Question

question 6 of 10
duane is filing his federal income tax return with the 1040ez form using the single filing status, and nobody can claim him as a dependent. if he had wages, salaries, and tips of $37,400, taxable interest of $160, and no unemployment compensation, what should he enter on line 6 of the income section below?

income
attach
form(s) w-2
here.
endose, but do
not
attach, any
payment.
1 wages, salaries, and tips. this should be shown in box 1 of your form(s) w-2.
attach your form(s) w-2. 1
2 taxable interest. if the total is over $1,500, you cannot use form 1040ez. 2
3 unemployment compensation in excess of $2,400 per recipient and alaska permanent
fund dividends (see page 11). 3
4 add lines 1, 2, and 3. this is your adjusted gross income. 4
5 if someone can claim you (or your spouse if a joint return) as a dependent, check
the applicable box(es) below and enter the amount from the worksheet on back.
□ you □ spouse
if no one can claim you (or your spouse if a joint return), enter $9,350 if single;
$18,700 if married filing jointly. see back for explanation. 5
6 subtract line 5 from line 4. if line 5 is larger than line 4, enter -0-.
this is your taxable income. 6

a. $18,860
b. $0
c. $28,210

Explanation:

Step1: Calculate adjusted gross income (line 4)

Duane's wages, salaries, and tips (line 1) are $37,400, taxable interest (line 2) is $160, and unemployment compensation (line 3) is $0. So, line 4 = $37,400 + $160 + $0 = $37,560.

Step2: Determine line 5 amount

Since nobody can claim Duane as a dependent and he is single, line 5 is $9,350.

Step3: Calculate taxable income (line 6)

Subtract line 5 from line 4: $37,560 - $9,350 = $28,210.

Answer:

C. $28,210