b. Gifts of up to $15,000 per year from any person are not counted as taxable income. Also, the personal exemption allows you to reduce your taxable income by $4,050 for each member of your household. Given these exemptions, what is your taxable income? c. Next, assume you paid $700 in interest on your student loans last year, put $2,000 into a health savings account (HSA), and deposited $4,000 into an individual retirement account (IRA). These expenditures are all tax exempt, meaning that any money spent on them reduces taxable income dollar-for-dollar. Knowing that fact, now what is your taxable income? d. Next, you can either take the so-called standard deduction or apply for itemized deductions (which involve a lot of tedious paperwork). You opt for the standard deduction that allows you as head of your household to exempt another $18,350 from your taxable income. Taking that deduction into account, what is your taxable income? %24
b. Gifts of up to $15,000 per year from any person are not counted as taxable income. Also, the personal exemption allows you to reduce your taxable income by $4,050 for each member of your household. Given these exemptions, what is your taxable income? c. Next, assume you paid $700 in interest on your student loans last year, put $2,000 into a health savings account (HSA), and deposited $4,000 into an individual retirement account (IRA). These expenditures are all tax exempt, meaning that any money spent on them reduces taxable income dollar-for-dollar. Knowing that fact, now what is your taxable income? d. Next, you can either take the so-called standard deduction or apply for itemized deductions (which involve a lot of tedious paperwork). You opt for the standard deduction that allows you as head of your household to exempt another $18,350 from your taxable income. Taking that deduction into account, what is your taxable income? %24
Chapter2: Income Tax Concepts
Section: Chapter Questions
Problem 20P: Sheila, a single taxpayer, is a retired computer executive with a taxable income of 100,000 in the...
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Please help me with b, c , d, e, and f. Thanks! If you zoom in it should be clearer.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT