What would sallys taxable income be

Reference no: EM131972313

Problem

Sally, age 45, single, no dependents, has wages of $55,000 in 2017. Sally has deductible medical expenses of $15,000 in 2017 before the 10% of AGI floor. Sally is trying to decide whether she should contribute $5,000 to a deductible IRA in 2017. Without the IRA contribution, Sally's taxable income for 2017 would be $41,450 ($55,000 - $9,500 ID - $4,050 exemption = $41,450). What would Sally's taxable income be if Sally contributed $5,000 to a deductible IRA in 2017?

Reference no: EM131972313

Questions Cloud

Calculate the firms educational expense deduction : Sally and Martha are tax accountant partners operating a tax firm in San Diego. Calculate the firm's educational expense deduction for the current year.

What is the percent forward premium : You observe that the spot price of the Swiss franc (CHF) is 1.02 USD/CHF, and that the 1 year forward rate is 1.15 USD/CHF. What is the percent forward premium?

Compute the budgeted dollar value of the companies inventory : Compute the budgeted dollar value of the companies inventory on May 21, 20X8. How much merchandise should the company plan to purchase during Jun 20X8?

What is break-even stock price : You buy a put option on a stock for a premium of $2.17. The current stock price is $53, and the option strike price is $43. What is your break-even stock price?

What would sallys taxable income be : Sally, age 45, single, no dependents, has wages of $55000 in 2017. What would Sally's taxable income be if Sally contributed $5,000 to a deductible IRA in 2017?

Determining the lower the monthly payments : How much longer (in months) will it take you to repay this loan than you had originally planned?

Possibly reduce its economic exposure to exchange rate risk : If it borrows yen, it will be exposed to exchange rate risk. How can CRI borrow yen and possibly reduce its economic exposure to exchange rate risk?

Annual rate of returns : Assume no dividends paid and the AAR and GAR are based on annual rate of returns. (round to the nearest $1 and show your answer like this $394)

Create a rea model using the revenue cycle : Sales Orders are received from customers via the web site and reviewed by a sales. Create a REA Model using the revenue cycle with the information given above.

User Account

All Pages