Relating to self-employment taxes


Eric, a single taxpayer, will have 2013 wages of $70,000. What is Eric's AGI if he has the following (and only the following) additional items in 2013?

• Itemized deductions of $10,000
• Exemption amount of $3,900
• Alimony of $12,000 received by Eric (from his former spouse, Katherine)
• Business income of $6,000 from Eric's sole proprietorship

Ignore any deduction that may relate to self-employment taxes.

a. $70,000

b. $76,000

c. $82,000

d. $88,000

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Accounting Basics: Relating to self-employment taxes
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