Andy, who is single, retired from his job this year. He re…
Andy, who is single, retired from his job this year. He received a salary of $22,000 for the portion of the year he worked. He received tax-exempt interest of $4,000 He received dividends from domestic corporations of $2,000 On August 1, he began receiving monthly pension payments of $900. Assume an exclusion ratio of 40% for the pension. The taxable portion is $540 per month times 5 months for a total of $2,700. On August 1, he began receiving monthly Social Security payments of $500. The taxable portion is $1,250. Andy owns a duplex that he rents to others. He received rent of $16,000 and incurred $18,000 of expenses related to the duplex. He continued to actively manage the property after he retired from his job. Compute Andy’s Gross Income.