7
QuizMultiple Choice

Social Security and Medicare — Unit test

Question 7 • FL-2102373-Personal Finance and Money Management Honors

You have a gross income of $117,151 and are filing your tax return singly. You claim one exemption and can take a deduction of $2,713 for interest on your mortgage, an adjustment of $2,791 for business losses, an adjustment of $1,346 for alimony, a deduction of $2,086 for property taxes, a deduction of $2,376 for contributions to charity, and an adjustment of $1,091 for contributions to your retirement fund. The standard deduction for a single filer is $5,700, and exemptions are each worth $3,650. What is the difference between your adjusted gross income and your taxable income?

Answer
A
$16,053
B
$9,350
C
$10,825
D
$14,475
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You have a gross income of $117,151 and are…