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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jeff jeffy answered 1 year ago

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