Question

This year Evan graduated from college and took a job as a deliveryman in the city, Evan was paid a salary of $75,600 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: Cost of moving his possessions to the city (125 miles away) Interest paid on accumulated student loans Cost of purchasing a delivery uniform Contribution to State University deliveryman program 1,510 Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan's student loans this year. Evan's AGI Taxable income

Answer 1

Solution;

Calculate Evan's AGI and Taxable income

Particulars	Amount
Salary income	$75,600
Part time income	$700
Total income	$76,300
Less: Moving expense	$(1,200)
Student loan(limited to $2,000)	$(2,000)
Adjusted gross income(AGI)	$76,000
Less: standard deduction	$(6,300)
Personal exemption	$(4,050)
Taxable income	$65,650

Hence, Evan's AGL and taxable income is $76,000 and $65,650 respectively