Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike's total taxable income? a. $72,643 b. $75,479 c. $71,829 d. $66,129

Question

Mathematics

Hadassah Gomez

3 October, 05:12

Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike's total taxable income? a. $72,643 b. $75,479 c. $71,829 d. $66,129

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Katrina Durham · Answer 1

The gross income is $85,463

Here are the deduction before tax is applied:

$896 - income

$2,145 - charitable donations

$3,473 - medical expenses

2 x $3,650 - exemptions

Adding all the deductions:

$896 + $2,145 + $3,473 + 2 x $3,650 = $13,814

Subtracting this from the gross income:

$85,463 - $13,814 = $66,129