Question

Maria had exemptions of $4,000 for herself and dependents. Her deductions include $12,500 for damage caused to her house by a lightning storm, $500 for charitable contributions, and property taxes of $1,500. What is her taxable income if she has an income of $62,500?

$81,000
$62,500
$44,000
$50,000

Answer 1

Total exemptions and deductions:
exemption for herself and dependents : 4,000
uninsured loss or damage due to fire: 12,500
Property tax paid 1,500
Charitable contributions 500
18,500

Total Income : 62,500
less: total exemptions and deductions: 18,500
Taxable Income 44,000