If a household has a single woman and three kids, has a standard deduction of $6,300, its itemized deductions are $10,650 and personal exemptions of $12,000 (3*$4,000), then the first _____ of income is federal income tax free.

Question

Quizplus · Accepted Answer

The tax-free income is the sum of the standard deduction and personal exemptions, which is $6,300 + $12,000 = $18,300. However, since the itemized deductions are higher than the standard deduction, they should be used instead. So, the correct calculation is $10,650 (itemized deductions) + $12,000 (personal exemptions) = $22,650.

If a Household Has a Single Woman and Three Kids