Question

Ramon, a single taxpayer with no dependents, has adjusted gross income for 2021 of $98,000 and his itemized deductions total $9,000. what taxable income will ramon show in 2021?

Answer 1

Ramon's taxable income for 2021 is $89,000, calculated by subtracting his itemized deductions of $9,000 from his adjusted gross income of $98,000.

Step-by-step explanation:

To calculate Ramon's taxable income for 2021, we need to subtract his deductions from his adjusted gross income (AGI). As his AGI is $98,000 and his itemized deductions total $9,000, we can use the basic formula for taxable income:

taxable income = adjusted gross income - (deductions and exemptions).

Since there is no mention of exemptions or whether the standard deduction would be more beneficial for Ramon, we will only subtract the itemized deductions he has. Thus:

taxable income = $98,000 - $9,000

Ramon's taxable income for 2021 would therefore be $89,000.