Paula Abacad had an adjusted gross income of 24 200 last yea

Paula Abacad had an adjusted gross income of $24, 200 last year. She had deductions of $207 for state income tax, $2980 for property tax, $1826 in mortgage interest, and $452 in contributions. Abacad claims one exemption and files as a single person. Find the tax she owes. The Soccer Hall of Fame owns a class-C building with a replacement cost of $116, 200

Solution

Here the total taxable income that she owes = Total gross income - Deductions

= 24200 - (207+2980+1826+452)

=24200 - 5465

=$ 18735

Now based on tax rule on income earned in 2016, for a single person, if the taxable income ranges from $9,276-$37650 then she has to pay 15% of his//her taxable income.

So here the required total tax that she owes =15% of 18735 = 0.15 x 18735 = $2810.25

that is last required answer.