Question

This year Jack intends to file a married-joint return. Jack received $172,500 of salary, and paid $5,000 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,300 and $28,300 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?

Answer 1

a. Calculation of Jack's adjusted gross income:

  

Particulars	Amount ($)	Amount ($)
Salary	172,500
Gross income		172,500
Less: Adjustments
Interest on loans	5,000
Moving expenses	4,300
Alimony to ex-wife	28,300	37,600
Adjusted Gross Income		134,900

Note: The interest on student loan, moving expenses and Alimony to former spouse are adjustable deductions.

Answer 2

Calculate AGI by:

Salary minus alimony = MAGI

MAGI minus loan interest deduction = AGI