Question

Say you are filing as a single taxpayer. You have a gross income of $61,026 and claim two exemptions. You can make a deduction of $2,871 for interest on your mortgage, a deduction of $2,376 for property tax, an adjustment of $3,206 for business losses, an adjustment of $2,575 for contributions to your retirement plan, a deduction of $2,682 for medical expenses, and an adjustment of $2,440 for business expenses. If exemptions are each worth $3,650 and the standard deduction is $5,700, what is your total taxable income?

Answer 1

Answer:

$37,576.

Step-by-step explanation:

You can only take a standard deduction if you do not itemize your deductions, since in this case the added value of all listed deductions exceed the standard deduction, the standard should not be considered.

Total taxable income in the gross income subtracted by all of the deductions, adjustments, and exemptions. In this case, two exemptions of $3,650 each should be considered:

$T= 61,026-(2*3,650) - 2,871 - 2,376 -3,206- 2,575-2,682 -2,440\\T=\ 37,576$

Your total taxable income is $37,576.

Answer 2

C. $37,576 same, took the test got it wrong so... here's the correct answer