5. find the gross income, the adjusted gross income, and the taxable income. base the taxable income on the…

5. find the gross income, the adjusted gross income, and the taxable income. base the taxable income on the greater of a standard deduction or an itemized deduction. a taxpayer earned wages of $212,800, received $1500 in interest from a savings account and contributed $19,500 to a tax - deferred retirement plan. she had itemized deductions totaling $23,350, which is more than the standard deduction of $18,800 for her filing status.

5. find the gross income, the adjusted gross income, and the taxable income. base the taxable income on the greater of a standard deduction or an itemized deduction. a taxpayer earned wages of $212,800, received $1500 in interest from a savings account and contributed $19,500 to a tax - deferred retirement plan. she had itemized deductions totaling $23,350, which is more than the standard deduction of $18,800 for her filing status.

Answer

Explanation:

Step1: Calculate gross income

Gross income is the sum of wages and interest. $212800 + 1500=214300$

Step2: Calculate adjusted gross income

Adjusted gross income is gross income minus contributions to tax - deferred retirement plan. $214300- 19500 = 194800$

Step3: Calculate taxable income

Since itemized deductions ($23350$) are greater than standard deductions ($18800$), we use itemized deductions. Taxable income is adjusted gross income minus itemized deductions. $194800 - 23350=171450$

Answer:

Gross income: $$214300$ Adjusted gross income: $$194800$ Taxable income: $$171450$