Audry, age 38 and single, earned a salary of $59,000

Business Oct 07, 2020

Audry, age 38 and single, earned a salary of $59,000. She had interest income of $1,600 and had a $2,000 long-term capital loss from the sale of a stock investment.
Audry incurred the following employment-related expenses during the year:

Transportation $55,800
Meals $2,800
Lodging $4,200
Entertaining clients $2,200
Professional dues and subscriptions $300

Under and accountable plan, Audry receives reimbursements of $4,500 from her
employer. Calculate her AGI and itemized employee business expenses.

Expert Solution

Audry's calculation of adjusted gross income does not include any of the employee business expenses because they would all be reported on Schedule A. Itemized deductions are allowable on page 2 of the Form 1040, AFTER AGI.

Audry's AGI is salary plus interest income minus capital loss = $58,600.

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