Emma, a single taxpayer, obtains permission to change from a calendar year to a fiscal year ending June 30, 2018. During the six months ending June 30, 2018, she earns $40,000 and has $8,000 of itemized deductions. What is the amount of her annualized income?

Question

Quizplus · Accepted Answer

To annualize her income, multiply the six-month income by 2: $40,000 * 2 = $80,000. Then, subtract the annualized itemized deductions: $8,000 * 2 = $16,000. So, $80,000 - $16,000 = $64,000.

Emma, a Single Taxpayer, Obtains Permission to Change from a Calendar