Question: This year Evan graduated from college & took a job as a deliveryman in the city. Evan was paid a salary of $68,500 & he received $700 in hourly pay for part-time work over the weekends. Evan summarized this expenses below: Moving expenses 1200, Interest paid on accumulated student loans 2800, cost of purchasing a delivery uniform 1400, contributions to State University deliveryman program 1300.
Calculate Evan's AGI & taxable income if he files single with 1 personal exemption. Assume that interest payments are initially required on the student loans this year. His AGI is $66,000; Taxable income is $55,600 computed as follows.
Salary 68500 + Part time hourly pay 700= 69200, less moving expenses 1200=Modified AGI $68,000, less deductions for student loan interest is 2000; AGI is now $66,000. The standard deduction is 6300 with a personal exemption of 4050. Taxable income is $55,650