Question

Angela is single, had gross income of 38,000, and incurred the following expenses:

Charitable contributioN₂,500
Taxes and interest on home 9,000
Legal fees incurred in a tax dispute1,000
Medical expenses 4,000
Penalty on early withdrawal of savings200

Her AGI is:
1) $28,800
2) $32,800
3) $35,500
4) $21,300
5) $37,800

Answer 1

Based on the information provided and standard deduction assumptions, Angela's Adjusted Gross Income (AGI) would be $37,800 after deducting the penalty on the early withdrawal of savings. Other expenses may not be directly subtracted without further information.

Step-by-step explanation:

The question is related to calculating the Adjusted Gross Income (AGI) for an individual based on the details provided. The gross income of the individual, in this case Angela, is $38,000. The stated deductions that could be subtracted from the gross income are: the charitable contributions of $2,500, taxes and interest on home of $9,000, legal fees incurred in a tax dispute of $1,000, medical expenses of $4,000, and a penalty on early withdrawal of savings of $200.

To find the AGI, we would need more information such as whether Angela is eligible to deduct the medical expenses which must exceed 7.5% of AGI, the taxes and interest on home, and legal fees as these are not typically deductible for the AGI calculation. For the purpose of this question and assuming standard deductions apply without itemization, only the penalty on early withdrawal of savings ($200) is directly deductible from the gross income. Therefore, the other deductions may not be directly subtracted.

If we deduct only the penalty on the early withdrawal of savings from Angela's gross income, we would have an AGI of $37,800 ($38,000 - $200 = $37,800). It's important to note that this may not be the exact AGI if additional details reveal eligibility for other deductions.

Answer 2

Based on the information provided and standard deduction assumptions, Angela's Adjusted Gross Income (AGI) would be $37,800 after deducting the penalty on the early withdrawal of savings. Other expenses may not be directly subtracted without further information.

Step-by-step explanation:

The question is related to calculating the Adjusted Gross Income (AGI) for an individual based on the details provided. The gross income of the individual, in this case Angela, is $38,000. The stated deductions that could be subtracted from the gross income are: the charitable contributions of $2,500, taxes and interest on home of $9,000, legal fees incurred in a tax dispute of $1,000, medical expenses of $4,000, and a penalty on early withdrawal of savings of $200. To find the AGI, we would need more information such as whether Angela is eligible to deduct the medical expenses which must exceed 7.5% of AGI, the taxes and interest on home, and legal fees as these are not typically deductible for the AGI calculation. For the purpose of this question and assuming standard deductions apply without itemization, only the penalty on early withdrawal of savings ($200) is directly deductible from the gross income. Therefore, the other deductions may not be directly subtracted.

If we deduct only the penalty on the early withdrawal of savings from Angela's gross income, we would have an AGI of $37,800 ($38,000 - $200 = $37,800). It's important to note that this may not be the exact AGI if additional details reveal eligibility for other deductions.