Amanda earned a gross income of $37,250 last year. She made $489.78 in IRA contributions, donated $782 to her favorite charity and paid $1,276.65 in home mortgage interest. If Amanda claims a standard deduction of $5,700 and her exemption is $3,650, what is her taxable income?
$25,351.57
$26,133.57
$27,410.22
$31,051.57
my answer is a
I disagree. If she claims the standard deduction, she cannot file a Schedule A as well, so she cannot deduct the interest and charity.
I pick C
thank you
To calculate Amanda's taxable income, we need to subtract her deductions and exemptions from her gross income.
Gross income: $37,250
IRA contributions: $489.78
Charitable donations: $782
Mortgage interest: $1,276.65
Total deductions: $489.78 + $782 + $1,276.65 = $2,548.43
Standard deduction: $5,700
Exemption: $3,650
Total deductions and exemptions: $5,700 + $3,650 = $9,350
Taxable income = Gross income - Total deductions and exemptions
Taxable income = $37,250 - $9,350
Taxable income = $27,900
Therefore, Amanda's taxable income is $27,900.
The correct answer is $27,900.
To calculate Amanda's taxable income, we need to subtract her deductions from her gross income.
First, let's calculate the total deductions:
- Standard deduction: $5,700
- Exemption: $3,650
Total deductions = $5,700 + $3,650 = $9,350
Next, let's subtract the total deductions from Amanda's gross income:
Taxable income = Gross income - Total deductions
Taxable income = $37,250 - $9,350
Taxable income = $27,900
Therefore, Amanda's taxable income is $27,900.
None of the provided answer options match the calculated amount. Please double-check your calculations or the answer choices.