A single taxpayer earns $500,000 of salary income and $20,000 of interest income. The taxpayer is also a partner in a partnership. The taxpayer is a material participant in the partnership. His share of the partnership's loss for the year is $300,000. The taxpayer will report AGI of

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The taxpayer's AGI is $270,000. This is calculated by taking the taxpayer's salary income of $500,000, adding the interest income of $20,000, and then subtracting the partnership loss of $300,000.

A Single Taxpayer Earns $500,000 of Salary Income and $20,000