In: Finance
Kerri is single and claims two exemptions. Last year she earned $48,800 in wages. Additional tax information for the year is as follows: interest earned: $229; capital gains from sale of stock: $2,650; penalty on early withdrawal of savings: $400; contributions to Keough retirement fund: $1,500; real estate taxes paid: $4,500; mortgage interest paid: $4,200. Find the taxable income for the year.
(ps . Standard Deduction in 2018 for MFJ or QW with dependent is $24,000; for S or MFS is $12,000; for HoH is $18,000)
$49,779 |
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$37,779 |
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$31,779 |
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$33,279 |
Filing status | Single | |
Particulars | Amount | Amount |
Gross income: | ||
Salary | $ 48,800 | |
Capital gain | $ 2,650 | |
Interest | $ 229 | |
Gross income | $ 51,679 | |
For AGI deductions -LTCL | $ 1,900 | |
Adjusted gross income | $ 49,779 | |
Less: | ||
Standard deduction | $ 12,000 | |
Itemized deduction | $ 8,700 | |
Higher of the two | $ 12,000 | |
Taxable income | $ 37,779 |
Answer is $37,779
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