Question

Poole is 45 years old and unmarried. Assume that he is subject to a 15% tax bracket. He had adjusted gross income of $30,000. The following information applies to Poole: Medical expenses $ 15,250 Standard deduction 12,000 Poole wishes to minimize his income tax. What is Poole's total income tax?

Answer 1

Answer: $18,000

Explanations

Income tax is total gross income less allowable deductions.

Gross income 30,000

Allowable medical expenses 12,000

Total income tax. 18,000

The income tax is the amount of gross income that will be subjected to tax after all allowable deductions and it's usually Lower than gross income.