Daniel purchased a residence this year . Daniel is a single parent and lives with her 1 year old daughter. this year, Daniel receive a salary of 63 and made the following payment: home mortgage interest 9000, real estate taxes 1200, state income taxes paid 11,000, state sales paid 8500, income tax preparation fee 250, charitable contributions(cash to their church) 2000, medical expenses 1000, casualty loss 6500. Daniel files as a head of household and has two eligible dependents. calculate her taxable income this year.
| Gross Income | 63000 | |||
| Adjustments | - | |||
| Adjusted gross Income(AGI) | ||||
| Standard deduction or itemised deduction | ||||
| Standard deduction | 18350 | |||
| Itemised Deduction (Refer notes) | 29700 | 29700 | ||
| Taxable Income during the year | 33300 | |||
| Schedule A | Itemised deduction | |||
| Medical expenses | ||||
| (i)AGI*10% | 6300 | |||
| (ii)expenses | 1000 | |||
| Amt >6300 is allowed as deduction | 0 | |||
| Taxes Paid | ||||
| real estate taxes | 1200 | |||
| state Income taxes paid | 11000 | |||
| state sales tax | 8500 | |||
| Either of state Income taxes or Sales Taxes paid is allowed as deduction | 12200 | |||
| Interest paid | ||||
| home mortgage interest | 9000 | |||
| charitable contributions | ||||
| 60% of AGI | ||||
| Deductable(60% of AGI) | 37800 | 2000 | ||
| Casuality Loses | 6500 | |||
| 29700 | ||||
Daniel purchased a residence this year . Daniel is a single parent and lives with her...