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.)

Answer 1

Ans :

Computation of Jack's Adjusted Gross Income (AGI)

	Amount ($)
Salaries and Gross Income	172500
Less : Moving expenses	(4300)
Alimony	(28300)
Modified AGI	139900
Student loan interest deduction (Note)	(2500)
Adjusted Gross Income(AGI)	137400

Note - Since , the Modified Adjusted Income is less than $170000 so, the deduction will be $2500 for married-joint return .