Question

**4. Calculating taxable income**

For 2016, the personal exemption amount is $4,050. The 2016
standard deduction is $6,300 for unmarried taxpayers or married
taxpayers filing separately, $12,600 for married taxpayers filing
jointly, and $9,300 for taxpayers filing as head of
household.

**Calculating Lynn’s Taxable Income**

Lynn is an unmarried person filing single. Calculate Lynn’s 2016
taxable income by filling in the worksheet. Enter adjustments,
deductions, and exemptions as negative numbers. If your answer is
zero, enter "0".

• Lynn will earn $80,965 in wages this year.

• She contributed $4,000 to an IRA.

• She received a gift from her parents to put a down payment on a
new car totaling $5,000.

• She uses the standard deduction.

• She donated $1,000 to charity.

• She is entitled to one exemption.

2016 Taxable Income |
Show How You Got Your Answers |
---|---|

Gross income |
$__________________ |

Less: Adjustments to income |
-___________________ |

Adjusted gross income |
$__________________ |

Less: Deductions |
-___________________ |

Subtotal |
$__________________ |

Less: Exemptions |
-___________________ |

Taxable income |
$__________________ |

Answer #1

Gross income | $80,965 |

Less: Adjustment to income [Contribution to IRA] | $ 4,000 |

Adjusted gross income | $ 76,965 |

Less: Deductions [ Standard deduction ] | $ 6,300 |

Subtotal | $ 70,665 |

Less: Exemption [Personal exemption] | $ 4,050 |

Taxable income | $ 66,615 |

Note : 1) Donations to charity of $ 1,000 is an itemized deduction and can't be [ deductible ] use, when standard deduction has been used.

2) Gift from parents of $ 5,000 is not a taxable income and doesn't related with any tax consideration. It is totally excluded from taxable income calculation.

For 2016, the personal exemption amount is $4,050. The 2016
standard deduction is $6,300 for unmarried taxpayers or married
taxpayers filing separately, $12,600 for married taxpayers filing
jointly, and $9,300 for taxpayers filing as head of household.
Calculating Austin and Joseph’s Taxable Income
Austin and Joseph are a married couple filing jointly. Calculate
Austin and Joseph’s 2016 taxable income by filling in the
worksheet. Enter adjustments, deductions, and exemptions as
negative numbers. If your answer is zero, enter "0".
•...

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Sara is married, but she and her husband filed separately.
Her salary was $50,800, and she earned $260 in interest. She
had $5700 in itemized deductions and claimed four exemptions, for
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Tax Rate
Married Filing Separately
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of the description in the Answer column next to the correct
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These are not necessarily complete definitions, but there is
only one possible answer for each term.
Term
Answer
Description
Adjustments
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Arthur and Cora are married and have 2 dependent children. They
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taxpayers.
If an amount is zero, enter "0".
Click here to access the standard deduction table to
use.
a.
Ellie is 15 and claimed as a
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$1,480 in wages from a part-time job.
$
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Ruby and Woody are married and file
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If an amount is zero, enter "0".
Click here to access the standard deduction table to
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$
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If an amount is zero, enter "0".
Click here to access the standard deduction table to use.
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$
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Walt is single and has no dependents. Without considering his
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Home mortgage interest $21,700 State and local income taxes 7,800
Charitable contributions 6,500 Personal exemption 4,050 40,050
Taxable income $205,950 What is Walt's tax liability without the
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2017 tax rate schedule
Single
If taxable income is:
The tax is:...

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