Also can I get someone to help explain to me how this is set up I will sork it from that point Please, Thank you.
The Wilson has an annual income of 44,160$. They claim 4 exemptions and file a joint return. What is their taxable income?
this is all in the IRS tax tables
i came up the answer 34,850.00
To determine the Wilsons' taxable income, we need to understand the basics of income tax calculations. Here's how you can calculate their taxable income:
1. Start with their annual income: $44,160.
2. Determine their exemptions:
- For each exemption claimed, subtract the exemption amount from the total income.
- The current exemption amount for each dependent for the tax year 2021 is $4,300.
- In this case, the Wilsons claim 4 exemptions, so multiply $4,300 by 4, resulting in a total exemption amount of $17,200.
3. Subtract the total exemptions from the annual income:
$44,160 - $17,200 = $26,960.
Therefore, the Wilsons' taxable income is $26,960.
Remember, this calculation assumes no other deductions or adjustments. Different factors such as deductions, credits, and tax brackets can affect the final taxable income.