Mike's gross yearly income is $61,368. He is single with no children, and his tax deductible purchases are:

Charitable contributions: $2,157
Mortgage Interest: $2,377
Student Loans: $2,557
Compute his taxable income. Round your answer to the nearest dollar

Recall the standard deduction for single filers: $13,850

To calculate Mike's taxable income, we follow these steps:

1. **Gross Income:**  
   Mike's gross yearly income is $61,368.

2. **Tax Deductible Expenses:**
   - Charitable contributions: $2,157
   - Mortgage interest: $2,377
   - Student loans: $2,557

   Total deductible purchases = $ 2,157 + 2,377 + 2,557 = 7,091 $

3. **Standard Deduction:**  
   The standard deduction for single filers is $13,850.

   Since Mike’s itemized deductions ($7,091) are less than the standard deduction ($13,850), he will use the standard deduction.

4. **Taxable Income:**  
   Mike's taxable income is calculated by subtracting the standard deduction from his gross income:

   \[
   \text{Taxable Income} = 61,368 - 13,850 = 47,518
   \]

Therefore, Mike's taxable income is **$47,518**.

Would you like further details on how tax deductions work?

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Here are 5 related questions to explore:

1. How would Mike's taxable income change if he had children?
2. How are student loan interest deductions different from other deductions?
3. What is the impact of choosing the standard deduction versus itemized deductions?
4. How do charitable contributions influence tax liability?
5. What are the tax brackets for single filers in Mike's income range?

**Tip:** Always check whether itemizing deductions or using the standard deduction gives a larger tax benefit.

Mike's gross yearly income is $61,368. He is single with no children, and his tax deductible purchases are: Charitable contributions: $2,157 Mortgage Interest: $2,377 Student Loans: $2,557 Compute his taxable income. Round your answer to the nearest dollar.

Learn how to compute taxable income for a single filer with deductions. This problem explores tax concepts such as gross income, standard vs. itemized deductions, and provides a step-by-step calculation of taxable income for a gross income of $61,368 with specified deductions. Suitable for high school students or those learning about personal finance.

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