Hugo always get hit with a big tax bill in April. He has only a minimum amount withheld from his paycheck. He has completed the adoption of his 4-year old nephew two years ago. He now has significant child care costs. His employer offers several benefits which would reduce his taxable income like a 401(k) and a flexible spending plan for medical expenses. 

Earnings from wages	$72,113
Interest earned on savings	$75
Checking account interest	$45
Current standard deduction for filing status	$18,650
Amount withheld for federal income tax	$4,825
Tax credit for child care	$1,200
Child tax credit	$3,000
Filing status	Head of household

What is Hugo's taxable income? Show your equation (example:  a + b + c - d = e)

Answer rating: 100% (QA)

Hugos taxable income is calculated as follows Taxable income Earning... View the full answer