Question

Total income $118,000 Excludable income 2,000 Deductions for adjusted gross income 2,500 Deductions from adjusted gross income 8,000

The standard deduction for filing single is $12,000.)

Do not round intermediate computations. Round the final tax liability to the nearest cent.

Based on the above information, for a single individual, adjusted gross income (AGI) is $, taxable income is $ and the tax liability is $.

Answer 1

Particulars	Amount
Total Income	$       1,18,000
Less : Excludable Income	$             2,000
Less : Deductions for AGI	$             2,500
Adjusted Gross Income	$       1,13,500
Deeuction from AGI	$           12,000
(Greater of Standard Deduction $12,000 & Itemized deductions $8,000)
Taxable Income	$       1,01,500
Tax Liability	$           18,650

Tax liability slab used = $14,089.50 plus 24% of the amount over $82,500