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Daniel Simmons arrived at the following tax information:

Gross salary $ 62,250 Interest earnings $ 75
Dividend income $ 140 Adjustments to income $ 850
Standard deduction $ 12,400


What amount would Daniel report as taxable income?

User Jsarma
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1 Answer

11 votes
11 votes

Final answer:

To calculate Daniel's taxable income, we need to subtract the standard deduction from his adjusted gross income. Daniel's adjusted gross income is $63,315 and the standard deduction is $12,400. Therefore, Daniel would report $50,915 as his taxable income.

Step-by-step explanation:

To calculate Daniel's taxable income, we need to subtract the standard deduction from his adjusted gross income. Starting with Daniel's gross salary of $62,250, we add the interest earnings, dividend income, and adjustments to income, which give us a total adjusted gross income of $63,315.

Next, we subtract the standard deduction of $12,400 from the adjusted gross income:

$63,315 - $12,400 = $50,915.

Therefore, Daniel would report $50,915 as his taxable income.

User Sonu Sanjeev
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