Karen is single. Last year she earned $36,300 in wages. Additional tax information for the year is as follows: interest earned: $125; capital gains from sale of stock: $1,650; penalty on early withdrawal of savings: $300; contributions to Keogh retirement fund: $1,900; real estate taxes paid: $3,000; mortgage interest paid: $3,100. Find the taxable income for the year.

Question

Quizplus · Accepted Answer

Taxable income = Wages + Interest earned + Capital gains - Penalty on early withdrawal of savings - Contributions to Keogh retirement fund - Real estate taxes paid - Mortgage interest paid= $36,300 + $125 + $1,650 - $300 - $1,900 - $3,000 - $3,100= $26,075

Karen Is Single