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

confluxepic · Answer

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redheadangel · Answer

the final value is normally rounded off so that there is no cents.  Maybe it is $30,593, but all the answers shows some pennies.  I am perplexed.......if you put the 5700 back on the answer36,293.09 which is the suggestion of ivettef365

redheadangel · Answer

5700 + 3650 =9350 + 537.56 = 9887.56 -  [32862.44 ] you don't add the deductions

redheadangel · Answer

In questions like these all you have to do is take the gross income - IRA contributions - standard deduction -

redheadangel · Answer

5700 + 3650 + 537.56 + 918 + 1351.35 = 
12,156.91.

42,750.00 - 12,156.91 = 30,593.09 ?<---taxable income

anonymous · Answer

Thank you :).