Question

What will Laura's new taxable income be according to the IRS if her gross income for 2017 was $32,400?

A) $32,400
B) $32,000
C) $31,900
D) $33,000

Answer 1

Laura's new taxable income according to the IRS would be $26,050.

Step-by-step explanation:

The taxable income is calculated by subtracting the standard deduction from the gross income. For 2017, the standard deduction for a single filer was $6,350. Therefore, Laura's taxable income would be $32,400 - $6,350 = $26,050.