anonymous
  • anonymous
This is my first time joining! I have a question. I don't know how to figure out any of the questions in this picture...someone help?
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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katieb
  • katieb
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
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anonymous
  • anonymous
@jim_thompson5910 @zepdrix @.Sam. @ganeshie8 @aaronq
jim_thompson5910
  • jim_thompson5910
how far did you get?

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anonymous
  • anonymous
im still stuck on number 1. :(
anonymous
  • anonymous
@jim_thompson5910 ??
jim_thompson5910
  • jim_thompson5910
ok sorry, one sec, I'm reading an article on how to calculate all this it's definitely a lot, but I think I can translate it all for you
anonymous
  • anonymous
wow thank you so much :)
anonymous
  • anonymous
is it too difficult? :(
jim_thompson5910
  • jim_thompson5910
no I think it's doable, still reading though
anonymous
  • anonymous
oh thank god!!!!
jim_thompson5910
  • jim_thompson5910
according to this page here http://www.obliviousinvestor.com/the-difference-between-exemptions-deductions-and-credits/ it states that "The IRA contribution is an above the line deduction, and the charitable donation is a below the line" and from this page here: http://www.irs.gov/taxtopics/tc456.html it states that "The deduction is claimed as an adjustment to income so you do not need to itemize your deductions" so this means that student loan interest deductions are above the line deductions ------------------------------------------------------- so what this means is that you start with the gross income of 24600, then you subtract off the above the line deductions to get (gross income) - (IRA contributions) - (student loan interest payments) (24600) - (600) - (1675) 22,325 So the adjusted gross income (AGI) is $22,325
jim_thompson5910
  • jim_thompson5910
this is a lot and it's all for #1, hopefully it all makes sense (read it over a few times if it doesn't)
anonymous
  • anonymous
oh my gosh ok one second
anonymous
  • anonymous
ok my dad just explained it a little better to me:) thank you!
jim_thompson5910
  • jim_thompson5910
that's great
anonymous
  • anonymous
alright so how do we go about number 2?
jim_thompson5910
  • jim_thompson5910
there is only one itemized deduction in this case, and it is the $940 in charitable donations made
jim_thompson5910
  • jim_thompson5910
so you have a choice, you can either choose a) the standard deduction of $5700 OR b) the itemized deductions of $940 which one do you choose?
anonymous
  • anonymous
oh my gosh im sorry my account got messed up i used an email i could verify haha but ummmm lets go with the standard :)
anonymous
  • anonymous
@jim_thompson5910
jim_thompson5910
  • jim_thompson5910
good choice, you can choose whichever option you want, but if you want to save more money, you go with the higher deduction
jim_thompson5910
  • jim_thompson5910
so that wraps up #2
jim_thompson5910
  • jim_thompson5910
for #3, there are 2 personal exemptions: you and your kid each exemption is 3650, so 2 of those exemptions gives you 2*3650 = 7300 so the value of your exemptions is 7300
anonymous
  • anonymous
okay :) whats next?
jim_thompson5910
  • jim_thompson5910
finally for #4, you subtract off the deductions and the exemptions so... (AGI) - (deductions) - (exemptions) (22325) - (5700) - (7300) 9,325 this means that the final taxable income is $9,325
anonymous
  • anonymous
wait! i thought we were on number 3?
jim_thompson5910
  • jim_thompson5910
#3 is just calculating the exemptions
jim_thompson5910
  • jim_thompson5910
#4 is calculating the taxable income
jim_thompson5910
  • jim_thompson5910
once you get 7300 in exemptions, you're done with #3
anonymous
  • anonymous
i dont get it? can you show the work for number 3 so i understand?
jim_thompson5910
  • jim_thompson5910
all you do for #3 is 2*3650 = 7300
jim_thompson5910
  • jim_thompson5910
not much work to show really
jim_thompson5910
  • jim_thompson5910
remember there are 2 exemptions: you and your child
anonymous
  • anonymous
oh now i feel super stupid :( lol
jim_thompson5910
  • jim_thompson5910
its ok, you're not dumb
anonymous
  • anonymous
wow. @jim_thompson5910 i applaud you
goformit100
  • goformit100
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