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Hope Is a Marketing Manager at a Local Company Compute Hope's Taxable Income for the Year in Good Form

Question 107

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Hope is a marketing manager at a local company.Information about her 2019 income and expenses is as follows:
 Income received  Salary $150,000 Taxes withheld from salary:  Federal income tax $30,000 State income tax 9,000 Social Security tax 8,209 Medicare tax 2,175 Interest income from bank 6,000 Dividend income from U.S. stocks 4,000 Short-term capital gain 2,000 Long-term capital gain 3,000 State income tax refund from lastyear 500 Expenses paid:  Unreimbursed dental and eyecare costs $1,800 Property taxes on her home 3,900 Fees paid to town for garbage pick-up 400 Stock donated to American Red Cross; FMV $5,000purchased three years ago for $3,100 Home mortgage interest 10,000 Investment interest expense 11,000 Interest on car loan 300\begin{array}{|l|l|}\hline\text { Income received } & \\\hline \text { Salary } & \$ 150,000\\\text { Taxes withheld from salary: }\\\begin{array}{lr}\text { Federal income tax } & \$ 30,000 \\\text { State income tax } & 9,000 \\\text { Social Security tax } & 8,209 \\\text { Medicare tax } & 2,175 \\\end{array}\\\hline \text { Interest income from bank } & 6,000 \\\hline \text { Dividend income from U.S. stocks } & 4,000 \\\hline \text { Short-term capital gain } & 2,000 \\\hline \text { Long-term capital gain } & 3,000 \\\hline \text { State income tax refund from lastyear } & 500 \\\hline \text { Expenses paid: }\\\hline \text { Unreimbursed dental and eyecare costs } & \$ 1,800 \\\hline \text { Property taxes on her home } & 3,900 \\\hline \text { Fees paid to town for garbage pick-up } & 400 \\\hline\text { Stock donated to American Red Cross; FMV } \$ 5,000 \text {; }\\\text {purchased three years ago for } \$ 3,100\\\hline \text { Home mortgage interest } & 10,000 \\\hline \text { Investment interest expense } & 11,000 \\\hline \text { Interest on car loan } & 300\\\hline\end{array} Compute Hope's taxable income for the year in good form.Show all supporting computations.Hope is single,and she elects to itemize her deductions each year.Assume she does not make any elections regarding the investment interest expense.Also assume that her tax profile was similar in the preceding year.

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