Itemized Deductions: During 2009 Sam had incurs the following deductible expenses: state income taxes $2,300,local property taxes $2,000, medical expenses $800,and charitable contributions $1,500. Sam is aingle with no dependents and has a $35,000 AGI for the year. WHAT IS THE AMOUNT OF SAM TAXABLE INCOME?
To determine Sam's taxable income, we need to subtract the total amount of itemized deductions from his adjusted gross income (AGI). The itemized deductions include state income taxes, local property taxes, medical expenses, and charitable contributions.
First, let's calculate the total amount of itemized deductions:
State income taxes: $2,300
Local property taxes: $2,000
Medical expenses: $800
Charitable contributions: $1,500
Total itemized deductions = $2,300 + $2,000 + $800 + $1,500 = $6,600
Now, we can calculate Sam's taxable income:
Taxable income = AGI - Total itemized deductions
Taxable income = $35,000 - $6,600 = $28,400
Therefore, Sam's taxable income is $28,400.
To determine Sam's taxable income, we need to calculate his itemized deductions and subtract them from his adjusted gross income (AGI).
The itemized deductions in this case are: state income taxes ($2,300), local property taxes ($2,000), medical expenses ($800), and charitable contributions ($1,500).
First, we sum up all the itemized deductions:
$2,300 + $2,000 + $800 + $1,500 = $6,600
Next, we subtract the total itemized deductions from Sam's AGI:
$35,000 - $6,600 = $28,400
Therefore, Sam's taxable income is $28,400.