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how do you find the taxable income? Emily, who is single, sustains an NOL of $12,160 in 2021. The loss is carried forward to 2022.
how do you find the taxable income?
Emily, who is single, sustains an NOL of $12,160 in 2021. The loss is carried forward to 2022. For 2022, Emily's income tax information before taking into account the 2021 NOL is as follows: Adjusted gross income $60,800 Itemized deductions*: Medical [$7,296 - (7.5% x $60,800)] $2,736 Taxes 9,120 Interest expense on home mortgage 18,240 (30,096) Taxable income $30,704 * The 2021 single standard deduction is $12,550; Emily's itemized deductions will exceed the 2022 single standard deduction (after adjustment for inflation). How much of the NOL carryforward can Emily use in 2022, and what is her adjusted gross income and her taxable income? Emily may use $ 12,160 of the NOL, resulting in adjusted gross income of $ 48,640 and taxable income $ 17,968 XStep by Step Solution
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