Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductlons, and Exemptlons**

- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$, which is where the $10 \%$ rate leaves off, and continuing up to \$36,250.
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Kyle is single and earned wages of $34,036. He received $362 in interest from a savings account. He contributed $549 to a tax-deferred retirement plan. He had $405 in itemized deductions from
Charitable contributions. Calculate his adjusted gross income.

Question

Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductlons, and Exemptlons**

- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$, which is where the $10 \%$ rate leaves off, and continuing up to \$36,250.
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Kyle is single and earned wages of $34,036. He received $362 in interest from a savings account. He contributed $549 to a tax-deferred retirement plan. He had $405 in itemized deductions from
Charitable contributions. Calculate his adjusted gross income.

Quizplus · Accepted Answer

Kyle's adjusted gross income (AGI) is calculated by starting with his total income and then subtracting specific deductions. His total income includes his wages ($34,036) and interest income ($362), totaling $34,398. He contributed $549 to a tax-deferred retirement plan, which is deductible. However, the $405 in itemized deductions for charitable contributions does not reduce AGI directly because it's an itemized deduction, not an adjustment to income. Therefore, his AGI is $34,398 (total income) - $549 (retirement contribution) = $33,849.

Solve the Problem 15%15 \%15% Marginal Rate Affects Income Starting At $8925\$ 8925$8925

Solve the Problem $15 \%$ Marginal Rate Affects Income Starting At $\$ 8925$