Question

1. isabella is filing taxes. she lists her deductions as $5, 200 for using her home as her business, a $1, 000 donation to charity, $600 for medical expenses, $2, 500 for property taxes, and $1, 355 for student - loan interest. her income is $52, 000. the standard deduction for a single taxpayer is $12, 200. what is her taxable income?

$39, 800
$10, 655
$41, 345
$43, 000.

Explanation:

Step1: Calculate total itemized deductions

First, we sum up all the itemized deductions. The deductions are $5,200 (home business), $1,000 (charity), $600 (medical), $2,500 (property taxes), and $1,355 (student - loan interest).
So, the total itemized deductions $= 5200+1000 + 600+2500+1355$.
$5200+1000=6200$; $6200 + 600 = 6800$; $6800+2500 = 9300$; $9300+1355=10655$.

Step2: Compare itemized and standard deduction

The standard deduction for a single taxpayer is $12,200. Since $12,200>10655$, Isabella will use the standard deduction.

Step3: Calculate taxable income

Taxable income is calculated as Income - Standard Deduction. Her income is $52,000 and the standard deduction is $12,200.
So, taxable income $=52000 - 12200=39800$.

Answer:

\$39,800