Read the following letter and help Shady Sim with his tax situation. Please assume that his gross income is
$772,900
(Which consists only of salary) and fining status of single for purposes of this problem.
December 31, 2025
To the friendly student tax preparer:
Hi, it's Shady Slim again. I just got back from my
55^(th )
birthday party, and fm told that you need some more information from me in order to complete my tax return. Im an open book! II tell you whatever I think you need to know.
I had to move this year affer getting my job at Roca Cola. I moved on February 3 of this yeac, and I worked my job at Roca Cola for the rest of the year, I still live in the same stabe, but I moved 500 miles away from my old house. I hired a moving company to move my stull at a cost of
$2,300
, and I drove in my car. I got a hotel room along the way that cost me
$650
love Super 89.
Can you believe I'm still paying off my student loans, even after 15 years? I paid a total af
$900
in interest on my old student loans this year.
Since Roca Cola (my employer) never started a retirement plan, I decided I should probably start saving for my golden years. I contributed
$3,000
to what the bank referred to as a regular las lor was it an REWh, Oh yeah, I also did a little investing this year. I bought a limited partnership interest in Duds Ltd. for
$10.000
I thought it was going to be a real winner, but this year they took a bath. My portion of the loss was
$8,000
. Well, at least I did not actually do any work for Duds, and I get the tax deduction - right?
That should be all the information you need right now. Please calculate my acfusted gross income and complete page 1 of Form 1040 (through line tif) and Schedule 1. You're still doing this for free, right?
Required
a. Calculate the taxable income.
\table[[Qross Income,
$