Addison earned a gross income of $42,750 last year. She made $537.56 in IRA contributions, donated $918 to her favorite charity and paid $1,351.35 in home mortgage interest. If Addison claims a standard deduction of $5,700 and her exemption is $3,650, what is her taxable income?

Question

texaschic101 · Answer

42,750 = gross income

standard deduction reduces your taxable income - 5700.00
exemption acts like a tax deduction, reducing taxable income - 3650.00
IRA contributions are tax deductible - 537.56
donating to charity is tax deductible - 918
mortgage interest payments are tax deductible - 1351.35

income NOT taxable - 5700 + 3650 + 537.56 + 918 + 1351.35 = 
12,156.91.

42,750.00 - 12,156.91 = 30,593.09 <---taxable income

I think I did this correctly, but just in case, you might want to get a second opinion :)

anonymous · Answer

Thank you!!

texaschic101 · Answer

your welcome...I hope it is correct...please let me know when you find out :)

anonymous · Answer

Its correct, thanks. :)