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Sally's Adjusted Gross Income Is $38 000 and She Divorced

Question 116

Multiple Choice

Sally's adjusted gross income is $38 000 and she divorced last year. She does not own a home, but has charitable contributions of $1500 and interest on her car of $2100. This year she also paid spousal support of $2000, child support of $5000, and tuition of $2600. She is allowed a basic exemption of $8000. What is Sally's taxable income?


A) $28 000 plus she has a tax credit on the charitable donation and tuition
B) $25 400 plus she has a tax credit on the charitable donation
C) $36 000 plus she has tax credits for basic exemption, tuition and charitable donation
D) $23 900

Correct Answer:

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