find the gross income, the adjusted gross income, and the taxable income. base the taxable income on the…

find the gross income, the adjusted gross income, and the taxable income. base the taxable income on the greater of a standard deduction or an itemized deduction. a taxpayer earned wages of $48,600, received $490 in interest from a savings account, and contributed $8400 to a tax - deferred retirement plan. he had itemized deductions totaling $6610, which is less than the standard deduction of $12,550 for his filing status. his gross income was $ (simplify your answer.)

find the gross income, the adjusted gross income, and the taxable income. base the taxable income on the greater of a standard deduction or an itemized deduction. a taxpayer earned wages of $48,600, received $490 in interest from a savings account, and contributed $8400 to a tax - deferred retirement plan. he had itemized deductions totaling $6610, which is less than the standard deduction of $12,550 for his filing status. his gross income was $ (simplify your answer.)

Answer

Explanation:

Step1: Define gross income components

Gross income is the sum of wages, interest. So, gross income = wages + interest. Gross income = $48600 + 490=49090$.

Step2: Calculate adjusted - gross income

Adjusted - gross income = gross income - tax - deferred retirement plan contribution. Adjusted - gross income = $49090-8400 = 40690$.

Step3: Determine taxable income

Since itemized deductions ($6610$) is less than the standard deduction ($12550$), we use the standard deduction. Taxable income = adjusted - gross income - standard deduction. Taxable income = $40690 - 12550=28140$. But we are asked for gross income only.

Answer:

$49090$