Question

2018 tax year Adam received the following items this year: Interest on New York City School...

2018 tax year

Adam received the following items this year:

Interest on New York City School bonds $ 1,600
Gift from grandparents 5,000
Jackpot from State lottery 50,000
Gambling winnings 3,000

Compute Adam’s AGI.

a. $59,600
b. $58,000
c. $53,000
d. $50,000

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Answer #1

1.Bonds issued by New York State and its Public Authorities are debt obligations, the proceeds of which are used to build schools, highways, hospitals, and many other projects for the public.Generally, interest earned on New York State Bonds is exempt from federal, state, and local income taxes.

2.gift givers must pay taxes on some gifts. Luckily, recipients never pay a gift tax.

Thereore, Adam's Annual Gross Income is, Option C $ 53,000

Jackpot from State lottery 50,000

+ Gambling winnings 3,000

Total AGI = 53,000

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