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Sally's adjusted gross income is $38,000. She owns a home and has a mortgage interest expense...

Sally's adjusted gross income is $38,000. She owns a home and has a mortgage interest expense of $9500, charitable contributions of $1500, property tax of $7000 and interest on her car loan of $2100. This year she also had medical expenses of $2000. She is allowed a standard deduction of $12,000. What is Sally's taxable income?

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Answer #1
Particulars Amount
Sally's Gross Income 38,000
Less: Mortgage Interest Expense (9,500)
Less: Charitable Contributions (1,500)
Less: Property Tax (7,000)
Less: Standard Deduction (12,000)
Sally's Taxable Income $ 8,000

NOTE: Interest on car loan and medical expenses is not deductible.

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