Question

Alicia (age 27) is a single, full-time college student. she earns $13,200 from a part-time job and has taxable interest income of $1,450. her itemized deductions are $845. what is her taxable income

Answer 1

Alicia's taxable income for 2015,

Formula to calculate Alicia’s taxable income

Total Income = Part time earning from Job + taxable interest income – standard deduction or itemized deduction whichever is higher

= $13200+$1450-6-$6300

= 14650

Standard deduction = $6300

Taxable Income = $8,350