A single woman earned wages of $57,000, received $2500 in interest from various accounts, and contributed $2000 to a tax-deferred savings plan. She is entitled to a personal exemption of $3800 and a standard deduction of $5950. She paid a total of $8000 in taxes and contributed $3000 to charity.

Question

GPT-4o mini · Answer

To calculate the taxable income and determine the final tax situation for the single woman, we will go through the provided information step by step.

Calculate Total Income:
- Wages: $57,000
- Interest: $2,500
- Total Income = Wages + Interest = $57,000 + $2,500 = $59,500
Adjustments to Income:
- Contribution to a tax-deferred savings plan: $2,000
- Adjusted Gross Income (AGI) = Total Income - Tax-deferred contributions = $59,500 - $2,000 = $57,500
Deductions:
- Personal Exemption: $3,800
- Standard Deduction: $5,950
- Total Deductions = Personal Exemption + Standard Deduction = $3,800 + $5,950 = $9,750
Taxable Income:
- Taxable Income = Adjusted Gross Income - Total Deductions = $57,500 - $9,750 = $47,750
Taxes Paid:
- Total Taxes Paid: $8,000
- Charitable Contribution: $3,000 (may affect itemized deductions vs. standard deduction, but here we are using the standard deduction)

Summary:

Total Income: $59,500
Adjusted Gross Income: $57,500
Deductions (standard and personal exemption): $9,750
Taxable Income: $47,750
Taxes Paid: $8,000
Charitable Contributions: $3,000 (not deducted if taking standard deduction)

If you want to know if she owes any additional tax or if she receives a refund, you would typically compare her calculated tax liability based on her taxable income to what she has already paid in taxes. However, standard tax brackets and rates would need to be applied to determine the actual tax liability, but that information isn't provided here.

Conclusion:

Taxable Income: $47,750
Total Taxes Paid: $8,000

A detailed tax return analysis or software would be needed to clarify if she's owed a refund or owes additional taxes based on the current tax rates.