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Jeremy and Alyssa Johnson have been married for five years and do not have any children.
Jeremy was married previously and has one child from the prior marriage. He is self-employed
and operates his own computer repair store. For the first two months of the year, Alyssa worked
for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys
Incorporated (ST), where she worked for the remainder of the year. This year, the Johnsons
received $265,000 of gross income. Determine the Johnson's AGI for 2023 given the following
information: a. Expenses associated with Jeremy's store include $42,500 in salary (and
employment taxes) to employees, $48,000 of supplies, and $19,000 in rent and other
administrative expenses. b. As a salesperson, Alyssa incurred $2,100 in travel expenses related to
her employment that were not reimbursed by her employer. c. The Johnsons own a piece of raw
land held as an investment. They paid $600 of real property taxes on the property and they
incurred $250 of expenses in travel costs to see the property and to evaluate other similar
potential investment properties. d. The Johnsons own a rental home. They incurred $8,600 of
expenses associated with the property. e. Jeremy paid $4,600 for health insurance coverage for
himself (not through an exchange). Alyssa was covered by health plans provided by her
employer, but Jeremy is not eligible for the plan until next year. f. Jeremy paid $2,600 in self-
employment taxes ($1,300 represents the employer portion of the self-employment taxes). g.
Jeremy paid $5,200 in alimony and $3,150 in child support from his prior marriage (divorce
decree executed in 2018). h. The Johnsons donated $2,100 to their favorite charity.

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Jeremy and Alyssa Johnson have been married for five years and do not.pdf

  • 1. Jeremy and Alyssa Johnson have been married for five years and do not have any children. Jeremy was married previously and has one child from the prior marriage. He is self-employed and operates his own computer repair store. For the first two months of the year, Alyssa worked for Office Depot as an employee. In March, Alyssa accepted a new job with Super Toys Incorporated (ST), where she worked for the remainder of the year. This year, the Johnsons received $265,000 of gross income. Determine the Johnson's AGI for 2023 given the following information: a. Expenses associated with Jeremy's store include $42,500 in salary (and employment taxes) to employees, $48,000 of supplies, and $19,000 in rent and other administrative expenses. b. As a salesperson, Alyssa incurred $2,100 in travel expenses related to her employment that were not reimbursed by her employer. c. The Johnsons own a piece of raw land held as an investment. They paid $600 of real property taxes on the property and they incurred $250 of expenses in travel costs to see the property and to evaluate other similar potential investment properties. d. The Johnsons own a rental home. They incurred $8,600 of expenses associated with the property. e. Jeremy paid $4,600 for health insurance coverage for himself (not through an exchange). Alyssa was covered by health plans provided by her employer, but Jeremy is not eligible for the plan until next year. f. Jeremy paid $2,600 in self- employment taxes ($1,300 represents the employer portion of the self-employment taxes). g. Jeremy paid $5,200 in alimony and $3,150 in child support from his prior marriage (divorce decree executed in 2018). h. The Johnsons donated $2,100 to their favorite charity.