Misti purchased a residence this year. Misti is a single parent and lives with h
ID: 2426101 • Letter: M
Question
Misti purchased a residence this year. Misti is a single parent and lives with her 1—year old daughter. This year, Misti received a salary of $63,000 and made the following payments:
Home mortgage interest
$2,335
Real estate taxes
1,525
State income taxes paid
1,340
Income tax preparation fee
250
Charitable contributions (cash to their church)
120
Misti files as a head of household and claims two exemptions. Calculate her taxable income this year.
Home mortgage interest
$2,335
Real estate taxes
1,525
State income taxes paid
1,340
Income tax preparation fee
250
Charitable contributions (cash to their church)
120
Explanation / Answer
Calculation of taxable income of Misti
Misti received a salary = $63,000
Home mortgage interest = $2,335
Real estate taxes = $1,525
State income taxes paid = $1,340
Income tax preparation fee = $250
Charitable contributions = $120
(cash to their church)
Gross Annual Income = $68,570
Deductions
(-) Home mortgage interest = $2,335
(-) Charitable contributions = $120
(-) Real estate taxes = $1,525
(-) Standerd deduction = $9,300
Taxable Income this year = $55290