Amanda earned a gross income of $37,250 last year. She made $489.78 in IRA contributions, donated $782 to her favorite charity and paid $1,276.65 in home mortgage interest. If Amanda claims a standard deduction of $5,700 and her exemption is $3,650, what is her taxable income?

Question

anonymous · Answer

If I am not wrong if Amanda claims a standard deduction she would not be allowed to itemize the other deductions (e.g. contribution, charity, home mortgage interest).

Thus, (gross income) - (standard deduction) - (exemption)= taxable income

37,250 - 5,700 - 3,650 = taxable income.