Determination of Tax

Dawn is a single taxpayer. Her income and expenses for the year is as follows:

Income

Salary - $69,260

Interest - $611

Short term capital loss - $5,930

Expenses

Medical expenses - $2,000

Home mortgage interest - $3,200

Property Taxes - $1,400

Charitable contributions - $900

Requirement B. Compute Maria's taxable income.

Individual Taxpayers \begin{tabular}{|c|c|} \hline If Taxable Income Is Between: & The Tax Due Is: \\ \hline 0$9,875 & 10% of taxable income \\ \hline$9,876$40,125 & $987.50+12% of the amount over $9,875 \\ \hline$40,126$85,525 & $4,617.50+22% of the amount over $40,125 \\ \hline$85,526$163,300 & $14,605.50+24% of the amount over $85,525 \\ \hline$163,301$207,350 & $33,271.50+32% of the amount over $163,300 \\ \hline$207,351$518,400 & $47,367.50+35% of the amount over $207,350 \\ \hline$518,400 & $156,235+37% of the amount over $518,400 \\ \hline \end{tabular}