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?