Answer to Question #43369 in Economics of Enterprise for Seth Morgan

Question

Evan is employed as an assistant manager in the furniture division of a national chain of department stores. He is a recent college graduate with a degree in marketing. During 2011, he enrolls in the evening MBA program of a local university and incurs the following expenses: tuition, $4,300; books and computer supplies, $900; transportation expense to and from the university, $350; and meals while on campus, $300. Evan is single and his annual AGI is less than $65,000. Regarding these expenses, what are Evan's:

I. Deductions for AGI?

II. Deductions from AGI?

Answer 1

2011 expenses:
tuition, $4,300;
books and supplies, $900;
transportation, $350;
meals, $300.
Annual AGI is less than $65,000. Regarding these expenses, Evan's deductions
for AGI will be:
Deductions = 4300 + 900 + 350 + 300 = $5,850
Deductions from AGI = 65,000 - 5,850 = $59,150