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5 December, 00:01

Randy is a waiter at the silver spoon restaurant. his w-2 box 1 wages are $16,400, box 7 (social security tips) is $500, box 8 (allocated tips) is $350 and Randy has $144 in tips that he did not have to report to his employer. If this is his only income, how much will be entered on form 1040 line 1?

a) $16,894

b) $16,900

c) $16,544

d) $16,750

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Answers (1)
  1. 5 December, 00:04
    0
    a) $16,894

    Explanation:

    The computation of his income is shown below:

    = Wages + allocated tips for box 7 + tips that do not reported

    = $16,400 + $350 + $144

    = $16,894

    We simply added the Wages, allocated tips for box 7, and tips that do not reported so that the exact value could come

    All other information which is given is not relevant. Hence, ignored it
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