Lou had the following transactions for 2020:
|
Salary |
|
$ 80,000 |
|
Alimony paid (divorce final in 2016) |
|
(4,000) |
|
Recovery from car accident— |
|
|
|
Personal injury damages |
$40,000 |
|
|
Punitive damages |
70,000 |
110,000 |
|
Gift from parents |
|
20,000 |
|
Property sales— |
|
|
|
Loss on sale of boat (used for pleasure and owned 4 years) |
($4,000) |
|
|
Gain on sale of GE stock (held for 10 months as an investment) |
4,000 |
(–0–) |
|
|
|
|
What is Maya’s AGI for 2020?
AGI or adjusted gross income is a income which is calculated from the gross income. On calculation of AGI, the amount of taxable income can be arrived.
Items included in calculating the gross income is nothing but the sum of various items like wages, dividends, capital gains, royalties, interest income, alimony, rental income. After the sum of all these amounts various deductions are made to arrive at the AGI. Some of these deductions can include:
Retirement plan contributions, loss from sale of any property, HSA(health care savings deductions), alimony paid, school tuition fees, half of self employment tax etc.
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