Kate is single and a homeowner. In 2018, she has property taxes on her home of $4,000, pays state income taxes of $5,000, makes charitable contributions of $3,000, and pays home mortgage interest of $6,000. Kate's adjusted gross income for 2018 is $77,000.Required: Compute her taxable income for 2018.
What will be an ideal response?
| Adjusted gross income | $77,000 |
| Minus: | Itemized deductions: |
| Property taxes | $4,000 |
| State income taxes | 5,000 |
| Home mortgage interest | 6,000 |
| Charitable contributions | 3,000 | ( 18,000) |
| Taxable income | $59,000 |
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