Karen is single. Last year she earned $35,300 in wages. Additional tax information for the year is as follows: interest earned: $135; capital gains from sale of stock: $1,650; penalty on early withdrawal of savings: $300; contributions to Keogh retirement fund: $1,900; real estate taxes paid: $3,000; mortgage interest paid: $3,600. The following table gives the standard deduction for various filing statuses. Standard Deductions Single or married filing separately $12,000 Married filing jointly or surviving spouse $24,000 Head of household $18,000 65 or older and/or blind and/or someone else can claim you (or your spouse if filing jointly) as a dependent: Varies (See www.irs.gov for information.) Find the taxable income for the year. a.$16,285 b.$22,885 c.$36,950 d.$37,085
Karen is single. Last year she earned $35,300 in wages. Additional tax information for the year is as follows: interest earned: $135; capital gains from sale of stock: $1,650; penalty on early withdrawal of savings: $300; contributions to Keogh retirement fund: $1,900; real estate taxes paid: $3,000; mortgage interest paid: $3,600. The following table gives the standard deduction for various filing statuses. Standard Deductions Single or married filing separately $12,000 Married filing jointly or surviving spouse $24,000 Head of household $18,000 65 or older and/or blind and/or someone else can claim you (or your spouse if filing jointly) as a dependent: Varies (See www.irs.gov for information.) Find the taxable income for the year. a.$16,285 b.$22,885 c.$36,950 d.$37,085
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 58P
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20. Karen is single. Last year she earned $35,300 in wages. Additional tax information for the year is as follows: interest earned: $135; capital gains from sale of stock: $1,650; penalty on early withdrawal of savings: $300; contributions to Keogh retirement fund: $1,900; real estate taxes paid: $3,000; mortgage interest paid: $3,600. The following table gives the standard deduction for various filing statuses.
Standard Deductions
| Single or married filing separately | $12,000 |
|---|---|
| Married filing jointly or surviving spouse | $24,000 |
| Head of household | $18,000 |
| 65 or older and/or blind and/or someone else can claim you (or your spouse if filing jointly) as a dependent: |
Varies (See www.irs.gov for information.) |
Find the taxable income for the year.
a.$16,285
b.$22,885
c.$36,950
d.$37,085
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