Assignment:
Q1.Personal Exemption' is the dollar amount that each individual taxpayer is able to deduct for him or herself or a dependent each year. For tax year 2013, the standard personal exemption amount was $3900 per person. Kate is single and a homeowner. In 2013, she has property taxes on her home of $3,000, makes charitable contributions of $2,000, and pays home mortgage interest of $7,000. Kate's adjusted gross income for 2013 is $77,000.
Required: Compute her taxable income for 2013.
Q2.The following information is available for Bob and Brenda Horton, a married couple filing a joint return, for 2013. Both Bob and Brenda are age 32 and have no dependents.
Salaries $180,000
Interest income 12,000
Deductible IRA contributions 10,000
Itemized deductions 22,600
a.What is the amount of their gross income?
b.What is the amount of their adjusted gross income?
c.What is the amount of their taxable income?
Q3. Gross income is an individual's income and receipts from nearly all sources. It is the starting point for determining the taxes that individual will pay.you are required to mention the items that are included in gross income.