Question

Required information [The following information applies to the questions displayed below.] This year Jack intends to file a married-joint return. Jack received $175,000 of salary, and paid $7,250 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,450 and $30,300 of alimony to his ex-wife, Diane, who divorced him in 2012. (Round your intermediate calculations and final answer to the nearest whole dollar amount.) a. What is Jack's adjusted gross income? Jack's AGI

Answer 1

A) Calculation for Jack's AGI

Salary Income		$ 175,000
Less: Above the line deduction
A: Interest on loans to pay qualified tuition costs for his dependent daughter ( subject to maximum deduction and MAGI limit. Maximum limit of deduction is $ 2,500 but if MAGI is more than $ 170,000, then no deduction allowed .	nil
B:Moving expenses ( from 2018, it only deducted for active duty military moving due to military orders)	nil
C: Alimony paid to ex wife	$ 30,300
Total above the line deduction		$ 30,300
Jacks's AGI =		$ 147,700

C)

Deductible for AGI	$ 0 + 0%
Deductible from AGI	$ 4,110 + 0%
Not Deductible	$ 0 + 0%