Jeffrey earned a gross income of $78,350 last year. He made $2,489.78 in student loan interest deductions, donated $4,294 to his favorite charities and paid $3,571.32 in home mortgage interest. Jeffrey claims a standard deduction of $11,400 for himself and his non-working spouse. If their exemption is $7,300, what is their taxable income?
The amount of tax deduction income for Jeffery will be gross income less expenses and exemptions. Total expenses is given by: (loan interest)+(donations)+(mortgage)+(personal claims)+(exemptions) =(2489.78+4294+3571.32+11400+7300) =$29,055.1 thus the taxable income will be: 78350-29055.1 =$49,294.9
