Please calculate AGI from the given information below. During 2021 , Jay(J) and Kay (K) Demas were
Question:
Please calculate AGI from the given information below.
During 2021, Jay("J") and Kay ("K") Demas were 42 and 44 years old and married to each other with no children. They currently live at 111 Twin Birds Lane in Stillwater, OK 74075. Their SSN's are as follows: 111-22-3333 and 222-33-4444.
J is a 50% owner of the J&W Consultants partnership at 345 Narrow Lane in Stillwater, OK 74077. J&W's EIN is 44-1818181. J&W is considered a service business. J received a K-1 with the following information for the 2021 tax year.
| Ordinary Income | 75,000 |
| Income subject to Self-employment Tax | 75,000 |
| Charitable Contributions | 500 |
| Non-deductible Meals & Entertainment | 2,300 |
| Interest Income | 1,100 |
| Qualified Dividends | 230 |
K worked as physician's assistant for a local health group. She received a W-2 from the group which showed taxable wages of $90,000. In addition, the W-2 showed that her withholdings were $12,000 for federal taxes and $4,000 for state tax purposes. K contributed $6,000 to her 401(k) plan and the group made a $2,000 matching contribution to the 401(k).
J & K own joint investment accounts. During the year, these investments generated $5,000 of interest income which includes $2,000 from municipal bonds. They received $3,200 of dividend income which includes $2,400 of qualified dividends. On July 31st of this year, they sold IBM stock for $7,800 purchased for $10,000 on March 4th of this year. Fees related to this sale were $100. On August 7th this year, they sold GE stock that was purchased for $10,000 on January 10, 2000 for $16,700. Again, incurring a $100 fee for the sale. In addition, J & K have a short term capital loss carryforward from prior years of $300.
J & K own a home for which they paid $12,000 of mortgage interest and $5,000 of property taxes. They paid property insurance of $1,200 related to this home. They also made $700 of contributions to qualifying charities.
J & K had gambling winnings of $1,400 and losses of $4,200 this year. K also inherited $45,000 from her deceased uncle this year.
J & K made estimated federal tax payments of $5,000 each quarter. They also made several tax payments to the state of Oklahoma during this tax year totaling $5,000.
J and K would like to contribute the maximum amount allowable to each of their traditional IRA's.
Expert Answer:
