Question

Required information [The following information applies to the questions displayed below) This year Jack intends to file a married-joint return. Jack received $180,600 of salary, and paid $9,250 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $5,050 and $33,000 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. Jacks AGI = $ 140,263

Jacks AGI Calculation

Salary	$180,600
Less Alimony	($33,000)
Less moving expenses deduction	($5,050)
Modified AGI	$142,550
Student Loan Interest Deduction (W.N 1)	($2,288)
AGI	$140,263

W.N 1

Jacks Education interest expense deduction = 2500-[2500*(142550-140000/30000] = $ 2,287.5

b. Jacks AGI = $ 146,329

Jacks AGI Calculation

Salary	$180,600
Partnership Income	$5,600
Less: Alimony	($33,000)
Less: moving expenses deduction	($5,050)
Modified AGI	$148,150
Student Loan Interest Deduction (W.N 2)	($1,821)
AGI	$146,329

W.N 2

Jacks Education interest expense deduction = 2500-(2500*[148150-140000/30000)] = $ 1,821

Extra Information for Reference and understanding

The most student loan interest you can claim as a tax deduction is $2,500 as of the 2019 tax year, and your deduction might be less.

It can be limited by your income. It's reduced for taxpayers with modified adjusted gross incomes (MAGIs) in a certain phase-out range and is eventually eliminated entirely if your MAGI is too high.

Student Loan Interest Deduction Phase-Outs

The phase-out ranges for the 2019 tax year depend on your filing status:

Filing Status	Phase-out Begins	Phase-out Ends
Married Filing Jointly	$140,000	$170,000
Qualifying Widow(er)	$70,000	$85,000
Head of Household	$70,000	$85,000
Single	$70,000	$85,000