Maxine,who Is 76 Years Old and Single,is Appropriately Claimed as a Dependent

question 10

Essay

Maxine,who is 76 years old and single,is appropriately claimed as a dependent on her daughter Beth's tax return.During 2017 she received $500 interest on a savings account.She had a part time job that earned $3,000.Her total itemized deductions were $1,300.
Required: Compute Maxine's taxable income for 2017.Show all calculations.

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Definitions:

Average Tax Rate

The proportion of the total tax paid to the total taxable income, calculated by dividing the total tax amount by the taxable income.

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate at which your last dollar of income is taxed.

Taxable Income

Taxable income is the amount of an individual's or business's income used to calculate how much tax they owe to the government in a given tax year, after all deductions and exemptions.

Tax Cutters

Advocates or policies aimed at reducing the level of taxation.