Income Tax Chapter 15 #60 Tom's Salary $50,000 Alice's Revenue $185,000 Gross Income $235,000 Less: Deductions for AGI Business expenses (not including home office) $93,900 Home office* $2,984 Self-employment tax** $6,436 ($103,320) Adjusted gross income $131,680 Less: Deductions from AGI Itemized deductions*** $15,680 Personal & dependency exemptions $15,800 ($31,480) Taxable Income $100,200 Taxes due on $100,200 $16,763 Plus: Self-employment tax** $12,872 $29…
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