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17 February, 18:13

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 - 250 Her AGI is:

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  1. 17 February, 18:58
    0
    Adjusted gross income = $51000

    Explanation:

    given data

    gross income = $50,000

    Charitable contribution = $2,000

    Taxes and interest = $7,000

    Legal fees = $1,000

    Medical expenses = $3,000

    Penalty = $250

    to find out

    Adjusted gross income AGI

    solution

    we get here Adjusted gross income AGI is express as

    Adjusted gross income = gross income + Taxes and interest - Charitable contribution - Legal fees - Medical expenses ... 1

    put here value we get

    Adjusted gross income = $50,000 + $7,000 - $2,000 - $1,000 - $3,000

    Adjusted gross income = $51000
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