Answered: In 2020, Mary, age 70 and head of…

In 2020, Mary, age 70 and head of household (unmarried), had income of $37,000 and exclusions of $500. Mary had adjustments

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 31CE: Emily, who is single, sustains an NOL of 7,800 in 2019. The loss is carried forward to 2020. For...

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Question

In 2020, Mary, age 70 and head of household (unmarried), had income of $37,000 and exclusions of $500. Mary had adjustments/deductions for AGI of $2,500, and her itemized deductions for the year totaled $21,000. Mary had a QBI deduction of $1,000. Mary is entitled to a tax credit of $2,000. Mary is blind.

What is Mary’s taxable income?

(I answered $12,000 but it was wrong)

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