USA - Individual Tax Research Project

David is a 63 year old single man and provided the following income and expense information for 2020:

Wages from employer $38,500

Interest income from 1^st Natl Bank 4,500

Interest from City of Chicago bonds 1,500

Interest from Corporate bonds 1,000

Nonqualifying Dividends from STC stock 2,000

Collections from annuity contract (see below)5,100

Net business income on handyman business 2,200

Alimony paid 1,000

State income tax paid 300

The cost of the annuity was $61,200 and David expected to receive 240 monthly payments of $425 each. Calculate the taxable income for David for 2020.