What would be the adjusted gross income of an individual earning $60,000 with $500 monthly child support payments?

To determine the adjusted gross income (AGI) for an individual earning $60,000 with child support payments of $500 monthly, it’s essential to understand how child support interacts with income calculations for tax purposes.

Adjusted gross income includes all income subject to tax minus specific deductions, but child support payments are not deductible by the payer nor are they included in the recipient's income. Therefore, the child support payments do not affect the AGI calculation.

The individual’s income remains at the full amount of $60,000, as the child support payments, which total $6,000 annually ($500 x 12 months), do not alter the income reported for tax purposes. Given this structure, the correct AGI remains at $60,000, clearly indicating that child support payments do not impact the gross income figure directly.