Chapter 3 Computing The Tax
Tom’s standard deduction is $12,400 (basic) + $1,650 (additional) for a total of $14,050. Consequently, he should select the standard deduction option since it exceeds his itemized deductions of $7,000. Thus, his taxable income is determined as follows: $50,000 (AGI) – $14,050 (standard deduction). ................
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