Karen is single. Last year she earned $37,300 in wages. Additional tax information for the year is as follows: interest earned: $135; capital gains from sale of stock: $1,650; penalty on early withdrawal of savings: $400; contributions to Keogh retirement fund: $1,800; real estate taxes paid: $3,000; mortgage interest paid: $3,100. The following table gives the standard deduction for various filing statuses.

Standard Deductions

Single or married filing separately	$12,000
Married filing jointly or surviving spouse	$24,000
Head of household	$18,000
65 or older and/or blind and/or someone else can claim you (or your spouse if filing jointly) as a dependent:	Varies (See www.irs.gov for information.)

Find the taxable income for the year.

Answer rating: 100% (QA)

Adjusted Gross Income It is the income which is subject to income tax and is arrived at after dedu... View the full answer