A man earned wages of 42100 received 2200 in interest from a

A man earned wages of $42100, received $2200 in interest from a savings account, and contributed $ 2800 to a tax deferred retirement plan. He was entitled to a personal exemption of $ 2600 and has deductions totaling $5090. Find his gross income, and taxable income.

Solution

earnings = wages + interest

so total gross income is 42100 + 2200 = 44300

now left is gross income - tax deferred retirement plan - personal exemption - deductions

44300 - 2600 - 2800 - 5090 = 33810

taxable income = $ 33810