Question

This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $72,900 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows:

Cost of moving his possessions to the city (125 miles away)	$	1,200
Interest paid on accumulated student loans		2,820
Cost of purchasing a delivery uniform		1,420
Contribution to State University deliveryman program		1,310

Calculate Evan's AGI and taxable income if he files single. Assume that interest payments were initially required on Evan’s student loans this year.

Answer 1

Evan's AGI = $70300

Taxable Income = $58100

TAXABLE INCOME
SALARY	72900
PART TIME HOURLY PAY	700
GROSS INCOME	73600
LESS : MOVING EXPENSES DEDUCTION	1200
MODIFIED AGI (FOR STUDENT INTEREST)	72400
LESS -STUDENT LOAN INTEREST DEDUCTION*	2100
AGI	70300
LESS - STANDARD DEDUCTION	12200
TAXABLE INCOME	58100

* CALCULATION OF STUDENT LOAN INTEREST DEDUCTION (2019):-

= 2500 - [(2500* {(72400-70000) / (85000-70000)}]

=2500 - 400

= $ 2100

kindly give a ?. It helps me. Thanks!!