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Linda Raabe. Earns $15,900 annually. Single, dependents. What are her personal exemptions?

a. $0
b. $1,000
c. $2,000
d. $3,000

User Zsalzbank
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1 Answer

7 votes

Final answer:

The correct answer to the student's question about Linda Raabe's personal exemptions is a. $0, as personal exemptions were eliminated starting with the 2018 tax year. The additional context provided explores a scenario involving a single mother who must decide between working and receiving government benefits, illustrating the impact of various work choices on total income.

Step-by-step explanation:

The student's question regarding Linda Raabe's personal exemptions can be directly addressed by noting that personal exemptions are no longer a part of the tax code as of the 2018 tax year due to changes enacted by the Tax Cuts and Jobs Act (TCJA). Therefore, the correct answer to the question is a. $0.

Concerning the information provided, it appears to pertain to several different unnamed individuals in various financial scenarios, including employment and government benefits. One such scenario involves a person named Susan, a single mother who has the option to work up to 2,000 hours per year at $8 per hour or receive government benefits that decrease by $1 for every $1 earned. To analyze this situation, a table would need to be created showing the trade-offs between working hours, earnings from work, government support, and total income. This situation is intended to demonstrate the potential transitional costs associated with moving from government support to self-sufficient earnings through employment.

User Dejwi
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