Scenario 2 Murphy Brown is an investigative journalist and N

Scenario 2: Murphy Brown is an investigative journalist and New York newsanchor. She is the mother of Avery, age 4, who lives with her. Her income is $200,000. She takes the standard deduction.

What is her taxable income?

What is her tax before credits?

Solution

As per IRS, if an individual claims standard deduction from income instead of itemized deductions then she is not eligible to claim dependent and child care tax credit. Standard deduction for single taxpayer is $6,350 for the year 2017.

Taxable income = 200,000 - 6,350 = $193,650