In 2019, Sam is single, 35 years old, rents an apartment for 400 a month and...

In 2019, Sam is single, 35 years old, rents an apartment for 400 a month and makes a charitable contribution of 3,000. Sam’s AGI is 47,000. Sam’s taxable income is:

(a) 32,000

(b) 34,800

(d) 42,000

Taxable income for an individual can be:

(a) AGI reduced by itemized deductions

(b) AGI reduced by personal and dependency exemptions

(d) AGI reduced by deductions from AGI and personal and dependency exemptions

Which of the following is progressive?

(a) Sales tax

(b) Excise tax

(d) Income tax

Solutions

Expert Solution

ans 1

AGI	$47,000
Less: standard deduction	12200
Taxable income	$34,800

In this case as itemize deduction is lower than standard deduction
hence standard deduction taken

Option b $34800

ans 2
Option C AGI reduced by the greater of standard deduction or itemized deductions

As from 2019 there is no personal exemption hence to calculate AGI we need to
deduct higher if standard deduction or itemwize deduction

ans 3
c) Property taxes
Progressive taxes are the taxes in which higher income earners pay more than lower income
earners


If any doubt please comment

ekkarill92 answered 1 year ago

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