Karen is single. Last year she earned $37,300 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: $400; contributions to Keogh retirement fund: $1,800; real estate taxes paid: $3,000; mortgage interest paid: $3,500. 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.
Karen is single. Last year she earned $37,300 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: $400; contributions to Keogh retirement fund: $1,800; real estate taxes paid: $3,000; mortgage interest paid: $3,500. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Karen is single. Last year she earned $37,300 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: $400; contributions to Keogh retirement fund: $1,800; real estate taxes paid: $3,000; mortgage interest paid: $3,500. 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.
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