Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 16 - Public Finance: Expenditures and Taxes - Problems - Page 356: 3b

Answer

$52,700

Work Step by Step

The gift from your grandmother is not taxable income since it is less than ${$13,000}$. There are two members in your household, so your reduction is $2\times{$3,650} = {$7,300}$ Subtracting these deductions from your gross income of ${$65,000}$, your taxable income is ${$52,700}$.
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