Sally's adjusted gross income is $38,000.She does not own a home,but has charitable contributions of $1,500 and interest on her car loan of $2,100.This year she also had medical expenses of $2,000.She is allowed a standard deduction of $6300 and one personal exemption of $4,000.What is Sally's taxable income?
A) $38,000
B) $31,300
C) $27,700
D) $29,200

Question

Quizplus · Accepted Answer

Sally's taxable income is $27,700. This is calculated by subtracting her standard deduction of $6,300, one personal exemption of $4,000, and itemized deductions of $3,700 (charitable contributions of $1,500 and medical expenses of $2,200) from her adjusted gross income of $38,000.

Sally's Adjusted Gross Income Is $38,000