Question

4. Calculating taxable income For 2016, the personal exemption amount is $4,050. The 2016 standard deduction...

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

$__________________

Homework Answers

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.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
For 2016, the personal exemption amount is $4,050. The 2016 standard deduction is $6,300 for unmarried...
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". •...
Compute the gross​ income, adjusted gross​ income, and taxable income in the following situation. Use the...
Compute the gross​ income, adjusted gross​ income, and taxable income in the following situation. Use the exemptions and deductions in the table to the right. Explain how it was decided whether to itemize deductions or use the standard deduction. 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 herself and three children. Tax Rate Married Filing Separately ​10%...
As a tax return preparer for The Fernando Rodriguez Tax & Accounting Service, you have been...
As a tax return preparer for The Fernando Rodriguez Tax & Accounting Service, you have been asked to calculate the missing information for some of the firm's tax clients. Use the standard deductions shown below and the itemized deduction amount shown below to determine the value of the deduction to claim. If adjusted gross income is less than or equal to $152,525 multiply the number of exemptions by $3,950. Name Filing Status (Exemptions) Income Adjustments to Income Adjusted Gross Income...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Hongtao is single and has...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Hongtao is single and has a gross income of $90,100. His allowable deductions for adjusted gross income are $4,300, and his itemized deductions are $13,400. The standard deduction for 2017 is $6,350 and a personal exemption is $4,050. Round all amounts to the nearest dollar. Refer Tax Rate Schedules to answer the following questions. a. Hangtao's taxable income is $ and his tax liability is $________ for 2017. b....
Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of...
Components to Taxable Income Terminology Match the terms relating to the basic terminology and concepts of personal taxation on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Adjustments    A. This is taxed as ordinary income if held...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Arthur and Cora are married...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Arthur and Cora are married and have 2 dependent children. They have a gross income of $95,000. Their allowable deductions for adjusted gross income total $4,000, and they have total allowable itemized deductions of $14,250. The standard deduction for 2017 is $12,700 and the personal exemption is $4,050. Refer to the Tax Rate Schedules to answer the following questions. Round intermediate computations and final answer to the nearest dollar....
Compute the 2020 standard deduction for the following taxpayers. If an amount is zero, enter "0"....
Compute the 2020 standard deduction for the following 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 dependent by her parents. She has $1,600 in dividends income and $1,480 in wages from a part-time job. $ b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $11,910. $...
Compute the 2019 standard deduction for the following taxpayers. If an amount is zero, enter "0"....
Compute the 2019 standard deduction for the following 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 dependent by her parents. She reports $650 in dividends income and $1,440 in wages from a part-time job. $ b. Ruby and Woody are married and file a joint tax return. Ruby is age 66, and Woody is 69. Their taxable retirement income is $12,560. $...
Tax Drill - Computing the Standard Deduction Compute the 2017 standard deduction for the following taxpayers....
Tax Drill - Computing the Standard Deduction Compute the 2017 standard deduction for the following taxpayers. If an amount is zero, enter "0". Click here to access the standard deduction table to use. a. Margie is 15 and claimed as a dependent by her parents. She has $800 in dividends income and $1,400 in wages from a part-time job. $ b. Ruby and Woody are married and file a joint tax return. Ruby is age 66 and Woody is 69....
Walt is single and has no dependents. Without considering his $17,000 adjusted net capital gain (ANCG),...
Walt is single and has no dependents. Without considering his $17,000 adjusted net capital gain (ANCG), his taxable income, which includes no investment income, in 2017 is as follows: AGI $246,000 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 ANCG is? What is Walt's tax liability with the ANCG? 2017 tax rate schedule Single If taxable income is: The tax is:...