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In 2019, Tom is single and has AGI of $50,000. He is age 70, has no...

In 2019, Tom is single and has AGI of $50,000. He is age 70, has no dependents, and has itemized deductions (i.e., from AGI) of $7,000. Determine Tom’s taxable income for 2019.

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Answer #1

Answer : Tom’s taxable income for 2019 = $36,150.

Explanation:

Tom's total standard deductions (including additional) = $12,200 (Standard) + $1,650 (additional) = $13,850

Since Tom's total standard deduction (including additional) is more than his itemized deductions ie. $7,000, he should claim standard deduction instead of itemized deduction.

Tom’s taxable income for 2019 = AGI - Total standard deductions

= $50,000 - $13,850 = $36,150.

Note : For 2019 , there is no personal exemption available.

   

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