Marsha is single, had gross income of $50,000, and incurred the following expenses:________. Charitable contribution $2,000 Taxes and interest on home 7,000 Legal fees incurred in a tax dispute 1,000 Medical expenses 3,000 Penalty on early withdrawal of savings 250Her AGI is:_______. a. $39,750 b. $40,000 c. $40,750. d. $49,750 e. None of these choices are correct

Respuesta :

Marsha is single, had gross income of $50,000, and incurred the following expenses: Charitable contribution $2,000 Taxes and interest on home 7,000 Legal fees incurred in a tax dispute 1,000 Medical expenses 3,000 Penalty on early withdrawal of savings 250Her AGI is:

d. $49,750

Explanation:

  • Marsha is single, had gross income of $50,000, and incurred the following expenses: Charitable contribution $2,000 Taxes and interest on home 7,000 Legal fees incurred in a tax dispute 1,000 Medical expenses 3,000 Penalty on early withdrawal of savings 250Her AGI is:
  • d. $49,750
  • The Interest which is used to buy or carry tax exempt securities is not deductible.
  • Only  20% of the adjusted gross income limitation is applied to certain contributions made to private foundations.
  • Married couple must be,filing a separate return, and their spouse is itemizing.