's adjusted gross income?

b. Suppose that Diane also reported income of $9,700 from a half share of profits from a partnership. Disregard any potential self-employment taxes on this income. What AGI would Diane report under these circumstances?

scenario 2

Simpson, age 45, is a single individual who is employed full time by Duff Corporation. This year Simpson reports AGI of $61,600 and has incurred the following medical expenses:

Dentist charges	$ 1,560
Physician charges	1,980
Optical charges	815
Cost of eyeglasses	430
Hospital charges	4,200
Prescription drugs	610
Over-the-counter drugs	720
Medical insurance premiums (not through an exchange)	985

a. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

medical expense

b. Suppose that Simpson was reimbursed for $450 of the physician's charges and $3,300 for the hospital costs. Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

medical expense