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Kerri is single and claims two exemptions. Last year she earned $48,800 in wages. Additional tax...

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

$37,779

$31,779

$33,279

Solutions

Expert Solution

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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