Subjects personal finance

Taxable Income 496676

Step-by-step solutions with LaTeX - clean, fast, and student-friendly.

Use the AI math solver

1. **State the problem:** Calculate the taxable income given the gross salary, interest earnings, dividend income, standard deduction, itemized deductions, and adjustments to income. 2. **Formula and rules:** Taxable income is calculated as: $$\text{Taxable Income} = \text{Gross Income} - \text{Adjustments} - \text{Deductions}$$ Where gross income includes salary, interest earnings, and dividend income. 3. **Calculate gross income:** $$\text{Gross Income} = 68755 + 295 + 245 = 69295$$ 4. **Choose the larger deduction:** Standard deduction = 14600 Itemized deductions = 12630 Since 14600 > 12630, use the standard deduction. 5. **Calculate taxable income:** $$\text{Taxable Income} = 69295 - 2100 - 14600$$ 6. **Show intermediate cancellation:** $$\text{Taxable Income} = 69295 - \cancel{2100} - \cancel{14600}$$ 7. **Simplify:** $$\text{Taxable Income} = 69295 - 16700 = 52595$$ **Final answer:** The taxable income is $52595$.