Sally McKrachen is a single young professional with a gross income of $51,000.Sally has no adjustments to gross income,but she does have itemized deductions totaling $4,275.If personal exemptions for the year are $3,700 each and the standard deduction is $5,800,what is Sally's taxable income?

Question

Quizplus · Accepted Answer

Sally should choose the higher of her itemized deductions ($4,275) or the standard deduction ($5,800) to lower her taxable income. Since the standard deduction is higher, she will use that. Subtracting the standard deduction ($5,800) and the personal exemption ($3,700) from her gross income ($51,000) gives her a taxable income of $51,000 - $5,800 - $3,700 = $41,500.

Sally McKrachen Is a Single Young Professional with a Gross