Bobby an unmarried individual lives in a home with her 13yea

Bobby, an unmarried individual, lives in a home with her 13-year-old dependent son, Beaver. She files as a head of household. This year, Bobby had the following tax information: AGI of $91,300 and itemized deductions of $13,600. What is her taxable income in 2017?

A. TI = $83,200

B. TI = $73,900.

C. TI = $69,600

D. None of the above are correct.

Solution

Adjusted Gross Income : 91,300

Less : Itemized Deductions - $ 13,600

As Itemized deductions are more than standard dedution of $9,350 it is beneficial to claim itemzed deduction and forego standard deduction.

Taxable Income - $ 77,700

Answer : D None of the above answer is correct