Evaluate her AGI calculation and make any necessary corrections, if any. Explain your changes, if any, based on the tax law.

 

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During 2021, Julie, age 40, single, had the following transactions: Salary Interest income on GMC bonds Inheritance from uncle Contribution to her traditional IRA Capital gains on sale of stock Capital losses on sale of stock Itemized deductions $70,000 2,000 40,000 5,000 1,000 7,000 20,000 At the end of the year, Julie reviews her financial records to project her adjusted gross income (AGI) to determine if she will qualify for certain tax credit. Based on her calculation, she estimates adjusted gross income (AGI) will be around $81,000. (70,000+ 2,000+ 40,000 - 5000 + 1000 - 7000-20,000). During 2021, Julie, age 40, single, had the following transactions: Salary Interest income on GMC bonds Inheritance from uncle Contribution to her traditional IRA Capital gains on sale of stock Capital losses on sale of stock Itemized deductions $70,000 2,000 40,000 5,000 1,000 7,000 20,000 At the end of the year, Julie reviews her financial records to project her adjusted gross income (AGI) to determine if she will qualify for certain tax credit. Based on her calculation, she estimates adjusted gross income (AGI) will be around $81,000. (70,000+ 2,000+ 40,000 - 5000 + 1000 - 7000-20,000).

Answer rating: 100% (QA)

Based on the information provided Julies AGI calculation appears to be incorrect The calculation sh... View the full answer