The Sandler family consists of two married adults, and two teenagers. Mr. and Mr
ID: 2384285 • Letter: T
Question
The Sandler family consists of two married adults, and two teenagers. Mr. and Mrs. Sandler will file their IRS return as a joint return. Their financial
data is as follows:
Gross income:Samuel (father) $42,000; Jerri (mother) $40,000
Life insurance proceeds from a deceased aunt: $10,000
Interest from savings: $140
Alimony from Jerri's ex-husband: $4380
Child-support payments received from Jerrii's ex-husband: $14,200
Cash as a Christmas gift from Samuel's parents: $500
Tuition/books scholarship Jerri received to go to college part time last year: $1600
_____________________________________________
Determine the total reportable gross income:
This is the income they earned and received during the year, not just their salaries. Check pages 109-113 and make sure you get the right items to include as income.
What is the total reportable gross income from all sources? -
After they put $5600 into qualified retirement plan accounts last year, what is their adjusted gross income?
Explanation / Answer
Computation total Gross income Amount($)
Gross income (40000+42000) 82000
less : payment of LIC (10000)
Add : interest from savings 140
Add : alimony from jerri ex husband 4380
Add : payments received from jerri exhusband 14200
Add : gift from samuels parents 500
Add : amounnt receved to jerri from college 1600
total gross salary 92820
Add : retirement plan (5600)
Adjusted gross income 87220
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