Keith earned a salary of $68,000 this year. He contributed $5,000 to his traditional Individual Retirement Account (IRA) and paid $3,000 alimony to his ex wife. His AGI is computed as follows.
|
Gross income |
|
|
|
Salary |
$68,000 |
|
|
Less: Deductions for AGI |
|
|
|
IRA contribution |
$5,000 |
|
|
Alimony payment |
3,000 |
(8,000) |
|
AGI |
$60,000 |