Question

Jessica is a U.S. Army Reservist and in 2019 traveled 130 miles each way to serve duty at a local military installation. She was required to report four times in 2019. Her normal route from home to the base included a $1.75 toll each way. Jessica's for AGI deduction for these costs is:________.

a. $0.
b. $14.00.
c. $122.00.
d. $566.80.
e. $580.80.

Answer 1

Jessica's for AGI deduction for these costs is:

b. $14.00.

Step-by-step explanation:

The aggregate gross income (AGI) can be defined as the total amount of income that an individual earns and is used in calculating the amount of income tax that an individual is liable to pay. The AGI can be expressed as follows;

AGI=T×N×W

where;

AGI=aggregate gross income

T=toll amount per way

N=number of times she reported

W=number of way

In our case;

AGI=unknown, to be determined

T=$1.75

N=4

W=2

Replacing;

AGI=(1.75×4×2)=$14.00

Jessica's for AGI deduction for these costs is:

b. $14.00.