The adjusted gross income is calculated by subtracting all the deductions and adjustments from the gross income: $117,151 - $2,713 - $2,791 - $1,346 - $2,086 - $2,376 - $1,091 = $105,748.
The exemptions are worth $3,650 each, so the total exemption amount is $3,650 x 1 = $3,650.
The taxable income is calculated by subtracting the total exemptions and the standard deduction from the adjusted gross income: $105,748 - $3,650 - $5,700 = $96,398.
Therefore, the difference between the adjusted gross income and the taxable income is $105,748 - $96,398 = $9,350.
The correct answer is b. $9,350.
You have a gross income of $117,151 and are filing your tax return singly. You claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. The standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. What is the difference between your adjusted gross income and your taxable income?
a.
$16,053
b.
$9,350
c.
$10,825
d.
$14,475
1 answer
1 answer