Answered

Discover the answers to your questions at Westonci.ca, where experts share their knowledge and insights with you. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

Compute the taxable income for 2021 for Aiden on the basis of the following information. Aiden is married but has not seen or heard from his wife since 2019.

Salary $80,000
Interest on bonds issued by City of Boston 3,000
Interest on CD issued by Wells Fargo Bank 2,000
Cash dividend received on Chevron common stock 2,200
Life insurance proceeds paid upon death of aunt
(Aiden was the designated beneficiary of the policy) 200,000
Inheritance received upon death of aunt 100,000
Jackson (a cousin) repaid a loan Aiden made to him
in 2015 (no interest was provided for) 5,000
Itemized deductions (state income tax, property taxes on
residence, interest on home mortgage,
and charitable contributions) 9,700
Number of dependents (children, ages 17 and 18,
and mother-in-law, age 70) 3
Age 43

Sagot :

anthougo

Aiden's taxable income for 2021 based on the information given is $66,200.

What is taxable income?

Taxable income is the total income that an individual receives that is non-taxable in a tax year minus the allowed deductions.

Data and Calculations:

Salary = $80,000

Interest on bonds = $3,000 (non-taxable)

Interest on CD = $2,000

Cash dividend = $2,200

Life insurance proceeds = $200,000 (non-taxable)

Inheritance = $100,000 (non-taxable)

Loan repayment to Aiden = $5,000 (non-taxable)

Itemized deductions = $9,700

Standard deduction for head of household = $18,000

Aiden's taxable income = $66,200 ($80,000 + $2,000 + $2,200 - $18,000).

Thus, Aiden's taxable income for 2021 based on the information given is $66,200.

Learn more about computing taxable income at https://brainly.com/question/10137785

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.