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Emily, who is single, sustains an NOL of $7,800 in 2022. The loss is carried forward to 2023. For 2023, Emily's income tax information
Emily, who is single, sustains an NOL of $7,800 in 2022. The loss is carried forward to 2023. For 2023, Emily's income tax information before taking into account the 2022 NOL is as follows: Adjusted gross income $ 48,200 Itemized deductions*: Medical [$3,650 - (7.5% x $48,200)] Taxes $ 35 6,100 Interest expense on home mortgage Taxable income 11,000 (17,135) $31,065 *The 2022 single standard deduction is $12,950; Emily's itemized deductions will exceed the 2023 single standard deduction (after adjustment for inflation). How much of the NOL carryforward can Emily use in 2023, and what is her adjusted gross income and her taxable income?
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