Avery is an unmarried individual who earned a gross income of $95,574 last year. She made $4,589.13 in IRA contributions, donated $3,621 to her favorite charities and paid $2,987.43 in mortgage interest. A standard deduction is $5,700 for an unmarried individual. If Avery’s exemption is $3,650, what is her taxable income?

$75,026.44

$80,726.44

$81,634.87

$83,713.87

Question

Avery is an unmarried individual who earned a gross income of $95,574 last year. She made $4,589.13 in IRA contributions, donated $3,621 to her favorite charities and paid $2,987.43 in mortgage interest. A standard deduction is $5,700 for an unmarried individual. If Avery’s exemption is $3,650, what is her taxable income?

 $75,026.44

 $80,726.44

 $81,634.87

 $83,713.87

anonymous · Answer

Do I subtract the Gross Income and the IRA or the Adjustment I cant find the Adjustment .

anonymous · Answer

94574 + 4589.13

57000 - 3650  ?

radar · Answer

Looks like a question for a tax expert

I believe the IRA contributions would be subtracted as these are deferred until the IRA is cashed in.  Pllus the charity would be subtracted (assuming that it all can be deducted in the tax year), also the mortage interest as well as her exemption.  If this is true, then after all the subtraction is done her taxable income would be $80,726.44...........but I am not a tax expert.

anonymous · Answer

ok thanks alot !