Question

Nathan is married, filing jointly, has a gross income of $59,300, adjustments of $2,460, 2 exemptions of $24,800, and deductions of $16,500.

a) $35,340
b) $27,840
c) $26,340
d) $19,340

Answer 1

The taxable income for Nathan is $18,000, which can be calculated by subtracting the deductions and exemptions from the adjusted gross income.

Step-by-step explanation:

To calculate the taxable income, we subtract the deductions and exemptions from the adjusted gross income. In this case, the adjusted gross income is $59,300, deductions are $16,500, and exemptions are $24,800 (2 exemptions of $12,400 each). Therefore, the taxable income would be:

Taxable income = Adjusted gross income - (Deductions + Exemptions) = $59,300 - ($16,500 + $24,800) = $59,300 - $41,300 = $18,000

The correct answer would be option a) $35,340.