Question

John works as a sales representative and travels extensively for his employer's business. this year John was paid $98,000 in salary and made the following expenditures :

Federal income taxes withheld 10,000, State income taxes withheld 5,000, Medical expenses 1,000, Employee business expenses (unreimbursed portion) 1,000, Charitable contributions 500, Investment counseling fees 800, Will preparation fee 500. John also made a number of trips to Connecticut for gambling. This year john won $5,000 after spending $18,500. Calculate john's taxable income if he files single with one personal exemption.

Answer 1

Basic Salary Of John is $98000

Calculation Of Net Taxable Income of john

Particular	Taxable Amount	Deductions
Basic Salary	98000
Federal Income Tax	10000
State Income Tax	5000
Medical Expenses		1000
Charitable Contribution		500
Investment Couselling Fees		800
Will Preparation Fees		500
Winning Amount	5000
Employee Business Expenses		1000
	118000	3800

Net Taxable Income Of John Is = 118000-3800

=114200