Problem
This year Diane intends to file a married-joint return. Diane received $177,900 of salary and paid $9,200 of interest on loans used to pay qualified tuition costs for her dependent daughter, Deb. This year Diane has also paid moving expenses of $5,350 and $28,500 of alimony to her ex-spouse, Jack, who she divorced in 2012.
1) What is Diane's adjusted gross income?
2) Suppose that Diane also reported income of $10,750 from a half share of profits from a partnership. Disregard any potential self-employment taxes on this income. What AGI would Diane report under these circumstances?