+84 Claire earned a gross income of $65,745 last year. She made $1,344.50 in student loan interest deductions and $2,309.67 in IRA contributions. She also made $2,170.83 in non-reimbursed medical expenses, donated $432.16 to her favorite charity, and paid $861.23 toward her mortgage interest. Claire claims a standard deduction of $11,400 for herself and her non-working spouse. If their exemption is $7,300, what is their taxable income?
+36923 My understanding is that you can itemize deductions OR claim a Standard deduction...but not BOTH. Her standard deduction is greater than her other possible deductions listed . She is allowed the exemption 7300. She also can deduct her IRA contributions as it is considered an 'above- the- line' deduction (and she is below the phase out income limits---does not matter if you itemize or take standard deduction....ALSO if she has a retirement plan at work her IRA MAY not be deductible)
65745 - IRA - 11400 - 7300= 44735.33
P.S. I am NOT an accountant or tax advisor !!!! LOL
