Kerri is single. Last year she earned $48,800 in wages. Additional tax information for the year is as follows: interest earned: $229; capital gains from sale of stock: $2,650; penalty on early withdrawal of savings: $400; contributions to Keogh retirement fund: $1,500; real estate taxes paid: $4,500; mortgage interest paid: $4,200. 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= $48,800 + $229 + $2,650 - $400 - $1,500 - $4,500 - $4,200= $38,179

Kerri Is Single