Asked Nov 6, 2019



This year Jack intends to file a married-joint return. Jack received $175,000 of salary, and paid $7,250 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,450 and $30,300 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?


Expert Answer

Step 1

Compute modified adjusted gross income (MAGI) of person J as shown below:


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MAGI SalaryAlimony paid -Deduction for moving expenses $175,000 -$30,300-$4,450 $140, 250

Step 2

Now, compute the Student loan inte...


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MAG-Phase aut Begiming Phase out Ending-Phase aut Begiming Student loan interest deduction-Interest Limit Interest Limit x $140,250-$135,000 $165000-$135000 $2500$2500x -$2500-$438 $2 062


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