A woman earned wages of $42500, received $2800 in interest from a savings account, and contributed $3200 to a tax-deferred retirement plan. She was entitled to a personal exemption of $4050 and had deductions totaling $6540. Find her gross income, adjusted gross income, and taxable income.

Question

Mathematics

Marianna Mcneil

27 December, 10:50

A woman earned wages of $42500, received $2800 in interest from a savings account, and contributed $3200 to a tax-deferred retirement plan. She was entitled to a personal exemption of $4050 and had deductions totaling $6540. Find her gross income, adjusted gross income, and taxable income.

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Jaydin Garrison · Answer 1

1. wages + other earnings = gross income

42500 + 2800 = 45300

2. gross income - any tax-deferred = adjusted gross income

45300 - 3200 = 42100

3. adjusted gross income - exemptions & deductions = taxable income

42100 - 4050 - 6540 = 31510