What is Taxable? Learning Objectives: sort out taxableo ntaxable income streams and calculate taxable income We return to Emerson and Nevada who are betwe make ends meet, they are working a number of part-time jobs and have en career jobs. They are now married, and in order to some additional income streams. They have both sat down and written out a general picture of everything they an ticipate needing for tax season Emerson is still working full-time as a manager and makes around $3,105 per month without taxes being withheld. To feed his poker habit he has spent $600 over the past year and won a total of $1,200. He also bought around $500 in lottery tickets and won $100 early in the year. His student loans amount to $35,000, with a monthly payment of $277; he also got an email that he paid $2.170 in interest over the past year. Nevada is stil working at her part-time job as an antique appraiser (10 hours per week at about $30 per hour after taxes; working roughly 42 weeks last year). The business related mileage on her truck totals 6,800 miles. Many of her customers tipped her so she saw $5,780 in tips. She also profited $1,600 through the selling of a portion of her coin collection due to higher prices of precious metals. Her savings account has earned $1.50, and her investments have paid her $576. Last year she graduated from her undergraduate program, and she paid $7,900 in tuition (she also qualified for the American Opportunity Credit). She is looking at going to graduate school for her masters soon. We will ignore the possible presence of capital gains so you will group all the above forms of taxable income together along with any appropriate deductions to find this couple's taxable income.Ultimately. tax laws change every year so the key here is to get a general idea on how to treat these items. When it comes time to do their taxes, Nevada and Emerson should consult a tax professional