Question

Charles has gross income of $81750 and is single but provides the sole support of his elderly parents, paying all their housing, food and clothing costs in 2017. (Enter your final answers without using comma separator, e.g. 5225.)

a. How much may he deduct from his AGI for his personal and dependency exemptions?

	$

b. How much is his standard deduction?

	$

Answer 1

a. Personal and dependency exemption =4050*3=$12150

Personal exemptions used to be one form of deduction you could use to reduce your taxable income. This in turn lowered the amount of income tax you'd have to pay because you'd be paying taxes on less money.Tax exemption amounts:A taxpayer is permitted to claim one personal exemption for himself and one exemption for each person he's able to claim as a dependent.You can't claim a personal exemption for yourself if you're someone else's dependent because that taxpayer is already claiming your personal exemption.

b. Standard deduction rates:Since, Mr. Charles is an unmarried individual he is eligible to claim $6350 as standard deduction.