In 2014,Mary had the following items: Assuming that Mary files as head of household (has one dependent child),determine her taxable income for 2014.

Question

In 2014,Mary had the following items:  Assuming that Mary files as head of household (has one dependent child),determine her taxable income for 2014.

Quizplus · Accepted Answer

Salary $30,000
Personal use casualty gains in excess of personal use
casualty losses ($10,000 - $10,000)-0-
Adjusted gross income $30,000
Less: Deductions
Itemized deductions
Casualty loss ($17,000 - $10,000)$7,000
AGI floor (10% × $30,000)(3,000)
Deductible casualty loss $4,000
Other itemized deductions 4,000
Total itemized deductions $8,000
Standard deduction (larger than itemized deductions)(9,100)
Personal exemption ($3,950 × 2)(7,900)
Taxable income $13,000

In 2014,Mary Had the Following Items: Assuming That Mary