Question

Given $59,300 income, adjustments of $2460, 2 exemptions of $24,800, and deductions of $16,500, how much is his tax?

a) $1553
b) $1666
c) $2062
d) $2260

Answer 1

The tax owed would be $0 since the taxable income is negative.

Step-by-step explanation:

To calculate the tax owed, we need to determine the taxable income. This can be done by subtracting the adjustments, exemptions, and deductions from the total income.

Taxable Income = Income - Adjustments - Exemptions - Deductions

For this question, the taxable income would be: $59,300 - $2,460 - ($24,800 x 2) - $16,500 = $59,300 - $2,460 - $49,600 - $16,500 = $-9,260

Since the taxable income is negative, the tax owed would be $0.