In 2015,Carol,who is 54 and single,earned a salary of $54,000 and $6,000 of interest on State of Nevada bonds.She contributed $2,000 to her Roth IRA,paid a $4,000 hospital bill,state income taxes of $1,500,real estate taxes of $900,mortgage interest of $4,500,and $2,000 interest on her margin account under which she purchased the bonds.What is Carol's taxable income?

Question

Quizplus · Accepted Answer

$54,000 - ($1,500 + $900 + $4,500)- $4,000 personal exemption = $43,100; the hospital bill is less than 10% of AGI; the contribution to a Roth IRA is not deductible; the tax-exempt bond interest and related interest paid on the margin account do not affect taxable income.

In 2015,Carol,who Is 54 and Single,earned a Salary of $54,000