Final answer:
Sammy has a gross income that includes a $90,000 salary and $10,000 in alimony, with $8,000 in medical expenses. To calculate the net annual income, one must add the sources of income, apply standard deduction (and consider medical expenses deduction), and subtract taxes, social security, and Medicare. The resulting net annual income divided by 12 gives the monthly income.
Step-by-step explanation:
Based on the information provided, Sammy has a salary from a job totaling $90,000, alimony received which amounts to $10,000, and medical expenses which stand at $8,000. To calculate Sammy's net annual income, we need to consider his gross income, which includes his salary and alimony, and then subtract any deductions such as taxes, social security, and Medicare contributions. However, because the medical expenses may also be deductible, these will influence the determination of his adjusted gross income.
While the question does not provide the specific rates for taxes, social security, and Medicare, it lays out how we would typically approach this calculation:
- Determine adjusted gross income by adding all sources of income: Salary + Alimony
- Apply the standard deduction (and possibly additional deductions for medical expenses if they exceed a certain threshold)
- Calculate the taxes, social security, and Medicare deductions based on the adjusted gross income
The Net annual income is then the adjusted gross income minus these deductions. Sammy's monthly income would be the net annual income divided by 12.