David is a 63 year old single man and provided the following income and expense information for 2020:

Wages from employer                                 $38,500

Interest income from 1^st Nat’l Bank               4,500

Interest from City of Chicago bonds             1,500

Interest from Corporate bonds                        1,000

Nonqualifying Dividends from STC stock    2,000

Collections from annuity contract (see below)5,100

Net business income on handyman business 2,200  

Alimony paid                                                  1,000

State income tax paid                                     300

The cost of the annuity was $61,200 and David expected to receive 240 monthly payments of $425 each. Calculate the taxable income for David for 2020.

Answer rating: 100% (QA)

Calculation of taxable income for David for 2020 particulars Amount Notes Wages from employer 38500 ... View the full answer