Question

A part-time limousine driver made $9073.89 last year. If he claimed himself as an exemption for $3650 and had a $5700 standard deduction, what was his taxable income last year?

Answer 1

Answer: The answer is 0

Explanation: the answer is 0 because, you do not represent a negative number when filing taxes, instead place a 0

Answer 2

His taxable income last year was -$276.11. He has a negative amount of taxable income because the exemption and the allowed deduction exceeds his annual gross income. Annual gross income must be decreased by the allowed deduction and the exemption to find the taxable income amount of a person. Taxable Income = Annual Gross Income - (Deduction + Exemption)