A single taxpayer provided the following information for 2019: $$\begin{array} { | l | r | }
\hline \text { Salary } & \$ 80,000 \
\hline \text { Interest on local government bonds } & 4,000 \
\text { (qualifies as a tax exclusion) } & \
\hline \text { Allowable itemized deductions } & 13,000 \
\hline
\end{array}$$ What is taxable income?
A)$71,000
B)$67,800
C)$80,000
D)$67,000

Question

A single taxpayer provided the following information for 2019: $$\begin{array} { | l | r | } 
\hline \text { Salary } & \$ 80,000 \
\hline \text { Interest on local government bonds } & 4,000 \
\text { (qualifies as a tax exclusion) } & \
\hline \text { Allowable itemized deductions } & 13,000 \
\hline
\end{array}$$ What is taxable income?
A)$71,000
B)$67,800
C)$80,000
D)$67,000

Quizplus · Accepted Answer

Taxable income is calculated as Salary - Allowable itemized deductions. Interest on local government bonds is excluded from taxable income. Thus, $80,000 - $13,000 = $67,000.

A Single Taxpayer Provided the Following Information for 2019 What Is Taxable Income? A)$71,000 B)$67,800 C)$80,000 D)$67,000

A Single Taxpayer Provided the Following Information for 2019 What Is Taxable Income?
A)$71,000
B)$67,800
C)$80,000
D)$67,000