Question

Using the tax formula calculate the taxpayer's AGI. (5 POINTS) Wages $80,000 Self-employed business income $ 25,000 Real estate taxes paid (residence) $ 6,500 Parking ticket paid for business $ 200 12 self-employment tax $ 1,300 Gambling income $5,000 Scratch off lotto ticket winning $ 100 Cash option taken from cafeteria plan $ 1,000 Gambling losses $ 7,000 Hobby income $2,500 Supplies for self-employed business $ 700 Office expense for self-employed business $ 8,000 Sub-contractors for self-employed business. $10,000

Answer 1

Particulars	Amount($)
wages	80000
Add: self employed business income	25000
Add: Gambling Income	5000
Add: Hobby Income	2500
Add: Scratch off lotto ticket winning	100
Add: Cash Option taken from cafeteria plan	1000
Less: Parking ticket paid for business	200
Less:1/2 self employemnt tax	1300
Less: Supplies for self employed business	700
Less: Office Expenses for self employed business	8000
Less: Sub contractors fpr self employed business	10000
Less:Gambling lsoses	7000
Total Taxpayer AGI	86400