Question

Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He Is self-employed and operates his own computer repalr store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Inc. (ST), where she worked for the remalinder of the year. This year, the Johnsons recelved $268,000 of gross Income a. Expenses assoclated with Jeremy's store include $43,250 In salary (and employment taxes) to employees, $48,900 of supplies, and $19,300 In rent and other adminlstrative expenses. b. As a salesperson, Alyssa Incurred $2,130 In travel expenses related to her employment that were not relmbursed by her employer. C. The Johnsons own a plece of raw land held as an Investment. They pald $630 of real property taxes on the property and they Incurred $265 of expenses Iin travel costs to see the property and to evaluate other slmlar potentlal Investment properties. d. The Johnsons own a rental home. They Incurred $8,630 of expenses assoclated with the property. e. Jeremy pald $4,630 for health Insurance coverage for himself (not through an exchange). Alyssa was covered by health plans provided by her employer, but Jeremy Is not ellgible for the plan until next year. f Jeremy pald $2,630 In self-employment taxes ($1,315 represents the employer portion of the self-employment taxes). g. Jeremy pald $5,260 In allmony and $3,195 In chld support from his prior marriage (divorced In 2010). h. The Johnsons donated $2,130 to thelr favorlte charit)y. Determine the Johnson's AGI given the above Information: nson's AGI

Answer 1

Calculation of Johnson's AGI

Gross income $268,000

less: deductions

a) self-employment taxes - $ 1,315

b) store rent - $ 19,300

c) alimony paid - $ 5,260

d) child support - $ 3,195

e) donation - $ 2,130

f) real property tax - $ 630

after doing above calculations we get,

= 236,170