Tammy teaches elementary school history for the Metro School District. In 2014 she has incurred the following expenses associated with her job:
Noncredit correspondence course on history ........................ $ 900
Teaching cases for classroom use ...................................... 1,800
Tuition for university graduate course in physics .................... 1,200
Transportation between school and home ............................. 750
Photocopying class materials ........................................... 100
Transportation from school to extracurricular activities ............ 110
Cost of lunches eaten during study halls .............................. 540
Tammy's base salary is $45,000, and she receives a $200 salary supplement to help her cover expenses associated with her school extracurricular activities.
a. Identify the amount and type (for AGI or from AGI) of deductible expenses (assume the 2013 rules apply for purposes of the qualified education expense deduction and the educator expense deduction).
b. Calculate Tammy's AGI and taxable income for 2014 assuming she files single with one personal exemption (assume the 2013 rules apply for purposes of the qualified education expense deduction and the educator expense deduction).