Question

A part-time handyman made $8798.04 last year. If he claimed himself as an exemption for $3650 and had a $5700 standard deduction, what was his taxable income last year?

A. $0
B. $5148.04
C. $3098.04
D. $551.96

Answer 1

The handyman's taxable income last year was $0.

Step-by-step explanation:

To calculate the taxable income, we need to subtract the exemption and standard deduction from the total income. The handyman made $8798.04 last year, claimed $3650 as an exemption, and had a $5700 standard deduction. Therefore, the taxable income can be calculated as follows:

Total Income - Exemption - Standard Deduction = Taxable Income

$8798.04 - $3650 - $5700 = $-549.96

Since the result is negative, the taxable income is $0.