Taxable income FOR AGI Deductions FROM AGI Deductions 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: Example: Jesse earned $100 of savings account interest and $500 from child support. Example: Jesse had $100 of credit card interest and $1,000 of mortgage interest Example: Jessie had $3,000 of Schedule C business expenses and $1,500 of hobby expenses $ 100 Explanation for anything excluded $500 child support is excluded from income $100 credit card interest is not deductible Hobby expenses are not deductible $ (1,000) $ (3,000) 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). It's been a busy year and I'm a busy man, so let me give you the lowdown on my life and you can do your thing. FROM AGI Taxable income FOR AGI Deductions Explanation for anything excluded Deductions p. A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. q. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school. I did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me. Taxable income FOR AGI Deductions FROM AGI Deductions 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: Example: Jesse earned $100 of savings account interest and $500 from child support. Example: Jesse had $100 of credit card interest and $1,000 of mortgage interest Example: Jessie had $3,000 of Schedule C business expenses and $1,500 of hobby expenses $ 100 Explanation for anything excluded $500 child support is excluded from income $100 credit card interest is not deductible Hobby expenses are not deductible $ (1,000) $ (3,000) 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). It's been a busy year and I'm a busy man, so let me give you the lowdown on my life and you can do your thing. FROM AGI Taxable income FOR AGI Deductions Explanation for anything excluded Deductions p. A few other things I want to tell you about this year. Someone broke into my house and stole my kid's brand new bicycle and my set of golf clubs. The total loss from theft was $900. I paid $125 in union dues this year. I had to pay $1,200 for new suits for my job. Roca Cola requires its managers to wear suits every day on the job. I spent a total of $1,300 to pay for gas to commute to my job this year. q. Oh, this is pretty cool. I've always wanted to be a firefighter. I spent $1,400 in tuition to go to the local firefighter's school. I did this because someone told me that I can deduct the tuition as an itemized deduction, so the money would be coming back to me
