Compute Marie's taxable income for 2008, assuming she is single and claims two dependent children. Her adjusted gross income is $70,000 and she has itemized deductions of $9,000.
P.S. Be sure to look at some of the older posts below for answers.
Sra
To compute Marie's taxable income for 2008, we need to follow these steps:
Step 1: Determine the filing status
Since Marie is single, she will file as a single taxpayer.
Step 2: Calculate the adjusted gross income (AGI)
Marie's AGI is given as $70,000.
Step 3: Calculate the total deductions
Marie has itemized deductions of $9,000.
Step 4: Determine the number of exemptions
Marie claims two dependent children, which means she will have two exemptions. Each exemption reduces taxable income by a specific amount.
Step 5: Calculate the taxable income
To calculate the taxable income, we subtract the total deductions and exemptions from the AGI.
AGI - (Deductions + Exemptions) = Taxable Income
Let's plug in the values:
$70,000 - ($9,000 + (2 * Exemption Amount)) = Taxable Income
The exemption amount for 2008 was $3,500 per exemption.
$70,000 - ($9,000 + (2 * $3,500)) = Taxable Income
$70,000 - ($9,000 + $7,000) = Taxable Income
$70,000 - $16,000 = Taxable Income
$54,000 = Taxable Income
Therefore, Marie's taxable income for 2008, assuming she is single and claims two dependent children, is $54,000.