question 21 (5.3 points) your gross income is $51,499.20. you deposited $11,250.00 into your tax - deferred…

question 21 (5.3 points) your gross income is $51,499.20. you deposited $11,250.00 into your tax - deferred retirement account for the year, and you made contributions to a health savings account of $649.25. what is your adjusted gross income? enter the dollar amount rounded to the nearest cent. your answer: answer question 22 (3.3 points) your adjusted gross income is $118,397.78. you paid $9,105.09 of interest on a mortgage loan, $14,005.21 for medical expenses, and made a charitable contribution of $1,020.88. the standard deduction for single filers is $14,600. what is your taxable income? enter the dollar amount rounded to the nearest cent. your answer:
Answer
Explanation:
Step1: Define adjusted - gross - income formula
Adjusted gross income (AGI) = Gross income - Deductions
Step2: Identify deductions for first question
Deductions = Tax - deferred retirement account contribution+Health savings account contribution Deductions = $11250 + 649.25=11899.25$
Step3: Calculate AGI for first question
AGI = $51499.20−11899.25 = 39599.95$
Step4: Define taxable - income formula
Taxable income = Adjusted gross income - Greater of itemized deductions or standard deduction
Step5: Calculate itemized deductions for second question
Itemized deductions = Mortgage interest+Medical expenses+Charitable contribution Itemized deductions = $9105.09 + 14005.21+1020.88 = 24131.18$
Step6: Compare itemized and standard deductions
Since $24131.18>14600$, we use itemized deductions.
Step7: Calculate taxable income for second question
Taxable income = $118397.78−24131.18 = 94266.60$
Answer:
Question 21: $39599.95 Question 22: $94266.60